EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Bid-Ask Spread?
The Bid-Ask Spread is the difference between an offer made on a security and the price a seller is willing to accept.
The Bid-Ask Spread is the amount by which the ask price exceeds the bid. For example, if the bid price is $50 and the ask price is $51 then the "bid-ask spread" is $1.
The larger the bid-ask spread, the less liquid the market for that particular security - buyers and sellers are too far apart for trades to occur easily. When trading, investors have to pay attention to the bid-ask spread, because it is ultimately an additional cost to investing in or trading stocks.
Is there any truth to saying “sell on Rosh Hashanah, buy on Yom Kippur?”
An old saying stipulates that you should sell your positions on Rosh Hashanah, and establish a new position on Yom Kippur
What is the “Joint and Survivor” Option?
The “Joint and Survivor” option on annuities generally provides an income guarantee for the owner and his/her spouse
What is the minimum investment in a typical hedge fund?
Hedge funds can require initial investments that are quite large. This may be somewhere between $250,000 to $10,000,000
What Does Capital Loss Mean?
Capital Loss refers to a loss realized when a security is sold for less than it was purchased for. In stock trading...
What is Burn Rate?
Burn rate is a term for negative cash flow, or the rate at which a company burns through capital, especially a startup
What is a currency peg?
Pegged currencies are not discussed often in the Forex market because their value is tied directly to the value of another
What is the commodity selection index?
The Commodity Selection Index (CSI) is a momentum indicator based on movement. It helps traders find momentum in futures
What is a Dividends Received Deduction?
A Dividends Received Deduction (DRD) is a tax deduction available to corporations when they are paid dividends from...
What is the Inverted Cup-and-Handle (Bearish) Pattern?
The Inverted Cup-and-Handle pattern forms when prices rise then decline to create an upside-down “U”like shape
What is the Symmetrical Triangle Bottom (Bearish) Pattern?
The Symmetrical Triangle Bottom pattern forms when a stock’s price fails to retest a high or a low and forms two trends