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The stock market has offered investors compelling returns over the years, but those rewards are certainly not without risks. Investors can potentially benefit greatly from trading stocks, but you need to research this particular market thoroughly before getting started. No investment comes without risk, and the stock market is known for being volatile. Anyone who is not familiar with this volatility only needs to study famous market crashes, like those…

The global equities markets are opportune environments for active traders and investors alike. Whether you're building a retirement portfolio or pursuing profitability from speculative endeavours, online stock trading could be a viable way of achieving any number of financial objectives. Fortunately for aspiring stock traders, getting started in the markets isn't all too difficult. In fact, it is possible to begin your journey into the marketplace by completing five basic…

What Is Contribution Margin? Contribution margin is a business accounting term that measures the difference between sales revenue and the variable costs to produce or sell a product. It shows the amount of profitability a company would achieve once it covers its fixed costs, i.e., its breakeven point. A company's fixed costs remain basically the same whether it makes or sells one unit or thousands. The most common fixed costs…

What Are The Basel Accords? The Basel Accords are a set of standards created by the Basel Committee to establish uniform banking regulation among the world's financial systems. The Basel Committee was originally called the Committee on Banking Regulations and Supervisory Practices, and it was headquartered at the Bank for International Settlements in Basel, Switzerland. It was created in 1974 by the central bank governors of the Group of Ten…

What Is The Bank For International Settlements? The Bank for International Settlements (BIS), also known as "the bank for central banks," defines its mission as being an "international organisation that serves central banks and other financial authorities across the globe to build a greater collective understanding of the world economy, fosters international cooperation among them and supports them in the pursuit of global monetary and financial stability." Based in Basel,…

A "pump and dump" is an illegal scheme used to artificially boost the price of a stock by making false and misleading claims about a company's business prospects. Then, the shares are sold before the fraud becomes known, at which point the stock price usually plummets and the unsuspecting investors lose their money. Pump and dump scams have been around for a long time but are now more commonly perpetrated…

The current ratio is a business accounting formula that measures a company's ability to pay its short-term obligations, namely those due within a year. The mathematical formula is expressed as: Current Ratio = Current Assets/Current Liabilities Current assets include cash and cash equivalents, securities that can be sold quickly, short-term investments, accounts receivable, short-term notes receivable, inventories and supplies, and prepayments. Current liabilities, which are obligations that must be paid…

A collar strategy is a defensive equity play in which an investor seeks to limit the downside in a stock in exchange for forgoing some of the upside potential. This strategy is also known as a hedge wrapper. The investor buys a long position in a stock, in which he will benefit if the price goes up, although the strategy can also be accomplished without actually buying the underlying stock.…

Monetary policy is made up of the decisions and actions taken by a central bank to achieve its goals, which are typically to promote economic growth, create jobs and lower interest rates and inflation.

The money supply is the amount of currency available to consumers and businesses to make payments, in addition to the money held in checking and savings accounts. It is also made up of different components.

Price discovery is the mechanism by which buyers and sellers on an open market determine an asset's premium. In contemporary finance, the process of price discovery is carried out electronically in the markets of equities, futures, options and currencies.