FXCM Research Team

The Johannesburg Stock Exchange (JSE) is the largest stock exchange in Africa and ranks among the world's top 20 largest exchanges by market capitalisation. The exchange's mission is to help local and international investors and companies gain exposure to capital markets in Africa. In 2003, the JSE launched AltX, an alternative exchange for small and mid-sized listings, also known as the Growth Board. In July 2013, it adopted the Millennium…

Achieving success in the foreign exchange (forex) marketplace can be challenging. Nonetheless, traders from around the globe, both experienced and novice, attempt to do exactly that on a daily basis. Given the above-average failure rate of new entrants to the market, one has to wonder how long-run profitability may be attained via forex trading. Among the many ways that forex participants approach the market is through the application of technical…

What Is Return On Equity? The return on equity (ROE) is a measure of corporate profitability. It measures how much profit a company generates from shareholders equity, which is the company's total assets minus its total liabilities. ROE is expressed as a percentage, and it can be measured by a fairly simple equation: ROE = net income divided by shareholders equity. For example, if a company had US$1 million of…

What Is Passive Investing? Passive investing is an investment strategy that seeks to track the performance of a market index, such as the stock market indices S&P 500 or the Dow Jones Industrial Average. Passive investing differs from active management, in which professional portfolio managers seek to outperform a specific benchmark by buying and selling specific securities and other strategies. Two of the more popular avenues of this style of…

What Are Blue Chip Stocks? In the stock market, blue chip stocks are shares in large multinational companies with well-known names and long track records of growth and dividend payments. They got their name from poker, where blue chips are often the most valuable chips on the table. Oliver Gingold, an employee of Dow Jones—the publisher of the Wall Street Journal and the creator of the Dow Jones Industrial Average…

What Is Return On Assets (ROA)? Return on assets (ROA) is an important measurement of a company's profitability. Usually stated as a percentage, ROA measures net income divided by the company's total assets. Derived from the company's balance sheet, assets include cash and cash-equivalent items, receivables, inventories, land, and buildings and equipment. They also include intangible assets such as intellectual property, copyrights and patents, the estimated value of brand and…

What Are Real Estate Investment Trusts (REITs)? Real estate investment trusts, or REITs (pronounced "reetz"), are funds that own, develop and manage income-producing properties in a range of real estate sectors, including shopping malls, offices and commercial buildings, residential apartments and health care facilities. Some of these trusts also invest in mortgages and other property loans. Basically, REITs collect rent from the tenants of these properties and distribute the income…

What Are Tariffs? Tariffs are a tax or duty imposed on imported foreign goods. They're paid by the company importing the product, although the foreign company exporting the product may thereby find its products too expensive to sell in foreign markets depending on how high the tariffs are. The importing company paying the tariff may absorb the cost or pass it along to consumers, or a combination of the two.…

What Is A Cash Flow Statement? A cash flow statement, also known as a statement of cash flow, is one of the main financial statements, along with the income statement and the balance sheet, that companies are required by securities regulators to prepare to demonstrate their financial condition. The cash flow statement is important because it shows investors and creditors how well a company manages its cash and that it…

What Is Value Investing? Value investing is an investment strategy in which the investor seeks to profit by buying stocks they believe are underpriced or undervalued by the market at large. The investor looks to buy stocks when they believe they are "on sale," just as they would buy a box of cereal at the supermarket when it's on sale rather than paying full price. The idea of value investing…

What Is Secured Overnight Financing Rate (SOFR)? The Secured Overnight Financing Rate (SOFR) is an interest rate benchmark chosen by the Alternative Reference Rates Committee (ARRC) in 2017 as an alternative and eventual replacement for the London Interbank Offered Rate, more commonly known as Libor, which is slated to be phased out by 2021. ARRC is a committee set up by the U.S. Federal Reserve Board and the Federal Reserve…