Benjamin Graham: The Father of Value Investing

Benjamin Graham: The Father of Value Investing Benjamin Graham (1894-1976) is widely considered the father of value investing, a fundamental investment approach that involves buying stocks trading at a discount to their intrinsic value. He was also an influential educator, author, and investor who laid the foundation for the investment industry as we know it … Read more

Commodities

Commodities A commodity is a raw material that is used in the production of goods or services. It is a basic good that is interchangeable with other goods of the same type, and is usually in its unprocessed or preliminary stage. Examples of commodities include agricultural products like wheat, corn, and soybeans, metals such as … Read more

Mutual Funds

Mutual Funds A mutual fund is a type of investment vehicle where a group of investors pool their money together to purchase a diversified portfolio of securities. These securities can include stocks, bonds, and other assets. Depending of the type of mutual fund, they are can be managed by a professional portfolio manager, who makes … Read more

Insider Trading

Insider Trading I. What is Insider Trading Insider trading refers to the act of exploiting material, non-public information for personal gain in the purchase or sale of securities thus giving an unfair advantage to the trader. This information is often not yet known to the general public and is only available to a select few, … Read more

Trading

Trading I. Introduction Trading, within the financial industry, refers to the act of buying and selling financial assets with the goal of making a profit. Trading is a critical component of the financial world, as it allows individuals and institutions to make investments that can potentially generate returns. There are many different types of trading, … Read more

Stock Buybacks

Stock buybacks I. Introduction Stock buybacks, also known as share repurchases, refer to the purchase of a company’s own outstanding stock with the intention of reducing the number of outstanding shares and increasing the value of the remaining shares. This process of stock buybacks is an important tool in the investment world as it can … Read more

Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) I. Introduction A. Definition of ETFs Exchange-Traded Funds (ETFs) are a type of investment fund that holds a basket of securities, such as stocks, bonds, commodities, or a combination of these assets. ETFs are traded on stock exchanges like individual stocks, allowing investors to buy and sell ETF shares at market prices. … Read more

Financial Crisis

Financial Crisis I. Introduction A. Definition of financial crisis A financial crisis is a situation in which a significant part of the financial system of a country or the global economy experiences severe instability, leading to a sharp decline in financial assets’ value and a disruption in normal financial market functioning. B. Importance of understanding … Read more

Dividends

Dividends I. Introduction A. Definition of Dividends Dividends are a portion of a company’s profits that are paid out to shareholders on a regular basis. They represent a distribution of a company’s earnings to its investors, and they can provide a source of income for those who own shares in the company. B. Explanation of … Read more

Equity indices

Equity Indices An equity index is a statistical measure of the performance of a group of stocks representing a portion of the stock market. It provides a snapshot of the overall performance of the stock market and can be used as a benchmark for investment portfolios. Here is a more in-depth look at equity indices … Read more

S&P500

S&P500 The S&P 500 Index, also known as the Standard & Poor’s 500 Index, is one of the most widely followed equity indices in the world. The index tracks the performance of 500 large publicly traded companies based in the United States, making it a reliable barometer of the country’s economy and stock market. Origin … Read more

Stocks

Stocks Introduction to Stocks Types of stocks Common Stocks Ownership in a Corporation Voting Rights Claim on Assets and Earnings Risks and Rewards Preferred Stocks Dividends Voting Rights Claim on Assets and Earnings Risks and Rewards Difference from Common Stocks Penny Stocks Blue-Chip Stocks

Shares, stocks, securities

Shares, stocks, securities The above terms are often used interchangeably. Nevertheless, there are subtle differences that we will review below. Shares Stocks Securities In summary, all stocks are securities, but not all securities are stocks.

Bonds

Bonds I. Introduction to Bonds Bonds are a type of investment that represent a loan made by an investor to a borrower, usually a corporation or government entity. The borrower agrees to pay periodic interest payments to the investor and repay the principal amount of the loan at maturity. Bonds play an important role in … Read more

Value Investing

Value Investing Value investing is a type of investment approach that aims to find undervalued stocks and purchase them with the expectation of selling them for a higher price in the future. This investment style is based on the idea that the market does not always accurately reflect the true value of a company, and … Read more