Looking Back at August August was a volatile month with the stock market dropping almost 3% on August 14, 2019 when the yield curve inverted for the first time since 2007. The yield curve inversion means that the interest rate on the US two-year bond is higher than the interest rate on the 10-year bond.…
Options are contracts that give the owner the right (but they are not required) to buy or sell an underlying asset (like a stock, ETF, etc.) at a fixed price for a specific period of time. There are two standard types of option contracts: a call and a put. Option contracts are for a specific…
Volatility is how much uncertainty or risk is present regarding a change in the value of a security. It indicates how much and how quickly the value of an investment, market or market sector changes over time. The consensus is that the higher the volatility, the riskier the security. Volatility also refers to the amount…
When companies have extra cash resources and no other investment alternative, they will often choose to buy back their own stock. There are a few reasons why a company would want to buy their own shares back: When they buy back shares, there are fewer shares on the market to be traded. The price of…