Ricardo’s Theory of Trade is one of the most influential theories in modern global economics. It was created in the nineteenth century by David Ricardo. The Basics David Ricardo was one of the most influential economists of the early nineteenth century. However, he actually came into economics by accident. Ricardo was born to a traditional […]
Day trading is the practice of buying and selling stocks on the same day. The goal of day trading is to earn small profits with each trade, and eventually these trades compound over time. Essentially, day traders attempt to predict the market in order to buy in at a low price and sell at a […]
Many people associate financial options with options traders who make mammoth returns on their investment. In reality, options are a useful type of financial security, which is a tradable financial asset such as a stock, that provides traders with flexibility, efficient bets, and most notably, high returns on investment if used correctly. So, what really […]
A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain. Mark Twain Ever since the 2008 financial crisis, US banks have been under a great deal of scrutiny. Whether it was providing mortgages to risky borrowers or creating risky products […]
One of the most widespread misconceptions about economics is that it’s all stocks and bonds and funds. While those certainly play a large role, economics goes beyond finance, as a tool to explain why society and its people do the things we do. Interwoven with law, politics, education, and the environment, among others, economics bridges […]
From 2007-2009, the United States witnessed its biggest economic crash since the Great Depression. The Great Recession left 8.8 million people without jobs, shooting unemployment up to 10% and leaving about 10 million Americans without homes. The stock market crashed with the DOW dropping around 7,000 points or 54% in a span of 18 months. […]
When it comes to investing, many investors with large amounts of capital use the principle of activist investing (not to be confused with active investing). Activist investing involves buying a large stake of a company (see the examples below as stakes depend on the company). These stakes give the investor influence over the company’s decisions […]
These past few weeks of heightened activism highlights that our nation is waking up to the injustices that our communities have faced for decades. Every person with common sense can acknowledge the rawness of the abuse people of color experience in this country, from the ongoing indignities to the extreme violence, like the horrendous killing […]
Stocks you trade, it’s wives you’re stuck with. – Edward C. Johnson II After the stock market plummeted in mid-March due to COVID-19 concerns, it has roared back as investor concerns about a recession and COVID-19 have receded. For example, the S&P 500 index is up nearly 40% from mid-March. Because of stay-at-home orders in […]
The rule of 72 is a handy formula to determine approximately how long an investment will take to double, using a fixed annual rate of interest. It is used for compound interest and is helpful for simple mental approximations. How It Works All you need to know is the rate of interest. You divide 72 […]
