Tech Bubble in Stock Market is a pronounced and unsustainable market rise attributed to increased speculation in technology stocks. It is highlighted by rapid share price growth and high valuations based on standard metrics like price/earnings ratio or price/sales. The technology stocks involved in a bubble may be confined to a particular industry (such as internet software … [Read more...]
Yield Tilt Index Fund
An alternative to a pure index fund, a yield tilt fund diversifies its holdings among a universe of stocks that is "tilted" in the direction of higher yield, such as the high-yield stocks that comprise the S&P 500. Yield tilt funds are based on the assertion that, since dividend income is taxed at higher rates, the market must compensate for this taxation by providing … [Read more...]
Taxable Preferred Securites
Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that resembles properties of both an equity and a debt instrument and generally considered a hybrid instrument. Preferreds are senior (i.e. higher ranking) to common stock, but are subordinate to bondsUnlike the tax treatment of typical preferred securities, … [Read more...]
“After The Bell” in Stock Market
"After the bell" is basically a financial slang used for activity occurring after the close of the stock market, The New York Stock Exchange (NYSE) closes its trading day with the ringing of a bell including after-hours trading, illegal late trading of open-ended funds (during the mutual fund scandal of 2003), earnings announcements, acquisition plans and merger agreements. The … [Read more...]
The Witching Hour
Witching hour is the last hour of stock market while trading is on between 3pm (when the bond market closes) and 4pm . Witching hour is typically controlled by large professional traders, program traders and large institutional traders, and can be characterized by higher-than-average volatility. The witching hour is most commonly known in the context of triple witching, which … [Read more...]