Hedging With Puts And Calls In times of so much so of volatility and uncertainity in the market, some investors prefer turning their ways to hedging using puts and calls versus stock to reduce risk. Hedging can also be promoted by hedge funds, mutual funds, brokerage firms and some investment advisors. Hedging with puts and calls can also be done versus employee stock … [Read more...]
How Return On Equity Can Help You Find Profitable Stocks
What Is ROE? ROE is not an absolute indicator of investment value.The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. By measuring how much earnings a company can generate from assets, ROE offers a gauge of … [Read more...]
Why ETF Liquidity Matters ?
When exchange-traded funds (ETFs) were originated, they were basically and widely viewed as a more liquid alternative to mutual funds. Not only could investors gain the same broad diversification that they could with indexed mutual funds but, unlike mutual funds, they could also trade them during market hours. More significantly, institutional investors could use them to … [Read more...]
Know Your Hedge-Like Mutual Funds
A hedge fund is an investment fund open to a limited range of investors that undertakes a wider range of investment and trading activities than long-only investment funds, and that, in general, pays a performance fee to its investment manager. A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options … [Read more...]
What to buy ? ETF’s or Stocks
Should You Buy Stock Or An ETF? Whether to buy the stocks or the ETF? This is one question that Investors encounter every day. Many are under the impression that if you buy an ETF, you are stuck with receiving the average return in the sector. This is not necessarily true, depending on the characteristics of the sector. Making this choice is no different from any investment … [Read more...]