Issuing debt and using the proceeds to pay a special dividend to stockholders. When a company incurs a new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to selling its equity stake in the company. Dividend … [Read more...]
Does Dividend Really Matters?
What is a Dividend? Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many … [Read more...]
Covered calls VS Dividends
There are 2 great ways to pull out monthly income from the stocks you own. These are covered calls and dividends.. If you are going to hold a stock for a long period of time you would like to be pulling money from your stock both ways. If you can’t pull out money both ways which way would be considered the better income? Let’s look at that for a second. A dividend is when … [Read more...]
How to Make More Money With Stock Options
Stock options can make you huge amount of money with just a small investment. Just keep in mind few things in mind while trading in it , this wud definately fetch you good returns : The time premium. As the expiration date on a stock option draws nearer the cheaper the option will become. This way you are able to buy even more calls and puts on the stock of your choice. … [Read more...]
How to Have Rules in a Stock, Futures or Forex Trading Plan
Once you start trading the stock or forex markets you need to stick with a trading plan and a set of rules to trade by. You need to stick with your plan and the rewards will follow in profitable trades. To make consistence profitable trades you need to be flexible in your trading plan and adjust it as the need arises. You need to think about what kind of a trader you are and … [Read more...]