Leverage is one of the most important concepts in stock investing. It is what allows investors to make money not just from the increase in the stock’s price, but also from the increase in the company’s earnings. Leverage can be described as the use of borrowed money to purchase stocks. When you borrow money to […]
What Age Can You Trade Stocks
Age is just a number, right? Wrong. Age is a very important number when it comes to trading stocks. The reason being is that you have to be legally allowed to trade stocks in order to do so. What Age Can You Trade Stocks? In the United States, you must be at least 18 years […]
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16 Min
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What Shorting Stocks Mean
What is shorting a stock? When you short a stock, you borrow shares of the stock you hope to sell from somebody else, sell the stock, and hope the price falls so you can buy it back at a lower price and give the shares back to the person you borrowed them from. Why would […]
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21 Min
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What Did It Mean To Purchase Stocks On Margin
When you purchase stocks on margin, you are borrowing money from your broker to buy more shares than you could afford with the cash you have on hand. The margin requirement is the percentage of the purchase price that you must pay for with cash. For example, if the margin requirement is 50%, you must […]
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13 Min
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What Does It Mean To Take Profits In Stocks
When you invest in the stock market, you’re hoping to make a profit. But what does it mean to take profits in stocks? In short, taking profits means selling your stocks at a higher price than you paid for them. This can be a great way to make money in the stock market, but it’s […]
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19 Min
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How You Lose Money In Stocks
There are a number of ways in which you can lose money when investing in stocks. In some cases, you may lose money because the stock price falls, and in other cases, you may lose money because the company goes bankrupt. Here are some of the most common ways in which you can lose money […]
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17 Min
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What Is Buying Stocks On Margin
When you buy stocks on margin, you’re borrowing money from your broker to purchase shares. The broker then charges you interest on the loan, and requires you to maintain a certain level of equity in your account. Margin buying can be a great way to increase your purchasing power and potentially earn higher returns. But […]
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22 Min
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What Does It Mean To Use Margin In Stocks
When you invest in the stock market, you may use margin to increase your potential profits. Margin is a loan from your broker that allows you to purchase more stock than you could with the cash you have on hand. Your broker may lend you up to 50% or even 100% of the purchase price […]
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18 Min
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What Is Sell Short In Stocks
When you sell a stock short, you borrow shares from someone else and sell them, with the hope of buying them back at a lower price and returning them to the lender. If the stock price falls, you make a profit. If the stock price rises, you lose money. Shorting a stock is a way […]
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14 Min
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What Is Buying Puts In Stocks
Buying puts in stocks is a strategy that is used to protect an investment from a potential decline in value. When you buy a put, you are purchasing the right to sell a particular stock at a specific price within a specific time frame. This can provide you with some protection if the stock declines […]
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16 Min
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