Explosive Play

What is Options?

An option is a type of financial instrument classed as derivatives because they derive their value from an underlying asset. An option gives its holder the right, but not the obligation, to buy or to sell some asset (In return for granting the option, the seller collects a payment (the premium) from the buyer. Granting [...]

What are Stock Dividends?

A stock dividend is a dividend paid as additional shares of stock rather than cash. A stock dividend to common stock dividend owners distributes additional stock in the company to the common stock shareholders. Such dividends are evenly distributed to the shareholders depending on their portion of ownership in the corporation. Such distributions maintain their [...]

What are Penny Stocks?

Penny stocks are shares that trade from a fraction of a penny to $5. They are usually (but not necessarily) trade for low valuations (P/E) and has great volatility and carry more risk. Penny stocks have the potential to give exceptional returns in a very short time for those daring, high-risk taking, knowledgeable and well-informed [...]

Mutual and Hedge Funds

Investing in Mutual Funds: Mutual funds are an investment that allows a group of investors to pool their money and hire a portfolio manager. The manager invests this money (the fund’s assets) in stocks, bonds or other investment securities (or a combination of stocks, bonds and securities). The fund manager then continues to buy and [...]

ETFs

Exchange Traded Funds (ETFs) A security that tracks an index a commodity or a basket of assets like an index fund, but trades like a stock on an exchange is known as Exchange Traded Funds. ETFs experience price changes throughout the day as they are bought and sold. Exchange-traded funds (ETFs) can be a valuable [...]