Interest rate hikes have a significant impact on the stock market, influencing various aspects of investor behavior and market dynamics. When central banks raise interest rates, borrowing becomes more expensive for businesses, leading to reduced investment…
A leveraged exchange-traded fund (ETF) is a financial instrument that aims to amplify the returns of an underlying index or asset class through the use of financial derivatives and debt. These ETFs use leverage, typically borrowing…
Purchasing Managers' Index (PMI) is a leading economic indicator that measures the economic health of the manufacturing sector. It is based on survey responses from purchasing managers at manufacturing firms and provides insight into factors such…
Market capitalization-weighted indexes, also known as cap-weighted or market-cap weighted indexes, are stock market indices where the individual components are weighted according to their market capitalization. Market capitalization (market cap) is calculated by multiplying the current…
A company's earnings guidance significantly influences its stock price by shaping investor expectations and confidence. Positive guidance exceeding forecasts often boosts sentiment, leading to stock price increases, while disappointments can trigger declines. Reliable guidance enhances investor…
Form 10-K is a comprehensive report that provides a detailed overview of a company's financial performance, governance, management discussions, risks, and other key information that can help investors make informed decisions. A book with this title…
A company's competitive position plays a fundamental role in shaping its stock value, exerting influence through various channels. Firstly, it directly impacts revenue growth potential. A company with a strong competitive position typically possesses the ability…
Short squeeze is a market phenomenon that occurs when there is a rapid increase in the price of a stock or other financial asset that has been heavily shorted. Short selling is a trading strategy where…
The global supply chain exerts a significant influence on stock prices through various interconnected factors. Firstly, it affects a company's Cost of Goods Sold (COGS) as businesses rely on sourcing materials and components from around the…
Stock market rally refers to a sustained increase in the prices of stocks over a period of time, typically characterized by optimism, increased buying activity, and positive sentiment among investors. During a rally, stock prices tend…