A company's debt-to-equity (D/E) ratio is a measure of its financial leverage, comparing its total debt to its shareholders' equity. This ratio indicates the proportion of financing that comes from debt versus equity. The impact of…
A junk bond, also known as a high-yield bond, is a type of debt security issued by companies or entities that are considered to have a higher risk of default compared to investment-grade bonds. These bonds…
Quantitative tightening (QT) refers to the process of reducing the size of a central bank's balance sheet by selling securities it had previously purchased during quantitative easing (QE) measures. The impact of QT on the stock…
Stock market bubble refers to a situation in which stock prices are driven far beyond their intrinsic value by speculative trading, leading to a rapid increase in asset prices followed by a sharp decline. Bubbles are…
Company's brand reputation holds substantial sway over its stock performance, with several interconnected factors driving this relationship. Firstly, a positive brand reputation signals consumer trust and favorability towards the company's products or services, translating into increased…
Sector rotation is an investment strategy employed by traders and investors to capitalize on the cyclical movements of different sectors within the stock market. It involves shifting investments from one sector to another based on changing…
The yield curve is a graphical representation of the relationship between the yields (interest rates) and the maturities of bonds with similar credit quality but different maturity dates. Typically, the yield curve plots the yields of…
Stock price averaging, also known as dollar-cost averaging, is an investment strategy where an investor divides the total amount to be invested across periodic purchases of a target asset, such as stocks, over time. This approach…
A stock market crash refers to a sudden and severe decline in the prices of stocks traded on a stock exchange, leading to a significant loss of investor wealth. Stock market crashes are characterized by a…
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…