Tag: Buying

Short (or Short Position) definition explanation

What is Short (or Short Position)?
1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.

2. In the context of options, it is the sale (also known as “”writing””) of an options contract.

Opposite of “”long (or long position)””. Read more for examples and further explanation including related video clips and also comments
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Flipping definition explanation

What is Flipping?
A type of real estate investment strategy in which an investor purchases properties with the goal of reselling them for a profit. Profit is generated either through the price appreciation that occurs as a result of a hot housing market and/or from renovations and capital improvements. Investors who employ these strategies face the risk of price depreciation in bad housing markets. Read more for examples and further explanation including related video clips and also comments
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Net Asset Value Per Share – NAVPS definition explanation

What is Net Asset Value Per Share – NAVPS?
An expression for net asset value that represents a fund’s (mutual, exchange-traded, and closed-end) or a company’s value per share. It is calculated by dividing the total net asset value of the fund or company by the number of shares outstanding.

Also referred to as “”book value per share””.

Calculated as: Read more for examples and further explanation including related video clips and also comments
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Diversification definition explanation

What is Diversification?
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others. Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated. Read more for examples and further explanation including related video clips and also comments
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Dogs Of The Dow definition explanation

What is Dogs Of The Dow?
An investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The portfolio should be adjusted at the beginning of each year to include the 10 highest yielding stocks. Read more for examples and further explanation including related video clips and also comments
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Discretionary Order definition explanation

What is Discretionary Order?
An order giving a broker the ability to decide when to buy/sell securities at the best possible price for the customer. Some discretionary orders place restrictive terms to limit the amount of discretion the broker has. Read more for examples and further explanation including related video clips and also comments
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Credit Analysis definition explanation

What is Credit Analysis?
A type of analysis an investor or bond portfolio manager performs on companies or other debt issuing entities encompassing the entity’s ability to meet its debt obligations. The credit analysis seeks to identify the appropriate level of default risk associated with investing in that particular entity. Read more for examples and further explanation including related video clips and also comments
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