The risk of holding on to dropping shares

We know when the shares drop; we should buy because it is profitable. When shares dropping
mean to the share is undervalued. You can hope your shares rise then you should sell with
higher price. You can get fantastic return when shares dropping.
On the other hand, the investor still holds the dropping shares. They believe the stock
will [...]

How futures are traded?

The futures are derivative that uses to protect investor from investment risk. It could
protect financial asset and commodity. Investor can buys futures to protect their stock,
bond, index, etc. On the other hand, farmer and trader could buy futures to protect their
commodity. Unlike option, this derivative is obligation. The investor must exercise their
futures.
The investor can buys [...]

How the world richest go rich

You must know Warren Buffet, Bill Gates, Roman Abramowitz, Larry Page, and Sergey Brain. There are the richest men at the world. They have million-dollar asset. We wonder at their success. We often dream become one of the richest men.
Why they could success? Somebody will answer they have work hard. They work 24/7. They do [...]

How the stock markets work?

When we buy a stock, we could come to stock market. There are some investments like stock, bond, index, derivatives, etc. You could buy direct or through broker with certain price. If we see the stock market, we must be confused. We can see the man watch the electronic board, buzz about, shout to others, [...]

What is a preferred stock?

You will find a security which different from each other. This investment is like a hybrid between bond and equity. It gives you dividend but you have no right to vote. Therefore, you cannot participate to decide corporate steps. There is an exception on a case. If company skips the dividend, the preferred stock holder [...]

Alternatives EE Series Bond

The first saving bond in US is EE Series. EE Series seems like zero coupon bond or accrual income. You cannot receive coupon periodically or semi annually. You must wait until this bond mature. Alternatively, you could sell the bond and get capital gain in the middle of maturity with condition the temporary price is [...]

Brady Bond for Global Investor

Brady bond is a kind of bond that swapped for an out standing loan to Less Development Countries (LDC). Nicholas Brady (former US Treasury Secretary) found the Brady. This bond is securitization debt of LDC mean this bond guarantee from debt default. Brady constructs the swap for default Latin America Treasury bond.
In 1980’s, the volume [...]