Guide to High-Risk Stocks
High-risk stocks are equity investments where investors can experience significant losses, if not all, their money. Generally, high-risk stocks tend to be from cyclical, volatile industries or be newer, untested…
Margin Trading Explained Plus Advantages & Disadvantages
What Is Margin? The margin is the collateral that an investor has to deposit with their broker or exchange to cover the credit risk the holder poses for the broker…
Collateral Definition, Its Types, & Examples
What Is Collateral? Collateral in the financial world is a valuable asset that a borrower pledges as security for a loan. For example, when a homebuyer obtains a mortgage, the…
What Is a Bear Market? Definition and How to Invest During One
When assets plummet 20% from recent highs, Bear markets are among the scariest market events you’ll encounter. But long-term investors can stay the course. The words “bear market” strike fear…
Shareholder (Stockholder): Definition, Rights, and Types
What Is a Shareholder? A shareholder is a person, company, or institution that owns at least one share of a company’s stock or in a mutual fund. Shareholders essentially own…
Unrealized Gains & Losses, Explained
What Are Unrealized Gains and Losses? Unrealized gains and losses are the changes in the value of an investment, such as stocks or bonds, that have occurred since an investor…
What Are Penny Stocks & How Do They Work?
Penny stocks are shares of small companies that trade for less than $5 per share. They are highly speculative investments, meaning they carry a high risk. Usually, traders looking for…
What Is Initial Margin? Examples and Minimums
When an investor buys a security using a margin account, the initial margin or initial margin requirement is how much of the purchase price – represented as a percentage –…
Mid-Cap Stocks
Mid-cap stocks are shares of companies with a total market capitalization range of about $2 billion to $10 billion. Along with large-cap and small-cap stocks, mid-cap stocks are one of…
What Is The Stock Market? How Does It Work?
The stock market is a constellation of exchanges where securities like stocks and bonds are bought and sold. In the United States, “the stock market” and “Wall Street” can refer…