How to Effectively Use Dollar Cost Averaging

We’ve been talking about different investment strategies like trend trading and the buy low and sell high strategy on previous articles. One strategy that has been mentioned last time was Dollar Cost Averaging. But what really is DCA? How effective is this strategy in improving investment profitability? In this article, we are going to talk … More How to Effectively Use Dollar Cost Averaging

What is a Stock Split and How Does it Affect a Company

What is a stock split? A stock split or stock divide is a way of increasing the outstanding number of shares in a company. It works by dividing the number of existing shares of a company into multiple shares. The most common split ratios are 2-for-1 and 3-for-1. This means that a stockholder would have … More What is a Stock Split and How Does it Affect a Company

What are Market Makers and Their Role in the Financial Market

Throughout the day, hundreds to thousands of traders buy and sell securities in the public exchange. These transactions are usually executed within a few seconds. Have you ever wondered how these transactions are done in such a short time? Whenever a transaction is executed, there must be someone on the other end that is willing … More What are Market Makers and Their Role in the Financial Market

Company 101: A Guide to an Initial Public Offering

A lot of privately owned companies had gone public ever since the start of the stock market exchange. We can’t deny the numerous advantages that come with becoming a public company – from generating additional cash to indirectly promoting the brand. We have recently talked about the 5 common reasons why companies decide to go … More Company 101: A Guide to an Initial Public Offering

Reinvesting Through Dividend Reinvestment Plan

People invest in stocks due to varying reasons. Some are trying to make money from capital gains, while some prefer a steady income through dividend stocks. There are also investors who invest in dividend-paying stocks, but opt to automatically reinvest their dividends in order to purchase more stocks and presumably earn more dividends in the … More Reinvesting Through Dividend Reinvestment Plan

Different Types of Stocks and their Classifications

It is ideal for investors to diversify their portfolio to other types of investments in order to hedge against the risk of losing. Diversification is very essential because nobody can predict the market. There would always be a time when a given investment will experience some losses, thus investing in different securities can help safeguard … More Different Types of Stocks and their Classifications