May 21, 2011 | Investment Basics
On May 12, 2011, the Wall Street Journal published an article on the Galleon Verdict, the guilty verdict of hedge fund manager Raj Rajaratnam (henceforth referred to as “Raj”). A hedge fund is an unregulated private investment partnership limited to...
Mar 5, 2011 | Stock Investing
Oh no, not another Bernie article! Sorry folks, I couldn’t resist. I have such an interest in this story on so many levels. Madoff was claiming to use a strategy related to covered call writing. The Madoff whistleblower, Harry Markopolos, was involved with a...
Jan 30, 2011 | Investment Basics
Short selling are transactions in which investors sell borrowed securities in anticipation of a price decline and are then required to return an equal number of shares at some point in the future. Let’s assume you are bearish on a stock that is currently trading at...
Jan 15, 2011 | Investment Basics
Quick! Name the four largest US Stock Exchanges. The New York Stock Exchange, the Nasdaq Exchange, uhhhhhhhhh. There are more? Okay can’t answer that one, how about this question Mr. know-it-all stock investor: The heart and soul of Wall Street is located where?...
Jan 1, 2011 | Option Trading Basics
(I am writing this article because I have had feedback in the past from investors who reject covered call writing based solely on the theoretical risk-rewrad profile.) A risk reward profile is a chart of the theoretical maximum profit or loss a particular investment...