Lyft, Inc. (LYFT) shares rose more than 8% during Wednesday’s session after management said that the coronavirus had little impact on its business thus far. JPMorgan analyst Doug Anmuth called shares “extremely compelling” following the comments from Lyft, noting the company’s strong fundamentals. The analyst maintained an Overweight rating on the stock due to increasing…
Charts are a technical trader’s portal to the markets. With so many advances in analysis platforms, traders are able to view a tremendous assortment of market information. But with so much data available, it’s important to create well-designed charts that will enhance, not hinder, your market analysis. The faster you can interpret market information, the faster…
Real estate investment trusts (REITs) are a popular way for investors to own income-generating real estate without having to buy or manage property. Investors like REITs for their generous income streams. To qualify as a REIT, the trust must distribute at least 90% of its taxable income to shareholders. In turn, REITs typically don’t pay…
What Is an Experience Rating? An experience rating is the amount of loss that an insured party experiences compared to the amount of loss that similar insured parties have. Experience rating is most commonly associated with workers’ compensation insurance. It is used to calculate the experience modification factor. Key Takeaways Insurance experience ratings are losses…
What Is a Discount Margin—DM? A discount margin (DM) is the average expected return of a floating-rate security (typically a bond) that’s earned in addition to the index underlying, or reference rate of, the security. The size of the discount margin depends on the price of the floating- or variable-rate security. The return of floating-rate…
Hedge funds are pooled investments that use a variety of strategies in an effort to generate outsized profits for their investors. The hedge fund manager decides what to buy and sell, and there are few restrictions on their choices. Assets held in the fund can include stocks, bonds, derivatives, commodities, and currencies, among other choices….
What Is a Bed and Breakfast Deal? In investing, a bed and breakfast deal is a practice in the United Kingdom whereby the holder of a security sells it at the end of the day on the last day of the financial year and buys it back the next morning. The purpose of a bed…
What Is a Feeder Fund? A feeder fund is one of several sub-funds that put all of their investment capital into an overarching umbrella fund, known as a master fund, for which a single investment advisor handles all portfolio investments and trading. This two-tiered investment structure of a feeder fund and a master fund is…
What Is Detection Risk? Detection risk is the chance that an auditor will fail to find material misstatements that exist in an entity’s financial statements. These misstatements may be due to either fraud or error. Auditors make use of audit procedures to detect these misstatements. However, because of the nature of audit procedures, some detection risk…