Non-cyclical stocks weathered last month’s pandemic-induced selling onslaught better than most other sectors as investors sought refuge in the group amid ongoing uncertainty gripping global financial markets. Although the segment shed 6% in March, its losses were about half those of the broader market. What’s more, consumer staple stocks have been at the forefront of…
If you want to become a broker-dealeryou can either join an existing firm or start your own company. If you choose to work for someone, you may be investing in a management team in which you know very little. Although the workload will likely be more manageable, you’ll have less control over the organization and…
What Are Trading Assets? Trading assets are a collection of securities held by a firm for the purpose of reselling for a profit. They are recorded as a separate account from the investment portfolio and may include U.S. Treasury securities, mortgage-backed securities, foreign exchange rate contracts, and interest rate contracts. Trading assets include those positions…
Shares of ecommerce pet product supplier Chewy, Inc. (BLOW) nearly doubled in just two weeks in March, with investors jumping on board after the closing of pet stores and other chains catering to our four-legged friends. The stock is trading lower after Thursday’s earnings release, despite in-line fourth quarter 2019 revenue and first quarter revenue…
What Is a Tombstone? A tombstone is a written advertisement of a public offering placed by investment bankers who are underwriting the issue. It gives basic details about the issue and lists each of the underwriting groups involved in the deal. The tombstone provides investors with some general information and directs the prospective investors to…
What Is a Merkle Root? A Merkle root is the hash of all the hashes of all the transactions that are part of a block in a blockchain network. Key Takeaways A Merkle root is a simple mathematical way to verify the data on a Merkle tree. Merkle roots are used in cryptocurrency to make…
What Is Compulsory Insurance? Compulsory insurance is any type of insurance an individual or business is legally required to buy. Compulsory insurance is mandatory for individuals and businesses that want to engage in certain financially risky activities, such as operating an automobile or operating a business with employees. Compulsory insurance is supposed to protect accident…
Zoom Video Communications, Inc. (ZM) stock has dropped like a rock this week, falling 17% after testing the all-time high at $165 on Monday. Bugs, flaws, and hacking vulnerabilities have come to light as use of the video conferencing software has skyrocketed due to the coronavirus pandemic, exposing Zoom’s rapidly expanding customer base. Those disclosures…
What Is a Detective Control? Detective control is an accounting term that refers to a type of internal control intended to find problems within a company’s processes once they have occurred. Detective controls may be employed in accordance with many different goals, such as quality controlfraud prevention, and legal compliance. One example of a detective…