Trading Markets

Understanding of Diversification. How does it work?

Understanding of Diversification. How Does It Work?

Diversification is a risk management strategy of allocating portfolio resources or capital to a mix of different investments. Rather than putting money in a single firm, industry, sector, or asset class, investors diversify their investments across a range of different firms. A diversified portfolio contains a wide variety of asset types and investments, which reduces …

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Investment Goals

Difference between Low-Risk vs. High-Risk investments

We all know that all investments involve some degree of risk, and risk is a fundamental part of any investment. Moreover, none of the investment is meaningful without it. The amount of risk you take should be a personal decision and can be affected by several things.   Understanding of Risk   To some extent, …

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Understanding of Volume Weighted Average Price (VWAP)

Volume weighted average price or VWAP is a widely used benchmark that tells us the average stock price weighted by the total trading volume. Notably, this measure helps investors and analysts evaluate the current price of a stock. Moreover, with the help of VWAP, traders can determine whether it is relatively overpriced or underpriced compared …

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 Depreciation and Amortization: What’s the difference?

Depreciation and Amortization: What’s the Difference?

When a firm acquires assets, those assets usually come at a cost. As we know, most assets don’t last forever. Therefore, their cost needs to be proportionately expensed based on the time they are used. Amortization and depreciation are methods of prorating the cost of business assets over their useful life. The expense amounts are …

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Elon Musk, Tesla, Bitcoin

Elon Musk and His Opinion On Bitcoin: Why it Matters?

In mid-May 2021, Bitcoin experienced a free fall. The crypto king fell below $40,000 for the first time in more than three months. On a single day, it saw a 30% drop before rebounding. That’s all because of Elon Musk’s Bitcoin statements on Twitter. He announced that Tesla no longer accepts Bitcoin payments. And it’s …

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