Options Expiration
If you have positions that are in the money, it's crucial that you monitor your account and communicate with Credence Global Bank on Expiration. There are a few choices if you have positions that are expiring in the money: You can close the option position. You can leave the position open. However, if it's in the money, […]
What are Investment Objectives and why do I have to choose one?
Industry regulations require brokerage firms to know their clients. Part of this process involves gathering information about your trading experience, your financial background (including net worth and annual income), and your investment objectives. An investment objective is your overall outlook on trading for your account. Credence Global Bank needs an accurate picture of your goals because we […]
Money Market Mutual Funds: An Introduction
Money market mutual funds (usually referred to as money market funds or money funds) invest in short-term, fixed-income securities, otherwise known as money market investments. By definition, money market investments mature in less than one year. Like other mutual funds, money market funds are pooled investments that allow investors to participate in a diversified portfolio […]
Money Market Mutual Funds: How To Invest
There are two basic types of money market funds, taxable and tax-free. Taxable money market funds can be further broken down into different categories, including: General-purpose funds that are available to all investors directly from sponsoring mutual fund companies Stockbroker-affiliated general-purpose funds, also available to all investors, but which are often provided as part of […]
Short Put Strategies
When selling puts with no intention of buying the stock, you want the puts you sell to expire worthless. This strategy has a limited profit potential if the stock remains above strike A at expiration, but substantial potential risk if the stock goes down. The reason some traders run this strategy is that there is […]
Fundamental Analysis Explained: Balance Sheets
Reading a balance sheet: Assets Balance sheets provide a snapshot of how the company's assets (the value a company takes in) are balanced out against its liabilities (what the company must pay out). When assets equal liabilities plus equity, that's when the statement is said to be in balance. Assets include company resources that are […]
Money Market Mutual Funds: Risks and Rewards
It’s easy to invest in a money market account. You can open an account and make deposits and withdrawals virtually any time you want. Your money is not tied up for any specific time period. Investment Strengths Check-writing and other privileges Money market funds typically offer such services as check-writing privileges and/or the ability to […]
Short Selling Explained: An Introduction
Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]
Fundamental Analysis Explained: Cash Flow Statements
The cash flow statement helps investors answer questions like: Is the company generating enough cash needed to fund growth? Is growth outpacing cash generation, requiring additional financing? Is the company generating enough cash to cover its short-term needs? In times of easy credit, companies may be able to patch over cash flow interruptions with interim […]
Short Selling Explained: Risks and Rewards
What is short selling, and what’s in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock’s price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn’t actually own the […]
