Picking stocks can feel intimidating. There are 11 stock market sectors, 69 distinct industries and thousands of publicly traded companies across the major U.S. exchanges. For a beginner, it can be hard to know how to choose stocks that are... Read more
What is the US Securities and Exchange Commission? Key takeaways As a federal agency established by the US Congress, the Securities and Exchange Commission （SEC） is responsible for regulating the securities markets and is the top agency in the US... Read more
What is margin trading? Key Points Margin trading involves using the securities or cash in an account as collateral to borrow funds or securities from a broker for trading. Margin trading uses leverage, which amplifies both gains and losses... Read more
What is the cost of sinking and tapering? What is the cost of sinking? Key Points Overview Sunken cost refers to costs that have been incurred and cannot be recovered. Sunken costs do not affect current behavior or future decisions.... Read more
Five behavioral biases that affect investors Core points Behavioral finance research aims to reveal irrational behavior and decision-making patterns in financial markets. According to behavioral finance, investors can easily make suboptimal decisions because psychological effects complicate our decisions. The... Read more
What is ESG investing? Core points ESG investment takes into account the financial return and the environmental, social and corporate governance factors of the enterprise. ESG investment is becoming an important key word in the capital market Some studies... Read more
What are opportunity costs? Core points opportunity cost refers to the value of a second-best choice abandoned after making the best choice. The two prerequisites for the existence of 、opportunity cost are the multi-purpose and scarcity of resources. in life,... Read more
What is an investment portfolio? Key Points The essence of a portfolio is not to put all your eggs in one basket, thereby diversifying risk. Portfolios have three characteristics: diversification, weak correlation, and personalization. When building a portfolio, factors such... Read more
Key Points The Dow Jones Industrial Average is the oldest stock index in American history, currently consisting of 30 component stocks. Characteristics of the Dow Jones include: relatively concentrated, weighted by stock prices of component stocks. From 1990 to... Read more
Key Points of S&P 500 Index The s&p 500 index is one of the three major indices reflecting the overall situation of the usa stock market. The characteristics of the s&p 500 index are: diversified enough, market cap weighted, and... Read more
Key Points The NASDAQ is an index that reflects changes in the Nasdaq stock market. The characteristics of the NASDAQ include the widest coverage and the most components. Since its establishment in February 1971, by the end of 2020,... Read more
Key Points Dividend is the interest on stocks, whether and how much dividend is issued is related to the company’s operation situation and dividend policy, usually distributed quarterly, semi-annually, annually, and may also issue special dividends at any time. The... Read more