Have you ever initiated an investment that provided you with an abnormal return? An abnormal return results when an asset price surpasses expectations of what the asset price should be. For example, let’s say that you wanted to purchase stock in Apple at $400 per share and that you expect the share to be worth $450 each in three months. If the share price rises to $475 per share, then you would have achieved an abnormal return of $25 per share. This was the return that you experienced that was ...
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Author: Madison Jardine
Value Stock
Try answering this question: How do I know if I should invest in the stock of a specific company? Regardless of whether you are a novice or seasoned investor, this question is probably one of the most frequently asked questions in stock market investing history. Contrary to popular belief, the answer to question is relatively simple. It is the same thing that you do when you decide to purchase a house, car, cloths, or anything else. Do you know what it is yet? The answer is find value.
That was...
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What is Bid and Ask Price
The bid price and ask price are two of the most quoted, yet at the same time least understood, share price metrics available to stock market investors. Together the two price metrics give birth to a more complex metric called the bid-ask spread, but for now the focus will be on the basic price metrics.
In the context of stock markets, the bid price is the highest share price that a buyer is willing to pay for stock of a corporation at a specific time. The prevailing bid price is also the price...
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