Vocabulary

Trade: To buy or sell a stock, bond, or option. Margin: The use of borrowed funds to purchase a stock; the (security) capital required to adequately pay for the risk on an option transaction. Volume: The total number of shares traded in a particular time period on a specific stock. Bull market: A market with […]

Bull and Bear Market

Bull vs. Bear The terms “bull market” and “bear market” describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The names perhaps correspond to the fact that a bull attacks by lifting its horns upward, while a bear strikes with […]

Valuation

When valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.  These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & acquisitions (M&A), leveraged buyouts (LBO), and […]