A call option provides a way to temporarily speculate on a business’ successes with minimal capital outlay when compared to becoming a direct stockholder. A call option’s current value is primarily driven by time elapsed, leading to the options’ expiration, and price fluctuation of the underlying stock that the option is written for. Call the […]
What Is a Put Option? A put option is a contract that gives the holder the right to sell a specific amount of an asset at a predetermined price within a set period of time. Let’s discuss this price, referred to as a strike price. Strike Price A strike price is a price and point […]
The Ability to Raise Capital Opportunities for The Public Liquidity Imagine a world where the only way to participate in the success of a business requires a large financial expenditure, where the expenditure could not be reclaimed for many years. This would stifle business ventures and dissuade investment. Pricing Consensus If you’ve ever purchased a […]
Credit for this line of thinking goes entirely to my dear friend Stephen. Tariffs have been a policy tool used to protect domestic industries from foreign competition. Proponents argue that they create jobs, promote, and protect struggling economic sectors. The Austrian school of economic thought views tariffs as a flawed and harmful policy tool that […]
The Time Value of Money is a commonly used financial concept that explains how the value of money fluctuates over time. Specifically used in financial calculations, it is based on the idea that a certain amount of time or money today is worth more than the same amount in the future due to its earning […]
Discounted Cash Flow (DCF) analysis is a method used to estimate the value of an investment based on its expected future cash flows. The principle behind DCF is that money today is worth more than the same amount in the future due to the time value of money. To perform a DCF, you do the […]
Best execution, in the context of brokerage transactions, refers to the obligation of brokers to execute client orders in a way that maximizes the value of the trade for the client. This concept ensures that brokers prioritize the client’s interests by striving to obtain the best possible price and overall outcome when executing a trade. […]
Understanding Tax-Adjusted Yield in Municipal Securities Municipal securities (munis) are debt instruments issued by government entities to fund public projects. A key advantage of munis is that their interest income is often exempt from federal income tax, and sometimes from state and local taxes. The tax-adjusted yield helps investors compare the after-tax return of municipal […]
