We can think of the circuit breaker mechanism as a "fuse". When the market fluctuates too violently, the fuse will melt and break, suspending trading activities in the market temporarily. Trading will resume after a while.
Currently, the United States represents the most significant stock market globally, with its overall market value accounting for more than 50% of the global stock market and hosting the world's most important companies.
Stock buybacks are a very popular method among corporations. If executed properly, they can benefit shareholder equity, but if mismanaged, they can also lead to company difficulties. Warren Buffett, in his 2011 letter to shareholders, mentioned that Berkshire Hathaway would only repurchase shares under two conditions:
The Buffett Indicator is a renowned metric used to assess whether the current stock market is overheated or undervalued. It was highlighted by the legendary investor Warren Buffett in a 2001 interview with Forbes magazine. This indicator measures the ratio of the total market capitalization of the stock market to the Gross Domestic Product (GDP). Buffett pointed out that this ratio is the best indicator for determining whether the overall stock market is overvalued or undervalued. This indicator often appears in various media reports, especially when the figures are at extreme levels.
In U.S. stock trading rules, investors using cash trading accounts need to be aware of the Good Faith Violation and the 90-Day Trading Restriction rules. These rules are mainly in place to regulate the buying and selling of unsettled funds.
The 13F report (13 Filings or SEC Form 13F) is mandated by the SEC for investment institutions managing over $100 million, including mutual funds, hedge funds, pension funds, trust institutions, insurance companies, etc., to disclose their stock positions every quarter.
The short squeeze has surprised markets on many occasions. Learn more about what it is, its causes and the effects on traders.
DailyFX’s user-friendly and fully customizable earnings calendar is live and available for stock market traders interested in tracking upcoming quarterly reports of key companies worldwide.
Traders often use the shape of the yield curve as a leading indicator of the economy and a forecasting tool for equity performance. Here are four key yield curve regimes to know.
Bull and bear markets are two very different animals - in more than one way. The ability to discern whether you are in a bull market or a bear market is fundamental for traders and investors alike.