What’s a market-wide trading halt?

A market-wide trading halt is like a timeout. It gives everybody a chance to catch their breath and may help slow the stampede of a selloff. Halts are issued by US equities, options, and futures exchanges. There are three circuit breakers that can trigger market-wide halts in the US: Level 1: The S&P 500 drops […]

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What’s a circuit breaker?

After the 1987 stock market crash, known as “Black Monday,” the US Securities and Exchange Commission adopted market-wide circuit breakers, or certain thresholds at which trading is halted for a pre-defined period of time. These circuit breakers were updated in 2012 in order to make them more meaningful in today’s high speed electronic markets.  Market-wide […]

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What is a volatile market?

A volatile market is often characterized by extreme price fluctuations and widespread uncertainty. Nobody knows what to expect, and fear—or euphoria—can grip investors. During these moments, it can be tough to sit still. Your investment portfolio may seemingly plummet—or soar—based on the smallest whisper: a rumor that the Fed might change interest rates, that the […]

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Robinhood has announced changes to its app and the hiring of an options education specialist after a young user’s suicide

Robinhood, a commission-free trading app, said Friday it is making changes after a 20-year-old customer died by suicide thinking he incurred losses of over $730,000. Co-founders Vlad Tenev and Baiju Bhatt said they’re expanding options-trading educational content and hiring a specialist to further assist users. Robinhood is also working to improve messaging to customers about […]

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What are value and growth stocks?

Value and growth stocks are two different styles of stock. Growth stocks are anticipated to grow at a rate above the average for the market. Value stocks are those that tend to trade at a lower price relative to their fundamentals. To determine whether a stock is underpriced, market analysts look at a company’s fundamentals […]

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What are small-, mid-, and large-cap stocks?

Small-, mid- and large-cap stocks are ways to categorize market capitalization, which is the total value of all the shares of a company’s stock. Very large companies like Apple and Alphabet (the holding company for Google) are considered large-cap stocks with market capitalizations starting at $10 billion. Stocks from relatively smaller companies are considered mid-cap […]

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Can you sell shares of stock that you do not own?

Yes, when you sell shares of a stock that you do not own, this is referred to as a short sale. You borrow the shares from a lender (like a broker-dealer) and sell in the open market with proceeds from the sale credited to your account. Eventually you must purchase the same number of shares […]

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What are stock quotes?

Stock quotes provide pricing information for a particular stock including the bid and ask, last-traded price, and volume of shares traded. Stock quotes show a moment in time, meaning what the stock is trading for when the stock market is open (which can be moving up or down at any given time), and the last […]

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