Stock splits increase the number of shares, proportionally decreasing the price per share
Stock splits increase the number of shares, proportionally decreasing the price per share
What a dividend yield measures — annual dividend divided by share price
Dividend yield measures the percentage of annual dividend relative to the current share price
How does the concept of the Money Multiplier effect work in fractional reserve banking systems to amplify the money supply?
Money Multiplier = 1 / Reserve Ratio; banks lend fraction of deposits, increasing money supply
What an iron condor profits from — the stock staying within a range
An iron condor profits from minimal stock price movement within the defined strike price range
What anchoring does in investing — the purchase price biases your sell decision
Anchoring bias causes investors to base sell decisions on initial purchase price rather than current market value
What raising interest rates does — makes borrowing more expensive, slows spending and inflation
Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation
What earnings per share (EPS) measures — net income divided by shares outstanding
EPS measures net income per outstanding share
Educational content, not financial advice.
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