What is a dividend?

Dividend is the portion of a company's profit that it may decide to pay out to shareholders. A dividend is paid along with any income from the company's share value, considered as "rewards" to shareholders for holding shares.

Companies in certain areas have a reputation for dividend payouts. This is more commonly seen in well-established companies because they do not have to reinvest all the profits in their business segment. As a result, companies can pay special dividends once, or pay periodically, such as quarterly or annually.

Regular dividend payout is a significant advantage of popular stocks; common stocks can do the same thing. However, unlike payments for bond interest rate, dividend payout is not guaranteed. Companies can cut down and even stop paying dividends when they experience a challenging economic period.

What are the differences between a closed fund and an open one?

The dividend ratio is the percentage that a company pays annually for a share per USD you invest. For example, one company has a dividend ratio of 7%, and you hold $10,000 of their shares. So, each year, you receive a $700 payout which equals $175 quarterly.

It is necessary to note that the company pays dividends based on the number of shares held by investors, not the value of such shares. Therefore, the dividend ratio changes according to the current share price. Recently, there have been many stocks research tools listing dividend ratio; however, you can make your own calculation.

Dividend ratio calculation formula:

The case in which the dividend ratio of a share is not listed in percentage is widespread, or sometimes investors want to make their own calculation to get the latest figures. In that case, use the dividend ratio calculation formula. Then, you only need to divide the annual dividend paid for each share by its price.

Dividend ratio = Annual dividend paid for each share / Price of each share

For example, one company pays a $5 dividend for each share, and their current price is

$150. So, the dividend ratio is 3.33%.

What is a Bull Market?

A bull market, also referred to as upward duration, is a long-lasting period in the market. When the price of stocks tends to go up, no accurate statistics or measurements can clearly describe whether we are in an uptrend market. However, a commonly accepted principle is that a share's price increases by at least 20% compared with its latest lows, along with signs showing that it will continue to rise.

This term is commonly applied to the stock market. They are measured by major indicators: S&P 500, Nasdaq, and Dow Jones Industrial Average. However, the bull market can occur in any buyable and sellable asset, from individual shares to other assets like real estates, bonds, and currencies.

Differences between Bull Market and Bear Market

A bull market is contrary to a bear market which occurs when a share's price goes down.

This interpretation can help distinguish between the different terminologies: when incited, a bull will prove to be ferocious, attacking with an ultra-fast speed.  Therefore, this animal symbolises a strongly increasing stock market.

On the contrary, bears are commonly known for their hibernating habit. Therefore, a bear market is a perfect metaphor for a sliding or sluggish stock market.

Despite not always happening concurrently, bull markets usually reflect a "going up" period of the general economy, especially the growth period during a business cycle. 

What is a price target?

A price target is the forecast of analysts or financial advisors about the future value of a particular financial product, including stocks, shares, bonds, futures, commodities, ETF investment funds and other complicated investment products.

There is no way to know for certain the value that a share will be traded in the future. Therefore, a price target is only a calculated guess. When an analyst increases the price target for a share, they usually expect that its price will go up. On the contrary, lowering the price target can mean that the analyst predicts that the share price will decrease.

For individual traders, who may develop their own price target for the asset they are trading, a price target is a position they look at to exit the order when the initial expected price of the trade has been accepted.

Price target is an organic factor in financial analysis; this value can vary over time when there is new information. Analysts often announce their price target in the research report of a specific company, along with recommendations on buying, selling, or holding shares of that company. In addition, the price target of a share is usually quoted in financial news media.

What are Fractional Shares?

At present, there is a new way to buy a share, which allows you to pay nearly no attention to its price.

Such brokers as Charles Schwab Corp. and Robinhood have provided fractional shares, which allow people to invest as little as $1, or even 1 cent in a company.

This advanced product has made the concept of ownership completely different. Instead of buying a fixed portion of a company at a certain price, you can invest a specific amount of money and own a part of the company. You receive all the benefits with a corresponding rate if the share price goes up and, of course, accept risks of loss if it goes down.

Typical examples of fractional shares

You can not afford to buy a share of Amazon, trading at about $3,125 in February 2010? So why don't you invest $100? An increase of 5% in the share price to $3,281 will take your holding to $105. Or you can get a small portion of Alphabet Inc., Google's parent company, instead of paying approximately $1,450 for a share.

What is Ichimoku Kinko Hyo?

Ichimoku Kinko Hyo or abbreviated as Ichimoku, is not an indicator. Instead, it is a trading system built on candlesticks to improve the accuracy of price volatility forecasts.

Ichimoku was developed in 1926 by Goichi Hosoda, a financial inventor and researcher.

What Is Alligator Indicator?

Alligator is one of the indicators in the technical analysis indicator suite by Bill Williams. This tool indicates which stage the market behaviours are in or the starting and ending points of a stage. This led Bill Williams to think of an alligator's hunting process and apply it to financial markets, thus inventing the Alligator indicator.

What is the difference between a closed-end fund and an open-ended fund?

Besides common types of investment like shares, securities, and bonds, the type of investment related to open and closed funds is a channel that is developing and attracting investors' interest.

Open fund:

It is a collective investment fund funded by many investors with the same goals. In addition, an open fund is managed by a Fund Management Company. This is an indirect form of investment. It is formed with unlimited time and source of funds. Buying/selling trades of investors are executed periodically based on the fund's net asset value. Profits from this type of investment are differences between buying and selling prices.

Closed fund:

Compared with an open fund, a closed one will be restricted to a fixed number in the primary market. Its operation time will be limited and will be agreed upon when the fund is formed. A closed fund certificate owner shall not sell the certificate to the management company. However, investors can trade with each other in the primary market.

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