Skip to main content

Posts

Showing posts with the label investor

OTC stocks more difficult to trade and deposit

  Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...

All-cash, All-stock offer

An acquisition strategy known as an “all-cash, all-stock offer” requires the buyer to commit to purchasing all of the target company’s outstanding shares for a certain amount in cash. It is also characterized as buying all of a company’s outstanding shares from its shareholders in exchange for payment. All-cash, all-stock offers are typically taken into consideration as a strategy to complete an acquisition. This could be an excellent technique the acquiring corporation might use to make the transaction appear sweet and persuade shareholders who are on the fence to accept the sale by offering a premium above the cost at which the shares are now trading. So if it’s that case, if indeed the company was purchased at a premium, then shareholders of the target company could experience an increase in the value of their shares. Even when we talk about cash deals, a stock value for the target firm is discussed, and that value may be considerably higher than its current market price. Therefore,...

Market Trends

When we speak about market trends that actually refers to anything that alerts the market your corporation operates in.  So, there’s a good chance that different market trends are having an impact on your company’s operations simultaneously at this very moment. This imposes the following question- why would it be necessary to stay up-to-date on market trends and developments? That’s the way you evolve and remain competitive.  Maybe you can’t take a race with the velocity of change connected with technology or legislation, but there is one thing you can do - take actions that can help you to expand in parallel with all those changes. So, there is no need for spending hours a week tracking trends research. It’s enough just to comprehend the diverse market trends which can help you identify what is actually appropriate for your company. This kind of in-depth research enables you to quickly adjust to dynamic market conditions and maintain your competitiveness. According to this an...

The reasons why you should hold Penny Stocks

There are many prejudices about Penny Stocks and why should anyone have them in their portfolio. As defined by the U.S. Securities and Exchange Commission, penny stock is any publicly traded firm’s share that trades below $5 per share.   These types of stocks are inexpensive, allowing you to invest without committing large sums of money, which is advantageous for those on a limited budget.   That also implies if the business in that you have just invested fails, you won't suffer a significant loss per share.  Finally, all this indicates that the very same amount of money can purchase more penny stock shares than it can purchase more expensive securities shares. Tremendous gains can be made with a tiny initial investment. As a result, they have the potential to become extremely successful.  Despite their significant volatility, penny stocks provide excellent returns. These stocks have the ability to provide explosive growth of 100% or over in a single day, a...

What Is Cryptocurrency's Purpose?

Many elements of our lives have altered as a result of the digital era, including how we access information and communication throughout the world. With the introduction of cryptocurrencies, this pervasive digitization has left its stamp on money as well. But, you could wonder, what is the purpose of cryptocurrencies. In many respects, the emergence of cryptocurrencies typifies the digital era: after all, money is an abstraction of value exchange between individuals, and cryptocurrencies have the ability to measure, record, and transmit value transactions on a wider scale than ever before. These coins are run on decentralized communal networks and are available 24 hours a day, 7 days a week, from anywhere. In other words, cryptocurrencies are digital assets that are widely accessible and suitable for use in a digital environment. The Rise of Cryptocurrencies  Look no farther than the evolution of Bitcoin, the world's first cryptocurrency, to understand why cryptocurrency markets ar...

OTC Markets' Warning Symbols Explained

The OTC Markets, which are divided into three tiers: the OTCQX Best Market, the OTCQB Venture Market, and the Pink Market, trade over 10,000 securities. The Pink Market trades a wide range of firms, including overseas corporations with limited disclosure in the United States, penny stocks and shell companies, as well as troubled, delinquent, and dark companies who are unwilling or unable to offer information to investors. The amount of publicly available data varies from firm to company. OTC Markets has designed investor protection symbols to warn against firms that may entail greater risk than others, in order to assist investors to better understand the risks connected with these securities and to give more transparency. On otcmarkets.com, numerous of these symbols may show on a corporate quote page. Here's a breakdown of what each one represents.   BANKRUPTCY   This indicator denotes that the firm has filed for bankruptcy or has indicated its intention to do so. This w...

6 Types of Stocks

1. Blue Chip Stocks Stocks of a large and well established company that is consistently profitable. 2. Income Stocks Stocks that pay consistent and growing dividends in good and bad times. 3. Growth Stocks Stocks that are anticipated to grow at a rate above the average of the market cyclical. 4. Defensive Stocks  Stocks that pay a constant dividend regardless of the market conditions. 5. Cyclical Stocks Stocks affected by changes in the overall economy. 6. Penny Stocks Stocks with prices under $5 and are know to be volatile.

What is the role of transfer agent?

Transfer agent, usually trust company, bank or another financial institutions assigned by a corporation has several duties including maintaining issuer's security holder record, canceling/issuing certificates and distributing dividends among others. Because transfer agent stands between company that issues securities and security holders, transfer agent is crucial for successful completion of secondary sales. Pursuant to 1934 Act, transfer agent must be registered with the SEC or bank regulatory agency if transfer agent is a bank. The SEC also conducts inspections of transfer agent. Companies themselves can act as their own transfer agent. Transfer agent keeps record of who owns company's  stocks and bonds and how many each shareholder or bondholder owns. Also transfer agent issues and cancels certificates to reflect changes in ownership. In case of stock split or stock dividend transfer agent will issue new shares to shareholders. Just like stock transfer agent makes s...

What you need to know about futures contracts

Futures contract or just futures is an agreement between two parties to buy or sell assets at a predetermined price at a specified date in the future. Underlying asset can be stock market index, currencies or most common commodities - oil. gasoline and gold. Buyer of the future has the obligation to buy the underlying asset when the future contract expires just like the seller has the obligation to provide the asset at the expiration date. Futures that are traded on commodity future exchanges are more standardized and regulated like Chicago Mercantile Exchange or  New York Mercantile Exchange. Standardized contract means that for instance, one future oil contract is for 1,000 of oil and one gold contract is for 100 troy ounces of gold. The Commodities Futures Trading Commission regulates the exchanges and require buyers and sellers to be registered. Futures are used by two types of market participants - hedgers and speculators. Guarantees to buy or sell at a cert...

Derivatives - explained

Derivative is very complex complex to explain but at its most it is financial contract between two or more parties and it derives its price from an underlying asset. Basically buyer agrees to purchase the asset on a specific date at a specific price. There are numerous types of derivatives and underlying assets can be almost anything but the most common are commodities (oil, gasoline, oil), currencies, stocks, bonds, interest rates and market indexes. They can be traded on unregulated over-the-counter market where transactions happen between private parties or they can be traded on exchange where they are highly regulated and standardized. Bear in mind that OTC constitutes major portion of  derivative market and it caries great counterparty risk - possibility that one of the parties involved might default. Common derivatives are options, futures,swaps and forwards.  Options give the buyer right but not the obligation to sell or purchase underlying asset at a ce...

Securities Act of 1934

Companies raise capital by issuing shares on the primary market which is regulated by Securities Exchange Act of 1933. The following year Securities exchange Act of 1934 was enacted by Roosevelt administration which regulates securities on the secondary market, where they are traded after original issuance. This Act created Securities and Exchange Commission (SEC) and gave it broad power to register, regulate and oversee securities, markets and financial professionals. SEC has disciplinary power over regulated entities and person associated with them if they engage in prohibited conducts in the market. Requirements outlined in securities Act of 1934 must be followed by all companies that are listed on stock exchange. Primary requirements include corporate reporting, proxy solicitation, tender offers, insider trading and registration of exchanges and associations. Companies that have more than $10 million is assets and more than 500 shareholders must do annual and periodic ...

Importance of Securities Act of 1933

The Securities and Exchange Act of 1933 one of the laws that govern the securities industry. It was the first major legislation regarding the sale of securities, that shifted power from states to the federal government. It is known as the "truth in securities" law which President Franklin D. Roosevelt signed as a part of the New Deal.The Act was created to protect investors after the stock market crash of 1929, biggest bear market in Wall Street 's history. The Securities Act of 1933 had two main objectives: requirement that investors receive financial and other significant information regarding securities that are being offered for public sale. prohibition of deceit, misrepresentation and other fraud in the sale of securities Securities and Exchange Commission that was created year later, in 1934 governs the Securities Act of 1933. In order to accomplish set objectives SEC requires companies to register their securities and disclose essential information...

How SEC regulates stock market?

Securities and Exchange Commission (SEC) is independent U.S federal agency that regulates the stock market. It was created in 1934 by Congress to help restore investor confidence after the 1929 stock market crash. The Securities Exchange Act of 1934 was created by Securities and Exchange Commission. It govern securities transaction on the secondary market relying on Securities Act of 1933 which increased transparency in financial  statements and  established  laws against fraudulent activities. In essence SEC provides transparency by ensuring accurate and consistent information about companies that allows investors to make informed and sound decisions. Without transparency stock market would be vulnerable to market speculation and creation of asset bubbles.  Securities and Exchange Commission has five  commissioners and five different divisions: Division of corporate finance - review corporate filing requirements ensuring that investors have c...

What you need to know about corrections

Stock market correction happens when the market falls 10% or more from it recent peak. Correction can occur in securities or any other asset class. To knew investors this may come as a big surprise but corrections are natural part of market cycle that happen often and they can even strengthen the market. It is caused by certain events that triggers selling but market usually makes up loses in couple of months. Correction is not the same as the stock market crash. Correction happens when fall of 10% manifests itself over days, weeks or months while stock market crash happens when price drops by 10% in one single day. Stock market is one of the main indicators of economic health since buying and selling of securities is based on investors projections, whether they have positive or negative expectations of future market movements. Corrections don't last long, usually it is three or four months and they can happen more than once a year. They happen during expansion phase and i...

Risks and rewards of bull market

Bull market is market trend when price of assets or securities rise by 20%, an opposite from bear market. The term bull market is usually used when talking about securities but the term applies to anything that can be traded, real estate, currencies and commodities . During bull market all three major stock indexes, S&P 500, Nasdaq and Dow Jones Industrial Average rise. Bull market happens in healthy economy and is characterized by investor confidence and optimism. The term can be also applied to investors, ones that have optimistic view of the market is called bull or bullish. On the other hand investors with pessimistic view of the market are called bears or bearish. Natural rise and fall of economic growth over time is known as business cycle and it has four phases: expansion phase, peak, contraction and through. Bull market happens during expansion phase when economy is growing with strong GDP, with drop in unemployment and strong corporate profits. In stock market...

How to invest during bear market?

Bear market is defined as a market trend in which price of securities fall 20% or more from previous market peak and last two months or longer. Usually bear market is caused bu declining economic activity caused by a change in monetary policy. Recession is accompanied by low employment. Stock market crash, drop in stock price of 10% or more in just a day or two can cause bear market and negative investor sentiment. It can occur in any asset class, stocks, bonds, currencies and commodities or section of industry. In stocks bear market is measured by indexes like Dow Jones, S&P 500 and Nasdaq, if they are continuing to lower over period of time. Bear market can be recognized through observation of business cycles. It is the opposite of bull market or expansion phase when asset price continue to grow over time. sometimes corrections, less severe decline in price that lasts less than two months. Investors use different steps to protect themselves like increasing amount of cash...

Listing your company on Nasdaq

NASDAQ or the National Association of Securities Dealers Automated Quotations is an American stock exchange, second largest stock exchange in the world after New York Stock Exchange (NYSE) in terms of market capitalization. It was founded in 1971 as the world's first electronic stock market. In 2006 Nasdaq changed its status from a stock market to a licensed security exchange. With approximately 3,900 listings Nasdaq has market capitalization of around $10 trillion from various industry sectors like technology,  telecommunication, healthcare and financials. Nasdaq's normal trading sessions are between 9:30 a.m. and 4:00 p.m. Eastern Standard Time and offers quotes at three levels. The Nasdaq stock market has three distinctive tiers: The Nasdaq Global Select which consist of U.S. based and international stocks that represent the Global Select Market Composite. It has the most stringent financial and liquidity requirements. The Nasdaq Global market includes stock that...

Investing strategies

Investing strategy can be understood as set of rules that guide investor in his decisions regarding investment portfolio. Investors use strategies to balance risks and rewards in accordance with his risk tolerance investing goal and investment horizon. Taking time to understand which strategy suits you the best can also help you avoid unwanted expenses. You can look at it as existence of two extremes where on one side are investment strategies that seek rapid growth which includes greater amount or risk and on the other side is low risk strategy with regular dividends payment that is more concentrated on wealth protection. In other words there is always some kind of  trade off between risk and return on investment and most investors are not in the one of those two extremes but somewhere in between. You should honestly assess your current financial situation, your expenses and debt and how much you are able to invest. Investors using value inves...

The benefits of crowdfunding

Crowdfunding continues to grow globaly. Total crowdfunding raised worldwide from 2014 to 2016 is $2.1 billion while in 2016 in US total crowdfunding raised was $738.9 billion. The crowdfunding industry is projected to grow over $300 billion by 2025. North America remains the largest crowdfunding market, having raised $17.1 billion in 2017. Asia with fast growing market is catching up with $10.54 billion raised the same year, while the Europe is in the third place with $6.48 billion. Cro wdfunding can be used as afree marketing tool. Crowdfunding paltforms make new projects easily discoverable giving exposure to a lot of new people on the platform. In addition, most platforms incorporate social media makin it easier to share and spread the message via facebook, twitter and other platforms. Also, media often picks up on the popular projectes, providing them with more publicity. People with limited resources can test their product by using the crowdfunding platform to do pre-sal...