Mina Mar Group

Market indexes prove summary of overall market by tracking some of the top stocks on the stock market in the United States and they show in which direction the market is going. Indexes don't represent every company but selected portion of the market. Some indexes track small and mid cap companies, some large companies or companies within certain sector. Three major market indexes are Dow Jones Industrial Average, S&P 500 and Nasdaq. They differ in number of companies they track and calculations they use. Dow Jones Industrial Average It is the oldest market index of the three and some the most popular in the media.Journalist Charles Dow, founder of Wall Street Journal created the index that tracked the movement of the whole market, together with statistician Edward Jones on May 26, 1986. The original Dow Jones index had two industrial companies and ten railroads. He realized that two industrial companies are becoming more important and created a new Dow Jo...

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...

Due diligence is defined as investigation or audit that reasonable business and person undertakes before potential investment or before entering an agreement to confirm all facts. Most investor are doing research before buying a security but due diligence can be done by a seller who investigates buyer's capability to complete the purchase. After the Securities Act of 1933 due diligence become common practice in United States when brokers and dealers became responsible for disclosing all relevant information about securities they were selling or they will otherwise be accountable and liable for prosecution. This put brokers into sensitive position where they could be unfairly prosecuted. In response creators of the Act set rule that says if broker performed due diligence when investigating companies whose securities they are going to sell and disclose that information to the public they are not held accountable. Not only prospective investors perform due diligence but also ...

Many small-cap and micro-cap companies are in a need of additional capital. Obtaining funding can be tricky and it is best to have someone experiences to advise you about financing proposals. Many of the offers can seem legit at first sight but if you look deeper they are just  camouflaged toxic financing contracts. The real question is what is toxic financing and how you can recognize it? Toxic financing can be defined as convertible debt or preferred stock that allows financier to receive unlimited number of common shares by converting their debt. This type of debt has low chance that it will be repaid because it carries an interest rate that company usually cannot repay. Financier uses this situation to convert debt or preferred shares to common shares and sell them on the market. Formulas that are used for conversion in toxic financing  is structured so there is no downside limit on the price for converted shares. It gives discount to the marke...

Warrants are similar to options but there are few key differences. Warrants are derivatives that give the right but not the obligation to the holder to buy or sell security before expiration date. The price at which underlying security can be bought is called strike price and should be bought before an expiration date. Like option there are call warrants that give holder the right to buy a security and pit warrants that give the right to sell security. Underlying securities are commonly equity but they can also be currencies, commodities and other financial instruments. Warrants are issued directly by the company and not the third party. Investors can write options but they can't write warrants. Finding and trading warrants is also more difficult because they usually trade on over-the-counter market and not stock exchanges. If they however trade on exchange they have a thicker of an underlying stock but with letter W attached at the end of the ticker. Warrants are dilutive...

Simple definition of short selling  is the sale of an asset that the seller has borrowed in order to profit later from  fall in the price of the asset. In other words trader sells securities at one price and buys it back at a lower price making gain in the price difference. in this article we are referring to stock although you ca short any instrument or asset, bonds, commodities, currencies, etc. There is usually certain amount of speculation that causes traders to short sell or the need to protect oneself against loss on investment by balancing transaction. Basically there are two basic types of investors, buy-and-hold investors and  day traders. The first hold their portfolio stocks for the long term expecting to see significant rise in price over time which will result in gains. Other category of investors trade on the short term basis. Unlike investors that go long and wait for stock price to build up traders buy stock that will possibly fall in price....

Stock split or forward stock split is a corporate action where board of directors decides to issue more shares by dividing existing outstanding shares into multiple shares defined by the predetermined ratio. Most common ratios are 2 for 1 or 3 for one where investors for every share they own get two or three shares respectively. Likewise, price will be divided accordingly. If for example you originally owned 100 shares, each worth $15 in 2 for 2 split you will receive 200 shares  each worth $7.5 and in situation where 3 for 1 split is done it will be 300 shares with $5 price per share. As you can see no real value is added and market capitalization is the same just like with reverse stock split. Companies do this for various reasons. Some stock price can reach astonishing level and company's official might want to lower the price to make it more appealing to small retail investors. Some argue that there is a psychological effect which makes owning more stock at a low...