Author Archives: Thomas DeGrace


Undervalued Stocks

Posted by: Thomas DeGrace on February 20, 2011

Undervalued Stocks is a stock that is trading below its market value. Understand How Undervalued Stocks Works There are a number of ways people determine if a stock is undervalued.  It maybe trading at a P/E lower than its historical value, sector or a discount to the market.  The stock … Continue reading

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Recession

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Recession is a period of economic decline which generally leads to higher unemployment and a contracting GDP. Understand How Recession Works The general consensus is that a recession is at least 2 consecutive quarters of negative GDP growth.  The NBER or Business Cycle Dating Committee makes the official declaration as … Continue reading

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Triple Net Lease

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Triple Net Lease is a lease in which the tenant or lessee pays in additional the lease the insurance, taxes and maintance expenses. Understand How Triple Net Lease Works This type of lease is common common for commercial properties such as retail centers.

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Initial Public Offering

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Initial Public Offering (IPO) is a company’s first offering of stock to the public in order to raise money. Understand How Initial Public Offering Works In order for a company to go public, that company would need to have millions in revenue or earnings.  Individuals can’t buy IPO share unless you … Continue reading

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Hedge Fund

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Hedge Fund is a private investment fund that isn’t traded on the public markets. Understand How Hedge Fund Works A hedge fund is different from a mutual fund in that there is a larger variety of investment types and strategies that can be used in hedge funds.  Investors often have … Continue reading

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GDP or Gross domestic product

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GDP or Gross domestic product is the total of all goods and services that are produced by a country in a given time period such as quarterly or yearly. Understand How GDP Works To determine what the GDP is, you need add private consumption, gross investment and government spending.  Lots … Continue reading

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Economy of Scale

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Economy of Scale referred also as economies scale is the reduction of cost due to increased output. Understand How Economy of Scale Works When a company does an acquisition or merger, you often hear them refer to economics of scale as one of the primary reasons for the acquisition.  As … Continue reading

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Amortization

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Amortization is the paying off of debt in installments over a period of time. Understand How Amortization Works Whenever you get loan such as a mortgage, you are require to pay off that loan in equal installments over a set amount of months or years.  An amortization schedule table can … Continue reading

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Call Option

Posted by: Thomas DeGrace on February 11, 2011

Call option is the right to purchase stock at a strike price at any time before the predetermined deadline.  After the deadline, the option is expires. Understand How Call Option Works The advantage of a call option is the ability to control a large amount of shares with just a little … Continue reading

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Correction

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A Correction is move down in the DIJA of more than 10% which can be over a short period of time (a week or two) or all in one day. Understand How Correction Works A correction can sometimes just be a step back in a long-term bull market or can … Continue reading

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