stock market foundations
Educational articles in this subcategory.
Glossary: Stock Market Structure Terms
## Introduction This glossary defines 30 stock market structure terms that every investor should understand when analyzing how US equity markets oper...
Reading Short Interest and Days to Cover
## What Short Interest Measures Short interest represents the total number of shares currently sold short and not yet covered. When investors short a...
Float Rotation and Turnover Metrics
## What Float Rotation and Turnover Measure Float rotation measures how quickly a stock's available shares change hands. When trading volume equals t...
How ETFs Impact Underlying Stock Liquidity
## The ETF-Stock Liquidity Connection Exchange-traded funds now hold approximately **$8.5 trillion** in US equity assets as of late 2024. The three l...
The Role of Market Makers and Wholesalers
## What Market Makers and Wholesalers Do Market makers are firms that continuously post bid and ask prices for securities, standing ready to buy from...
Retail vs. Institutional Participation Trends
Retail investor participation in U.S. equity markets has surged dramatically since 2020. According to the Financial Industry Regulatory Authority (FIN...
Corporate Investor Relations Playbook
Every public company maintains an investor relations (IR) function responsible for communicating with shareholders, analysts, and potential investors....
Listing Standards: NYSE vs. Nasdaq
The New York Stock Exchange lists approximately 2,400 companies with combined market capitalization exceeding $28 trillion, while Nasdaq lists over 3,...
Insider Lockups, Quiet Periods, and Trading Windows
After an IPO, corporate insiders typically cannot sell shares for 180 days under lock-up agreements negotiated with underwriters. When these lock-ups ...
Understanding Prospectuses and S-1 Filings
When a company prepares to sell stock to the public for the first time, **the SEC requires disclosure of every material fact that might influence an i...
Regulation NMS and Order Routing Basics
When you place a stock order through your broker, that order can travel to many different destinations before executing. Regulation NMS (National Mark...
Trading Sessions, Halts, and Circuit Breakers Explained
U.S. stock exchanges operate on defined schedules with specific rules governing when trading can occur and when it must pause. Understanding trading s...
Dividends, Buybacks, and Total Shareholder Return
Companies with excess cash have two primary methods to return capital to shareholders: dividends and share buybacks. Understanding how these mechanism...
What Drives Stock Prices Over Days, Months, and Years
Stock prices change constantly during market hours, yet the factors driving those movements differ substantially depending on the time horizon. Daily ...
How Index Providers Build and Rebalance Benchmarks
Stock market indexes serve as the foundation for trillions of dollars in passive investment products. Understanding how index providers construct and ...
Free Float, Shares Outstanding, and Market Cap Math
Market capitalization calculations seem straightforward but contain nuances that significantly affect how investors evaluate company size and liquidit...
Share Classes, Voting Power, and Control Provisions
Dual-class and multi-class share structures create a separation between economic ownership and voting control. Among S&P 500 companies, **7% use dual-...
Common vs. Preferred Stock Structures and Rights
Common stock and preferred stock represent fundamentally different ownership claims on a company. Common shareholders own **residual equity** (what re...
IPO vs. Direct Listing vs. SPAC: Key Differences
Companies can access US public markets through three distinct mechanisms: **traditional IPOs**, **direct listings**, and **SPAC mergers**. Each path c...
How Public Companies Raise Equity Capital in US Markets
Public companies raise equity capital through two primary mechanisms: **initial public offerings (IPOs)** and **follow-on offerings**. In 2023, US com...