Investors know that buying and selling securities is risky. The simple logic of the market – buy low, sell high – isn’t often easy to achieve. Modern Portfolio Theory (MPT) attempts to assess the maximum expected return of a portfolio given a specific amount of risk.
Short selling involves selling shares of stock you do not own (that you have “borrowed”) in hopes you can later buy the shares for less than the sale price, replace the shares you borrowed and turn a profit at the same time.
Short sellers have recently been taking on tech – and not just any tech – big tech. Specifically, they have targeted Apple Inc. (NASDAQ:AAPLC), Amazon.com Inc. (NASDAQ:AMZNC)and Alphabet Inc. (NASDAQ:GOOGC).
Alternatives, also known as alternative investments, are assets that are not stocks, bonds or cash – in other words they are not traditional investment vehicles. The majority of alternative investments are made and held by institutional investors or accredited, high-net-worth individuals.
The Financial Ratios analysis is the next step in understanding the company's historic performance and assess if the company fits your fundamental financial benchmarks.