Lauren Hua

What is the difference between a hedge fund and a managed fund?

One would assume that hedge funds and managed funds are the same thing. This is because both are a managed portfolio of shares. However, the objectives of both are different and this is what sets them apart. Below we outline the differences between a hedge fund and a managed fund. Managed Funds These usually have specific objectives such as investment in a specific asset class or investment strategy. You can invest in managed funds that hold equity, bonds or alternative …

Read MoreWhat is the difference between a hedge fund and a managed fund?

5 common misconceptions about the stock market

There are some common misconceptions about the stock market which inexperienced investor may believe is true. Here are five common myths and the reasons why these may not true. 1. The stock market is like the economy A common misconception people have is that the stock market should behave exactly the way the economy does. When the economy is performing poorly, people think the stock market should do the same. However, the stock market is not the economy. Share markets …

Read More5 common misconceptions about the stock market

What is a moving average?

Moving averages are a common tool used by technical analysts to identify the trend of a stock price or index. Two common examples which are used is the simple moving average and the exponential moving average. The simple moving average uses all the data point in equal weight. However, the exponential moving average focuses more weight on the recent price. Moving averages can be used for the period the investor wants to analyse. Most commonly used is the 50 or …

Read MoreWhat is a moving average?

Bonds Simplified

Companies can raise capital through a debt or equity raising. In the stock market we buy shares which are essentially equity in a company. Shareholders own a small portion of the company through their stock holdings. Equity investors hope to make a capital gain when they sell at a higher price than when they brought it. They may also receive dividend income from holding these shares. Bonds are debt instruments and are structured differently. In this article we simplify how …

Read MoreBonds Simplified

What is the difference between a recession and a depression?

The terms recession and depression have been spoken about recently because of the economic effects of COVID-19. But what are the difference between the two and how do they both affect the stock market? A recession occurs when there are two consecutive quarters of declining gross domestic product (GDP). The GDP measures the total value of all goods and services an economy has produced. It is one of the economic indicators used to evaluate the health of an economy. A …

Read MoreWhat is the difference between a recession and a depression?