share trading

The dangers of share buys backs

Share buy backs may be seen as a positive move by the market. This is because it looks as though the company is confident of their stock price going up. But these share buy backs may indicate the company is not using their capital efficiency. Below are some hidden negatives of share buy backs. What is a share buy back? Share buybacks occur when a company repurchases their own shares so they can gain back some ownership from shareholders. They …

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What does a toppy market mean?

The term “toppy” is frequently used by financial journalists to convey a market which seems to be trading at its high. In this article we talk about what a toppy market it and the strategies that can be implemented to reduce risk in this kind of market. Definition A toppy market occurs when the market has hit a level where market looks like it can’t extend from. There may be market sentiment that there is an asset bubble forming. Investors …

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