Features Page 38

Coffee beans falling out of bag with scoop
Derivatives trading: 5 of the weirdest you can buy

The key to understanding the derivatives market is knowing that these investment products are just what they say they are: derivative.

Neil Dennis
Charts of financial instruments with various type of indicators
Financial instruments explained in simple terms

There’s lot of specialist language in the financial markets: indices, IPOs, forex, bonds and annuities, for example. Here, we bust some of the jargon. Stay with it – it’s easier than you might think.

Adrian Holliday
 Bull and Bear paper art
Why are falling and rising markets called bear and bull?

Bull and bear markets can reflect the optimism and pessimism of the economy but markets can also run counter to the economic data. They can rise – be bullish – when pessimism dictates they should fall and fall – be bearish – when optimism says they should rise.

Claire Hunte
White arrow with GDP word hang on yellow background
Using GDP as a check-up on the UK’s financial health

A headline gross domestic product (GDP) gives a reading of basic economic health – or sickness. But you need to press and prod in the right places to get a full picture of what’s working and what’s failing.

Adrian Holliday
Newspaper stand
Trading the news: how markets react to new events

The news, what's happening right now, is as important to the investor as technical charts and historical market data. Company news, economic news, political news.

Neil Dennis
Private company stamp
Valuing private, family-owned and non-listed companies

Privately held companies can be valued by peer-group comparisons with similar stock-exchange listed firms and through cash-flow analysis.

James Hester

Treasury saving bonds
Top 4 common bond-buying mistakes for investors

You’re ready to add bonds to your investment portfolio because it provides income, and/or as a means to preserve capital. Sound like you? If so, avoid these four common mistakes:

Claire Hunte
charts and graphs with pen-pencil
The pros and cons of hypothesis testing and backtests

Hypothesis testing is an instrument in the financial market trader's toolbox to help guide investment strategy by statistical means. The use of charts and historical data is commonplace, but the use of statistical mathematics is rare among private investors.

Neil Dennis
businessmen shaking hands
The impact of mergers and acquisitions on companies

Anecdotal evidence from the investment banking industry suggests that 70% of all mergers and acquisitions (M&A) fail and destroy value, sometimes spectacularly.

Brian Bollen
Sector Analysis - Industrial Engineering

Can the old style industrial engineering metal bashing companies become more flexible like their smaller component makers?

Hilaire Gomer
The future of cryptocurrency

Are cryptocurrencies the future of international financial transactions? Can they be traded? Will the supermarket shopper use a digital currency to buy their groceries any time soon? To answer those questions, it’s necessary to look at exactly what a cryptocurrency is.

Richard Reed
workers compensation form
Should employees be compensated with stock options?

Employee stock options are schemes to enable workers to buy stakes in the companies they work for. They can be an effective way of rewarding, retaining and incentivising staff, and were historically seen as a highly desirable staff benefit.

Richard Reed
program trade
The program trade: Perks and pitfalls

Program trading – the computerised exchange of vast sums of assets – has champions and critics in equal measure

Neil Dennis
stacked money coins
Short selling versus put options: a guide for investors

Short selling and buying put options can be used to profit from falling share prices. But what differentiates the two approaches and how do they stack up against each other?

James Hester Video
stack of 100 dollar bills
Nine reasons why deflation is a central bank nightmare

Deflation fires off a tonne of things central bankers don’t want in a grown-up economy

Adrian Holliday