Month: May 2022

For example, reversal or breakaway gaps are typically accompanied by a sharp rise in trading volume, while common and runaway gaps are not. Additionally, most gaps occur due to news, or an event such as earnings or an analyst’s upgrade/downgrade. Gap trading plays a crucial role in the stock market, offering traders opportunities to profit […]

Exhaustion gaps occur near the end of a price pattern and signal a final attempt to hit new highs or lows. These gaps are often followed by a reversal in the prevailing trend. Gaps occur due to news, imbalances, or other factors between the close and the open, leading to a higher or lower opening […]

The following tables reveal general features that can be modified on a company by company basis. Some preferred stock issues may carry a provision entitling the shares for conversion to common stock. Suppose a business is liquidated, if the preferred shares are non-participating, then they simply receive their original investment (in this case 105,000) and […]

The potential for conversion must be factored into the calculation of diluted EPS, a metric that provides a more comprehensive view of a company’s earnings by considering all potential sources of dilution. This requires careful attention to the terms of conversion and the timing of potential conversions, as these factors can significantly impact the diluted […]

The qualified business income (QBI) deduction is one of the best tax planning tools out there yet most business owners have never heard of it. The 15% reduction ratio multiplied by the excess amount of $20,000 is $3,000. The deductible QBI amount for the business is therefore 20% of QBI, $60,000, less $3,000, or $57,000. […]