It sounds crazy but it's done many times. Get a bunch of companies to agree to be acquired by you, contingent on your going public and raising money to pay off the acquired company owners. It's called a Poof IPO and it's a novel business finance concept that has been used to make something out of nothing.
Investment Strategies: Butterfly Spreads
Although an endless amount of strategies using puts and calls exists, some combinations are more widely used than others for equity investments. Many popular methods for managing the riskiness of portfolios involve the use of spreads. One particular type of spread, called a butterfly spread, profits from the lack of volatility in a stock's price during a given period of time. This article will introduce the options strategy of butterfly spreads, how they are created, and how investors profit from their design.
Phantom Stock and Stock Appreciation Rights
So you're an entrepreneur with a young company and you want to get your employees excited about the performance of the company but can't afford the cost of dilution associated with issuing options or restricted stock. Phantom stock and Stock Appreciation Rights can be a great way to overcome this obstacle.
Investment Strategies: Box Spreads
Through different combinations of call and put options, equity investors hedge particular risks associated with their investment portfolios. Money spreads allow investors to profit from certain movements of a stock's price while limiting their amount of exposure. One specific type of money spread involves box spreads which combine put and call options to earn risk-free profits. This article will introduce box spreads, how they are created, and how investors profit from their designs.
Investment Strategies: Put Options
Many companies have excess cash or other assets on their balance sheets that must remain relatively liquid for their operations. A company could be preparing to make a large capital investment or participate in another strategic action in the near future. Whatever the reason, companies can benefit by investing their short-term or excess capital in securities. Although many alternatives exist with securities, call and put options offer a variety of opportunities for firms to realize returns while minimizing the amount of risk involved. This article introduces the hedging instrument known as put options.
Investment Strategies: Protective Put
Protective puts which allows investors to limit the downside risk of their investment while maintaining the upside profit potential. This article introduces the hedging strategy of protective puts, how they are created, and how investors profit from their design.
Investment Strategies: Bear Spreads
Equity investors are able to hedge certain risks involved in their portfolios through different arrangements of call and put options. Various strategies use spreads which involve the purchase and sale of options with either different exercise prices or expiration dates. One particular type of spread is a bear spread, a strategy which profits from decreases in a particular stock's value. This article introduces the option strategy of bear spreads, how they are created, and how investors profit from their designs.
Investment Strategies: Bull Spreads
By combining call and put options in various ways, equity investors are able to hedge certain risks involved in their portfolios. Various strategies use spreads which involve the purchase and sale of options with either different exercise prices or expiration dates. One particular type of spread is a bull spread, a strategy which profits from increases in a particular stock price. This article introduces the option strategy of bull spreads, how they are created, and how investors profit from their designs.
What You Should Know About Stock Options
Stock options are a widely used form of executive compensation, yet a lot of entrepreneurs don't fully understand how they work, when to use them, or the negative impact they can have on a firm. This article provide a brief description of stock options and what you should know about them.
Understanding the Dow Jones Indexes
Have you heard news reports of the 'Dow' rising or falling, and knew that it had something to do with the stock market, but wasn't completely sure of what the 'Dow' was? Dow Jones & Company has created a number of indexes which track the financial performance of certain stocks since 1896. This article explains what the 'Dow' is, and the role it plays in today's financial markets.
Understanding the S&P 500
Like the 'Dow,' the price of the S&P 500 is often mentioned on news reports when the stock market is discussed. What exactly does the S&P 500 represent, and what does it mean for business owners and entrepreneurs? This article outlines the historical significance of the S&P as well as its current role in financial markets.