STOCKS TELEGRAPH

Author: bilalahmed

  • Stock market for newly minted investors

    Whenever you will read about what the stock market is, you will come across definitions like these;

    “The stock market is an institutionalized framework formalized for a collection of international markets and exchanges, facilitating interchangeable transactions of financial securities between burgeoning corporates, institutions and private entities while equilibrating equity of information allocation and prohibition of its exploitation.”

    Chances are that you could not understand this corporate stock-savvy jargon and you are not alone. Many people are not aware of what the stock market does. This is because the definitions and explanations surrounding the world of the stock market are still implied with very technical words just like the one above. This makes it sound like something a common person probably won’t understand and will have a hard time figuring out.

    How to grasp the concept behind what is the stock market?

    We like to rephrase the question “What is the stock market” to “what do you actually do in a stock market?” which will make it better for you to grasp the concept.

    Well, the stock market helps you with making investments in companies in order to have the potential to increase your net worth and profitability. And by you, we mean anyone in the public who wants to invest in a company or companies. This is actually great for companies that are looking for investments to boost their company but may be turned down by financial institutions and entities like the bank.

    What’s remarkable is that if these companies that you have invested in start churning up more profit and revenue, this can actually lead to you gaining more returns on your investment. However, the opposite is also true. If a company’s financial performance is poor, or it is going into a loss for some reason, your investment will have to bear those losses.

    So, now that you know what a stock market does, we can now define what it actually is. The stock market is a market space where it introduces both the investors like you and the companies that want investment. What it facilitates is the sale and purchase between both the investors and the companies. But how are investments sold and bought between these two entities in the market?

    The answer is one simple word called stocks.

    What is stock in the stock market?

    To explain what a stock is, we need to introduce the key component and key players in the stock market.

    Let’s start with the key component in the stock market, stocks. A stock is the financial medium of exchange through which the investors and companies execute the transaction of investments.

    The stock represents the portion of equities of a company or simply a small portion of a company that investors can buy and have ownership of. The investment in a company occurs when the stock that the company puts out is bought by the investors. Investors invest in a stock of a company, and in return get shares of the stock which are equal to the money invested. A share is the unit of stock that is bought, and they price it according to how much the demand of the stock is valued by the public.

    We will explain stocks in more detail once we address the key players in the stock market.

    What are the key players in the Stock Market?

    The key players in the stock market include;

    • Investors
    • Company’s stock
    • Traders
    • Brokers
    • Regulators

    Let us find out who they are;

    Who are Buyers – investors?

    As we mentioned before, Investors or buyers can be both individuals like you or institutional investors who aim to invest in the company’s stock.

    Who are sellers and companies?

    Sellers are companies that can be of any size and industry, who are seeking investments for their business. These companies place a percentage of their business ownership as stock or equity. Units of the stock are called shares, which are then bought by investors. The companies gain investment in return for exchanging a portion of ownership of their stock to the investors.

    What do stock exchanges do?

    Stock Exchange is the actual platform where the sale and purchase of stock transactions take place between investors and companies. It is a regulatory body that lists a lot of companies. A company can be listed on a stock exchange if it meets the eligibility criteria and requirements of the stock exchange. These requirements include information on the financial activities of the company and compliance with the rules of the stock market. There are many types of stock exchanges and all of them are important role-players in the stock market.

    We will talk further about the workings of the stock exchange after we explain the key players.

    Let’s now find out who are regulators?

    Financial regulators are the entities and agents that govern the financial market. These are usually government bodies and autonomous financial institutes that ensure everyone in the stock market is trading fairly. Regulators mainly do this by making sure that the availability of information on companies for investment decisions is general information available to everyone in public. This is done to make sure that there is no exploitation and illegal investments made between traders and companies.

    So, who are traders?

    Traders are also sort of investors or institutional investors whose primary job is to trade stocks. They engage in buying and selling of stock in different companies. This is done by traders with the aim to profit off of short-term gains from stock price fluctuations.

    And finally, we ask who brokers are?

    Brokers are the intermediaries between an investor and a securities exchange. These can be individuals and firms who buy and sell a stock for you in the stock exchange.

    Now let’s figure out how all of these players and component fits together in the stock market.

    So how do stocks and stock exchanges interact in the stock market?

    Stock exchanges are one of the major platforms for the stock market. A company makes its stock available to the general public for investment by listing itself on the stock exchange. Once listed on the exchange, the company releases a public offering. An offering is where the company releases a portion of its total shares in the market. These shares are set at a specific price for the public to buy. Once this offering is bought by public investors and traders, it is then frequently resold and bought among the public. Apart from the volume of shares released by the company, the public cannot directly buy more shares from the company on the stock exchange. The company decides when it wishes to release another public offering to the public. Until then, the public keeps trading the existing shares of the company in the stock market back and forth.

    This is why the stock exchange is known as the secondary market. Let’s now discuss the primary market and how a company makes investments before being listed on the stock exchange. For this, we will dwell on the concept of IPO.

    What is Initial Public Offerings (IPOs)?

    When a company decides to launch its stock to the public through the stock exchange or exchanges, it has to provide an initial offering of its stock to the public. Generally, this process is what is known as Initial Public Offering. Before the IPO, a company is a private business and can seek investments mainly from certain private investors. These private investors are also known as private shareholders. This is because they invest in the private shares of the company. Both the private company private investors do this transaction in the hopes that the company will become more profitable once publically launched. In the IPO, the private company finally becomes public by releasing new issuance of stock now to the public investors. If the newly public company draws up the attention of the public and has a lot of demand for its stock. Then its stock price will drive up which reaps profit for both the public company as well as the initial private investors.

    What is the difference between the Stock market and Stock Exchange?

    There is a difference between the stock market and stock exchange, despite both being used interchangeably in a general scenario. The stock market consists of multiple stock exchanges and a lot of other key components that we have mentioned earlier. Stock exchange, on the other hand, is just a part of the stock market. When saying that one is trading in the stock market, this means that they trade in more than one stock exchange. However, when the stock exchange is mentioned for trading, it means a specific stock exchange is being chosen for trading. There are many types of rules and regulations governing the stock exchange. These regulations are intrinsically that of a specific exchange. While there are also laws that govern these stock exchanges, which are enforced by financial regulators or financial regulatory bodies. All parties involved in the stock exchange are to be compliant with these regulations during any transaction.

    Everything that is explained up till now is all that you need to know about the basics of the stock market. To summarize it all up, let’s have a rundown on what happens in the stock market.

    A rundown of the stock market

    Initially, in the stock market, an investor or trader buys the shares of a stock or stocks of companies in a stock exchange. This is done through a broker. A certain volume of shares is traded in that transaction between traders. However, when a company wants to raise revenue, it announces public offerings of its stock at a certain price. Investors buy these as well. The stock exchange, like NASDAQ and regulators like SEC, then makes sure that these offerings and trading are done legally. In the end, an investor owns a portion of the company’s stock through their investment, while companies gain more capital and revenue. This is a simple rundown of the stock market.

    Frequently asked Stock Market and trading questions

    Now that you know what occurs specifically in a stock exchange, here are some of the questions you may ask related to the Stock market and stock exchange activities.

    What is trading?

    Investment transactions occurring through buying and selling of stocks is known as trading. Each stock of the company has shares of stocks that they sell to investors are traders.

    What are shares of stocks?

    Shares are the units created for stocks. When an investor buys these stocks the trade occurs through investment.

    What is the volume of stock?

    The volume of the stock is the general unit of stock that is being traded in the market at a certain time period. The usual period used for this is the volume of trade in a day, week, 30-day, 50-day period, 90-days period, etc.

    What are outstanding shares?

    Outstanding shares of a stock are those shares that the company has not yet released in the stock market. In order to raise capital, the company may sell a portion of these outstanding stocks at a certain price in the market.

    What is the share price of a stock/Price per share?

    The price of each share of a stock is known as the share price of a stock. This determines the current value of the stock in the market.

    What is the current market value of a stock?

    The company is valued in the market based on the total price of each share it has sold in the market.

  • Stock definition and types of stocks

    You have often heard the word stock being mentioned on the news, in conversations, or on the internet. It is used in relation to many other terms, some of which are stock market, investing and trading, as well as company growth. Understanding stocks and types of stocks, can help you in the future by learning how to invest in companies and their stocks.

    So let us start by asking the main question “what is a stock? And why is it so much related to investors, corporations, and even the economy?”

    Grasping the concept of stock through an analogy

    Let’s give an analogy to stocks in order to make it easier for you to understand.

    Imagine that you are at a carnival, and you have bought a ticket for a rollercoaster ride. At this carnival, the ticket prices of the rides quickly fluctuate because of the demand for rides and other factors. Suppose you bought the ticket for a rollercoaster ride at a certain moment for $2 and hold on to it. A few moments later, the price of the rollercoaster ride goes up to $3. This increases the value of your ticket by another dollar.

    As more time passes, more and more people show up to demand rollercoaster rides, which drive the price of the ticket up to $5. So now you are making a $3 profit if you sell your ticket to someone else. However, you decide to hold the ticket till late at night hoping to make more profit. Unfortunately, people are not buying tickets for a rollercoaster ride anymore because maybe the rollercoaster ride did not get excellent reviews or is not exciting as people expected. The prices of the rollercoaster’s tickets drop to $1. And now you are at a $1 loss just by holding your ticket for the rollercoaster ride.

    This is an example of how stocks work in the stock market. In this example, shares are like the tickets – while the rollercoaster ride is like a company. The carnival itself can be compared to the stock market or stock exchange where you buy stocks. Just like how each ride has its own tickets in the carnival – similarly, each company has its own stock that is sold on the stock exchange.

    What is the definition of stock?

    So now that you have a general sense of what it is, let’s give you a proper definition. A stock is known as equity, which gives you ownership of a fraction of a company or corporation. The company puts shares out in the stock exchange in order to generate capital and funds through public investment. Remember, the term share means one unit of stock.

    You buy and hold on to shares, hoping to gain profit in a future time period. If the company performs well, and people start demanding more shares, the stock price will go up. However, the company’s performance is not the only reason for an increase in the price. Its performance can increase due to external factors as well.

    The opposite is also true. For any certain reason, the price can also recognize loss after some time. This is just like the loss you incurred in the analogy while holding the rollercoaster ticket at night when its price dropped due to less demand. Now in the real scenario, low stock performance can lead you to face loss through your shares of the company.

    What is stock ownership?

    After listening to this definition, you might ask, “Do I now own a part of the company if I own a portion of its stock?”

    To answer this, let’s use the carnival-ticket analogy again before we give the technical explanation. When you buy the ticket for the rollercoaster ride, you do not own the rollercoaster itself in any way. What you do own is the right to enjoy the ride, which is the service that the owner of the rollercoaster has set for you. What you can only do as a ticket-holder is use the tickets as you please, but you cannot own the rollercoaster or parts of it as assets.

    So similarly if you own shares or a portion of a company’s stock, for example, let’s say you own 20% of the stock. It does not mean that you now own 20% of the company or its assets. What it means instead is that you can only earn the profit from the company which you gain from your 20% share of the stock. In short, what you are is a shareholder and not a company owner.

    What rights are stock owners entitled to

    The differentiation is legally important too because the internal control and functioning of the company’s assets are done only by the management–while the stockholders only have certain rights in the company. These certain rights include the right to vote in shareholder’s meetings, accept dividends from the company (depending on type of stocks) and sell your shares to whomever you wish.

    The dividend is the share of the profit that a company earns through its own business model, which it then divides among the stockholders. However, corporations can decide to use this profit of theirs to reinvest back into the company’s growth instead of dividing it among shareholders.

    There is, however, one way to indirectly exercise control of a company by being a stock owner. If you own a majority of shares, then your influence on the company can indirectly increase. You gain majority voting power in shareholder meetings and decisions. With this power, you can choose to appoint certain members of the board of directors during a shareholder meeting. This can change the focus and mission of the company to a certain extent.

    What are the types of stocks?

    Now let’s talk about the types of stocks out there. There are vast types, but the ways these types are divided are based on the following categorical reasons;

    The first-way stocks are categorized is based on the different levels of rights and ownership they provide to stockholders. The second way stocks are categorized is based on the types of industry the companies are based in. If a company is an electric automobile marker, then its stock would be considered EV stock. The third way to categorize is by looking at the total worth of all the shares. This is known as the market capitalization of a company or stock. This consists of small-cap, mid-cap, and large-cap stocks. Finally, stocks are categorized based on the different characteristics and trends of the companies, their shares as well as the trends in the overall market economy.

  • What is happening to Daqo New Energy Corp.’s (DQ) stock price?

    There was a decline in the share price of Daqo New Energy Corp. (DQ)  by -4.80% and were trading at a stock price of $53.78 in the current market. DQ stock volume stayed the same at 1.14 million shares, however, this was lower than the average daily volume of the past 50 days which was 3 million shares. Over the last 12 months, there has been a huge rise in shares of DQ by 160.16%, and the last week they have decreased by -12.22%. Shares of DQ have declined by -38.60% over the last three months and in the last six months, the stock’s value has decreased by -41.25%. The outstanding shares of Daqo Energy stand at 71.02 million and their current market value is $4.76 billion.

    Brief introduction about Daqo New Energy Corp.

    Along with its subsidiaries, Daqo New Energy Corp., formerly known as Mega Stand International Limited, sells and produces polysilicon to photovoltaic product manufacturers across China. The polysilicon goes through processing manufacturing. Conversion turns it into wafers, modules, ingots, and cells for solar power solutions. Daqo Energy also offers ready-to-use and packaged polysilicon that meets pulling crucible stacking, and solidification of products. Headquartered in Shanghai, China, Daqo Energy is the number one producer of high-purity polysilicon in the industry of solar PV globally. Daqo Energy originated in 2008 and is currently one of the lowest-cost producers of high-purity polysilicon in the world. Its manufacturing facility in Xinjiang, China has a huge production capacity of 70,000 metric tons of polysilicon.

    Trends in the Polysilicon Industry can potentially hint at growth for DQ stock

    During the time period of 2021-2026, the polysilicon market is expected to grow at an annual growth of over 5% globally. This is primarily due to an increase in the installation of solar photovoltaic installations. During this forecasted time period, the solar photovoltaic industry will expectedly dominate the market. An increase in consumption for countries like India and China will make Asia-Pacific is likely to dominate the market. Asia-pacific will expectedly become the fastest-growing market during this forecasted period.
    According to the International Energy Agency (IEA), the polysilicon industry is one of the fastest-growing industries of the world. It accounts for two-thirds of the worldwide net power capacity.

    By 2030, the share of global renewable energy will expectedly reach 30% as per IEA. These stats show growth potential in DQ stock in the long-term future. Even till the end of the first quarter of 2020, Daqo has been showing promising growth in revenue and liquidity. The installation costs have decreased all over the world. This in turn improves the economic competitiveness of solar photovoltaic. Furthermore, it will boost the overall demand for polysilicon in the years to come.

  • Allied Health Products, Inc. (AHPI) stock plunged in the premarket trading session; here’s why

    In the latest premarket trading session, shares of AHPI had plunged by 1.83% to trade at the price of $6.16. The AHPI stock had surged by 14.42% to close Monday’s session at $6.27. The stock volume traded 5.73 million shares. This was higher than the average trade volume of 4.73 million for the past 90 days. In the past year, AHPI shares have dropped by -43.51% and in the past week, they have dropped by -24.64%. In the past three and six months, the stock has climbed by 29.81% and shed -3.39%. Further, the value of AHPI is currently marketed at $28.40 million. The outstanding shares total 4.01 million.

    A glance into Allied Healthcare Products as a company

    Allied Healthcare Products Inc. is a Medical Devices company. It specifically focuses on the production of respiratory products as well as their marketing. The company enters the health care industry by creating a client base of hospitals as well as site settings worldwide. The AHI stock’s healthcare products include a list of anesthetic products, respiratory products, and oxygen tubing products, facemasks, ventilator circuits, and cannulas. The company also provides a line of disposable and home-based respiratory products which include oxygen cylinders, portable suction equipment, etc.

    The AHPI stock provides medical gas equipment which includes construction products that incorporate development items comprising of in-divider clinical framework parts, focal station siphons, and blowers, and headwalls; guideline gadgets and pull gear including flow-meters, vacuum controllers, and pressing factor controllers, just as related connectors, fittings, and hoses that action, direct, screen, and move clinical gases from walled channeling or hardware to patients; and expendable oxygen chambers to give oxygen to brief periods. It serves clinics, clinic hardware sellers, clinic development project workers, home medical care vendors, crisis clinical items sellers, and others. Associated Healthcare Products, Inc. was consolidated in 1979 and is settled in St. Louis, Missouri.

    A surge in the healthcare market due to delta variant

    The AHPI stock is recently focusing on the production of respiratory care devices. Specifically, Allied Healthcare Products Inc. wants to focus on the massive ventilation demand. This demand has been spiking up due to the coronavirus spike. The delta wave is a new wave that has been surging and causing a new stir in the pandemic. This is leading to new cases of corona-infected people furthermore; the efficacy against the delta strain is being placed into question for the existing vaccines.

    How can this potentially increase the price for AHPI stock?

    With these uncertainties and worries, Allied Heatlhcare Products Inc.’s product offerings especially ventilator systems can be in high need in the healthcare market. In 2020, the company had designed its products that would better handle the increased number of ventilation. These new developments in the market and the pandemic may be the reason behind the surge of healthcare stocks like that of AHPI.

  • Why AIset (AEI) stock is plunging in the premarket trading session

    In the premarket trading session, Alset EHome International Inc.’s shares plunged by -10.86% at the time of writing. The trading price as of now is $4.35. The AEI stock previously closed the session at a loss of -2.79% at the price of $4.88. The volume traded 1.02 million shares. which is lower compared to the past 50 days’ average trade volume of 4.22 million. In the past week, AEI shares have dropped by -1.61%. In the past three and six months, the stock has shed -52.99%and -17.01% respectively. Furthermore, the company is currently valued in the market at $38.70 million and has 8.57 million outstanding shares.

    What you need to know about AIset EHome International Inc.

    AIset EHome Interntional Inc. is a real estate company that specifically focuses on property development. Despite primarily being; AEI has diversified its operations by engaging in transformation technology and health activities. The company’s operations are in the markets of the United States, Singapore, South Korea, Australia, and Hong Kong. 

    Not only does AEI stock engage in the land development, property construction, buying & renting, and management of real estate portfolio, but it also focuses on designing applications intended for enterprises messaging and e-commerce software platforms. set has uniquely positioned itself to actively involve in the BioHealth industry by researching innovative substitutes for natural foods and supplements through the use of nutritional chemistry knowledge. The company also creates therapeutics which slow the spread of disease, treat neurological and immune-related diseases.

    Formerly, the company was known as HF Enterprises Inc. until 2021 and the company was originated in 2018. The headquarter of the company exists in Bethesda, Maryland. AIset was previously a subsidiary company of Hancock Fabrics, Inc.

    AEI stock is seeding its AHR REIT by providing 20 single-family rental homes

    AIset Ehome International Inc. AEI Stock has a majority-owned company known as American Home REIT Inc. (AHR). American Home REIT has created a mission to scale real estate assets which particularly consists of a Class A portfolio of residential real estate properties. Aiset EHome International Inc.’s vision is to create an ecosystem of healthy living and sustainability. The company focuses on this vision to produce an outcome of maximizing long-term value and returns for its shareholders. 

    AEI Stock has recently announced that to further the mission it has created a target of increasing the number of SFR homes by more than 100 homes by the end of 2021. Currently, AIset Ehome has decided to initiate the seeding process of AHR by transferring a single-family rental homes portfolio consisting of 20 such homes occupied on long-term leases.

    Previously the company had announced that it will be strategically partnering with Tesla Inc. to install Tesla PV solar panels in the single-family residences of Northpark Community in Texas.

    The CEO of AIset International believes that AHR is an integral model in the entire ecosystem of the company’s operational portfolio. AHR will be targeting residential real estate assets that have a 5% capitalization rate on net operating income. These assets have an expected potential to pay quarterly dividends up to an 8% annualized yield.