How do you measure the strength of a stock? Try the relative strength index (RSI). Lots of charts and graphs. The price of a stock is graphed over a period of days, months, or years. Everything is put on a scale of 0–100, and analysts start paying attention when the stock prices go above the 70 mark or below the 30 mark. The idea is that too many peaks and valleys or lots of ups and downs...is bad news. As is the satisfaction gained from a Saturday night date. Everything is relative.
Well, the same is true in the stock market. And generally speaking, when viewing any given stock, its performance is mapped against the overall market. And for most Wall Streeters, the overall market is defined as the S&P 500, more or less.
So if the market was up 20% in a given period, and your stock was only up 10%...then, sadly for you, even though 10% in a short period of time is a nice gain, it was relatively…meh. Not so great. By the same token, if the market was down 20% in that same period, and your stock were only down 5, then woot squared for you: your stock was relatively strong.
And yeah, you want to know that a stock you own is reliably, steadily strong, and not all over the place. Extreme hills and valleys are great on a ski vacation. Investing in the stock market? Not so much.
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Finance: What are lenders?27 Views
finance a la shmoop what are lenders is that a bagel company hmm okay well maybe
it doesn't matter here lenders are the people and institutions
and countries who loan money banks are lenders they loan money for small [woman walks into bank]
business for big business and well everything in between
banks are big lenders they generally focus on large amounts for big
corporations and take their spread then you have savings and loans well they're
smaller more intimate local cousins of the banks and they focus on local loans
like your local flower shop needs 25 grand in credit but lenders also sell a [flowers in a store]
special kind of loan a mortgage for when you want to buy a home and the interest
on mortgages is distinctively tax-deductible your big brother can also
be a lender that hundred bucks he loaned you yeah is not like the hundred that [sister approaches big brother]
grandmama quote loaned you unquote ie Big Brother's long does not just get
naturally forgotten his alone carries interest in newgy penalties when it's [fist appears as sister smiles]
not paid back to lenders it's people who loan money lending loaning got in there
kind of related [sister being nuggied]