Finelo Blog
Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.
SPAC Warrant Checklist: Redemption, Cashless Exercise, and Dilution
This guide is for investors reading a specific SPAC or de-SPAC warrant agreement. It does not duplicate a general “what is a warrant?” explainer. Warrant economics depend on the filed agreement, amendments, registration…
SMA vs EMA: A Detailed Comparison of Moving Averages
The short answer: a simple moving average (SMA) weights every price in its lookback window equally, while an exponential moving average (EMA) gives more weight to recent prices, so the EMA reacts faster to new moves and…
Rights Offering Math: TERP, Dilution, and the Exercise Decision
This guide focuses on the shareholder math after a rights issue is announced. It complements rather than repeats a general rights-offering overview. The actual prospectus controls the subscription ratio, price,…
Return on Assets (ROA): Formula, Interpretation, and Limitations
Return on assets compares period net income with average total assets over the same period. A company earning $50 million on $1 billion of average assets has a 5% ROA. The ratio is an accounting return measure, not proof…
How to Reconcile Net Income to Operating Cash Flow
This article focuses on the reconciliation inside the cash-flow statement rather than repeating a general net-income-versus-free-cash-flow comparison. Under the indirect method, the company starts with net income and…
Put Call Ratio: What It Is and How Traders Read It
A put/call ratio divides put contracts by call contracts for a defined product universe, venue set, and measure such as volume or open interest. Above 1.0 only means the counted puts exceeded calls; it does not identify…
Protective Put Strategy: How It Works and When to Use It
A protective put combines owned shares with a put that gives the holder the right to sell the matching shares at the strike price during the option's exercise period. The premium buys a defined payoff floor while the…
Portfolio Correlation: What It Is and How to Use It
Portfolio correlation measures how the assets in your portfolio move in relation to each other, on a scale from +1 (they move together) to −1 (they move opposite). It is the math behind diversification: combining assets…
Option Greeks Explained: Delta, Gamma, Theta, Vega, and Rho
Option Greeks are model-derived estimates of how an option's theoretical value responds to small changes in specified inputs: delta (underlying price), gamma (the change in delta), theta (time), vega (implied…
Operating Income vs. Net Income: Key Differences That Matter
Operating income is the profit a company earns from its core business after operating expenses, while net income is what remains after every cost - interest, taxes, and one-time items included. Comparing operating income…
Net Margin Bridge: Explaining Tax, Interest, and One-Off Changes
This article assumes the reader knows net margin = net income ÷ revenue. Its distinct purpose is to reconcile a change in net margin from operating performance through financing, taxes, noncontrolling interests,…
Margin Call Explained: What Every Investor Should Know
A margin call is a demand from your broker to add cash or securities to your account because your equity has fallen below the required minimum for positions bought with borrowed money. If you do not meet the call in…
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