Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

What is Portfolio Turnover and Why Does It Matter? — Finelo Blog
Trading

What is Portfolio Turnover and Why Does It Matter?

Portfolio turnover measures how often the holdings inside a fund or portfolio are bought and sold during a year. A turnover ratio of 100% means the fund replaced the equivalent of its entire portfolio within twelve…

Finelo Team
What is Portfolio Beta and Why Does It Matter? — Finelo Blog
Investing

What is Portfolio Beta and Why Does It Matter?

Portfolio beta measures how sensitive your whole portfolio is to movements in the broad market. A beta of 1 means the portfolio tends to move in line with the market. A beta of 1.3 suggests it moves about 30% more than…

Finelo Team
What is Institutional Ownership and Why Does it Matter? — Finelo Blog
Investing

What is Institutional Ownership and Why Does it Matter?

Institutional ownership is the percentage of a company's shares held by large organizations rather than individual investors. These organizations include mutual funds, pension funds, insurance companies, hedge funds…

Finelo Team
What is Free Cash Flow Yield and Why It Matters — Finelo Blog
Investing

What is Free Cash Flow Yield and Why It Matters

Free cash flow yield measures how much spendable cash a company generates each year relative to what the market charges you to own it. You calculate it by dividing free cash flow per share by the share price, or total…

Finelo Team
What is Earnings Yield and How Can It Impact Your Investments? — Finelo Blog
Trading

What is Earnings Yield and How Can It Impact Your Investments?

Earnings yield tells you how much a company earns per year for every dollar you pay for its stock, expressed as a percentage. You calculate it by dividing earnings per share by the share price. A stock earning $5 per…

Finelo Team
What is Book Value Per Share and Why Does It Matter? — Finelo Blog
Investing

What is Book Value Per Share and Why Does It Matter?

Book value per share (BVPS) is a company's net worth divided across its shares. You calculate it by taking total shareholders' equity, subtracting any preferred equity, and dividing by common shares outstanding. It…

Finelo Team
What is a Secondary Offering? — Finelo Blog
Trading

What is a Secondary Offering?

A secondary offering is a sale of stock that happens after a company has already gone public through its IPO. Either the company issues new shares to raise fresh capital, or existing shareholders sell shares they…

Finelo Team
What is a Risk Parity Portfolio and How Does It Work? — Finelo Blog
Investing

What is a Risk Parity Portfolio and How Does It Work?

A risk parity portfolio is an allocation strategy that balances how much risk each asset class contributes, rather than how many dollars each receives. Instead of putting 60% of the money in stocks and 40% in bonds…

Finelo Team
What is a Rights Offering? A Complete Overview — Finelo Blog
Investing

What is a Rights Offering? A Complete Overview

A rights offering is a capital raise in which a company gives its existing shareholders the right, but not the obligation, to buy additional shares directly from the company, usually at a discount to the market price…

Finelo Team
What is a Market Breadth Indicator and How Does It Work? — Finelo Blog
Chart Analysis

What is a Market Breadth Indicator and How Does It Work?

A market breadth indicator measures how many stocks are actually participating in a market move, rather than how far the index itself has traveled. If an index rises while most of its stocks fall, breadth is weak and…

Finelo Team
What is a Fill or Kill Order? — Finelo Blog
Trading

What is a Fill or Kill Order?

A fill or kill order (FOK) is a trade instruction that must be executed immediately and completely, or not at all. If the market cannot fill the entire order right away, the whole order is cancelled, with no partial…

Finelo Team
What Are Stock Warrants and How Do They Work? — Finelo Blog
Investing

What Are Stock Warrants and How Do They Work?

Stock warrants are contracts issued by a company that give you the right, but not the obligation, to buy its stock at a fixed price before an expiration date. When you exercise a warrant, the company issues new shares…

Finelo Team