Stock Buybacks: What Every Investor Needs to Know

What all investors need to know about stock buybacks

UPDATED: March 2022

Stock Buybacks: What Every Investor Needs to Know – Investors need to have in-depth information about the market conditions and a company’s performance before they decide to invest in their shares. The current trend right now of stock buybacks among major companies is creating problems for investors. Major corporations are investing all their capital into share repurchase to increase the value of their shares. Hence, any investor that is interested in investing in shares must pay a premium for their investment.

Stock Buybacks: What Every Investor Needs to Know

It is a conundrum for investors since they don’t want to jump in when a company repurchases its shares because that means they must pay more for those shares. Investors need to carefully look at the trends surrounding share repurchase and then invest in companies that haven’t yet decided to repurchase their shares. That will allow them to ride the wave of the price increase and get the most returns from their investment. The current market conditions mean that investors must be wary about stock buybacks, as they can make or break their investments.

How to Profit from Stock Buybacks?

As an investor, it is imperative that you look at the market’s major trends and then base your investment decisions based on that. Stock buybacks had become a hot topic of discussion ever since 2018 when most major companies broke all records of share repurchases. That saw major companies increase their stock prices significantly by spending all their excess cash on stock repurchases. Investors can try predicting another such trend in the coming years and invest in companies looking to repurchase their shares.

That will allow them to maximize their investment as companies will raise their share prices through share repurchase. All investors want to get the most value from their investments, which is why so many investors love share buybacks. That allows them to double their investments in no time, and they can profit significantly from the rise in the value of a company’s stock price.

Is Now the Right Time to Invest?

The current pandemic has hit companies hard, which is why stock buybacks are down this year. It has forced companies to think in the long-term and ride out the storm currently to reap the rewards later. Currently, buybacks are down by 30%, a significant dip if you follow the current trend. That makes it an excellent time for investors to invest in companies because they know that companies will repurchase their shares when conditions improve.

Conclusion of Stock Buybacks: What Every Investor Needs to Know

If you’re an investor and want to learn more about share buybacks and how they can be profitable for you, look at the current trends. The market is suitable for investments as share buybacks are down but for how long remains to be seen.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Understanding the Different Types of Insider Trading

The different types of insider trading you should know about

UPDATED: March 2022

Understanding the Different Types of Insider Trading – The Securities and Exchange Commission (SEC) continues to lead a serious crusade against insider trading, and for good reasons.

Understanding the Different Types of Insider Trading

You need to be clear on the different types of insider trading present today if you are to make it work in your favor. Contrary to popular belief, not all insider trading activities are illegal. To be on the safer side of the law, we will need to go into all the vague details that separate legal and illegal insider trading activities.

Legal vs. Illegal Insider Trading

Legal insider trading happens all of the time. You’ve probably heard of employees of a publicly listed company trading equities of a company they are working in. Insider trading of this nature is perfectly legal as long as corporate insiders report their trades in the correct manner depicted by SEC regulation.

However, illegal insider trading refers to any activity based on corporate information that is not disclosed to the public. Such trading activity undermines everyone’s confidence in the integrity and fairness of the equities market. Additionally, it is deemed as a breach of trust and fiduciary duties of the employee to the company.

In most instances, the line that separates legal and illegal insider trades is clear and obvious. However, there are some cases when that line can be muddied up a bit. For example, when a trader overhears an important conversation between two executives of a company and proceeds to trade the company’s stock based on the information he heard.

You can make an argument of that trade being unethical and unfair since it does make use of information that’s not available to the general public. However, the law doesn’t encompass this scenario, so it is still considered legal.

Types of Illegal Insider Trading

There are certain types of illegal insider trading that you should be aware of if you are thinking about trading in the market today. These include the following:

* Classic Insider Trading

The most widely understood illegal insider trading activities are classic ones where a company’s top-level executive knows undisclosed information of the corporation and buys/sells company stocks based on those non-public materials. The details may vary slightly, but in this instance, it’s a clear-cut illegal insider trading scenario.

* Insider Tipper and Insider Tippee

A common illegal insider trading scenario is when an employee of a company who is privy to essential non-public information doesn’t trade the company’s stock directly. Instead, he passes the information to another person who will use the information to profit from it. In such cases, both the tipper and the tippee are liable for illegal insider trading activities.

*  Misappropriation

Another illegal activity closely related to insider trading is the misappropriation of a company’s information for personal gains. For example, an investor is being invited by an investment banker who is trying to gather capital for a certain company. The investor was asked to sign a non-disclosure agreement.

The banker proceeded to give the investor the company’s state and why it needed to raise capital. The investor refused to take part in the offer, but when the meeting is done, the investor called his broker to sell his shares of the company. The investor is guilty of misappropriating information given to him in confidence and trust.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

3 Myths About How Share Buybacks Affect Stock Performance

The myths surrounding share buyback and their impact on the market

UPDATED: March 2022

3 Myths About How Share Buybacks Affect Stock Performance – For the past few years, companies in the United States have been on a share repurchase spree. This has raised concerns that the current high levels of the stock market are being driven by the appetite of businesses for their stocks. A share buyback-driven stock market may seem vulnerable, but companies have good reasons to buy back their shares. That’s because share buybacks offer companies a suitable way for returning profits to shareholders.

3 Myths About How Share Buybacks Affect Stock Performance

They also manage to boost share prices as demand outnumbers supply and reduces the total number of outstanding shares. The profits are then divided, which increases earnings per share (EPS) and makes the company more attractive for investors. Like other characteristics of stocks, share buybacks can be a major factor for exploiting the stock market to beat long-term returns.

Many investors have concerns about the high numbers of stock repurchases, which have resulted in a lot of misinformation being shared. We will look at 3 of the most concerning myths that have risen and debunk them here for you.

1. Myths About Share Buybacks – Share Buybacks ONLY Represent Short-Term Thinking

The critics of share buybacks claim that companies who buy back their stock are only thinking about short-term gains. That’s mainly down to the fact that they use the cash that’s meant for investment and innovation. Even though share buybacks are high, a recent report from JP Morgan has shown that at 2% market capitalization of the S&P 500, they meet the average for the past 15 years.

The volume of share buybacks has risen, but that’s mainly because companies are making more money, which has raised market capitalization and stock prices. Businesses have also been using cash repatriated after-tax to repurchase stock.

2. Myths About Share Buybacks – Companies Are Never Making the Best Use of Capital

The truth is, even though share prices of stock that are repurchased are higher than their average historically, they are still cheaper than the prices in the market. You won’t get better returns if you are buying cheaply because, after the financial crisis of 2008, companies who bought shares back at discounted prices were lagging behind those who repurchased at higher prices.

Valuations are set by the investors, and deciding to buy back stock is mainly down to the company thinking that their stock offers better value than any investment opportunity at that stage.

3. Myths About Share Buybacks – Companies Always Raise their Debt to Buy Back Shares

This is another myth that stems from the fact that companies borrow funds for share buybacks and capital spending. This trend is expected to catch on, but investors aren’t concerned about this right now. That’s because companies who raise their debt to buy back stock aren’t punished, and they generate similar returns to companies with lower debts.

Conclusion to 3 Myths About How Share Buybacks Affect Stock Performance

Companies that have weak balance sheets have been outperforming those who have debts, and it’s mainly because investors have faith that the company will pay off their debts when their share prices improve after buybacks.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

What Is Insider Tipping, and How Is It Related to Insider Trading?

Learn about insider tipping and why it is still illegal

UPDATED: March 2022

What Is Insider Tipping and How Is It Related to Insider Trading? – Most people know that insider trading is illegal, and they can get jail time if involved in the act. However, they don’t know that insider tipping is also a form of insider trading and can land you in trouble. Insider tipping occurs when you inform someone of a public company’s information that may move its stock price, motivating them to trade the company’s securities.

What Is Insider Tipping and How Is It Related to Insider Trading?

Such actions are considered illegal because the trader gets a tip-off that gives them an unfair advantage over other investors regarding the movement of the stock price, which will occur when the information becomes public knowledge. Insider tipping can occur on the internet, via e-mail, conventional mail, phone call, or in person. The tipping will be considered illegal if the following occurs:

  • The tipper gains an indirect or tangible benefit from the tip
  • The tipper passes the tip with the knowledge that it will profit the recipient
  • The person receiving the insider information knows that the tipper is breaching their fiduciary duty

You need to understand the role you can play as an insider tipper. Passing on information that directly or indirectly benefits the investor to whom you passed the information is illegal and will subject you to a penalty and jail time.

The SEC Takes Insider Tipper Liability Seriously

You can still be accused of insider tipping, even if you didn’t trade yourself and simply passed on the information to someone else. There have been cases where it is clear that federal prosecutors and the SEC take tipping very seriously, especially when it brings about actions of insider trading. You don’t want to be caught on the wrong side of the law when passing on trading information to someone with the knowledge that they will benefit.

Conclusion to What Is Insider Tipping and How Is It Related to Insider Trading?

Insider trading is already illegal, but when you pass on information that can result in insider trading activity, you are accused of partaking in the same activity. Therefore, you can be held liable and be sent to jail for aiding and abetting insider trading. There have been numerous high-profile cases where people involved in insider trading were caught and punished to the full extent of the law.

If you want to avoid insider tipping, make sure that you understand that you will be committing a crime by sharing any information that can benefit a trader if they take appropriate actions. Therefore, it is best to learn how to avoid insider tipping and stay on the right side of the line when it comes to trading activities.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Invest in Silver?

The best ways to invest in silver

UPDATED: March 2022

How to Invest in Silver? – When investing in silver, you should know that it isn’t a true investment since it doesn’t generate a service or product.

How to Invest in Silver?

Silver has value both as an industrial material and a precious metal, but it doesn’t provide a steady income, produce anything, or generates cash flow. If you want to invest in silver, you must approach it as a spectator instead of an investor.

Is Investing in Silver Good?

Throughout time silver wasn’t considered an investment because silver was used as actual money by people. It was used to make everyday transactions, and the wealthy used and held gold. Therefore, silver was referred to as the “poor man’s gold,” and its value remained stable as it was a monetary metal. The U.S. government also minted silver coins until the middle of the 1960s, when the value of silver began rising, it forced the government to withdraw silver from American coins.

Once it was demonetized, silver grew in value quickly, and eventually, it began to be characterized as an investment. As a commodity, silver goes through wild swings, as it either performs spectacularly or does nothing and languishes. You can invest in silver by purchasing the metal and possessing it or buying paper assets connected to silver like silver streaming companies, stocks, funds, etc.

1. Buy Silver Mutual Funds

One of the best ways to invest in silver is to invest in silver mutual funds, which are investments in the stocks of companies that mine silver. You don’t own the metal here, but you participate in the industry that is producing the metal. You can maximize your investments with a silver mutual fund.

2. Buy Silver Bullion

The most direct way to invest in silver is to buy silver bullion, where you can hold possession of the metal. The most convenient way to hold silver bullion is through coins, as you can buy an ounce of pure silver coins, like the Canadian Maple Leaf or American Silver Eagle.

If you want to invest in large quantities of silver, you can buy silver bullion bars, which can be purchased in quantities, ranging from a hundred ounces to an ounce. However, you should know that trading silver bullion bars can be more complicated than trading silver coins.

3. Buy Silver Mining Stocks

You can purchase stocks of companies that mine silver if you want to invest in silver. Instead of buying a portfolio of stocks with a mutual fund, you can buy them directly. However, you should know that environmental catastrophes and international disturbances can impact the price of stocks.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Things to Consider During Blackouts and Quiet Periods

What all investors should do during blackouts and quiet periods in insider trading

UPDATE: March 2022

Things to Consider During Blackouts and Quiet Periods – Even though there are several rules and regulations surrounding insider trading activity, investors must be wary about what to do during insider trading blackouts and quiet periods. They are both important policies that must be understood and implemented accordingly. If you are a company executive and insider, you must know how these periods will affect you and your legal obligations. So, here are some of the things you must consider during blackouts and quiet periods.

Insider Trading Blackout Periods

When a company implements a blackout period, corporate insiders will not be allowed to buy and sell company shares during this period. The restrictions are implemented to reduce the risk of insider trading by insiders who have access to nonpublic information. There are two main categories of blackout periods that insiders must be aware of:

1. Quarterly Blackout Periods

Most companies choose to implement a quarterly blackout period for all insiders and employees before releasing their financial statements and earnings reports to the public. These blackout periods will begin from the first day of the end of a quarter and end two days after the financial reports have been released to the public.

2. Specially Mandated Blackout Periods

There are instances when a company may choose to impose a special blackout period to prevent insiders from trading company shares before a major announcement that may affect the company’s share price. That could be mainly before a merger or when a company is introducing a new product.

Insider Trading Quiet Periods

An insider trading quiet period will be implemented by a company when they want to limit the interactions with the public because insiders may have access to nonpublic information. The company generally implements a quiet period before it plans to make a major announcement regarding the company’s future.

Companies choose to implement insider trading quiet periods because they don’t want material information to become public knowledge before they announce it. The intention behind blackout periods is that the company wants to prevent corporate insiders from trading in the market before any information is released to the public. Therefore, as an insider, it is best to follow the rules related to blackouts and quiet periods and ensure that you don’t end up on the wrong side of the law.

Conclusion to Things to Consider During Blackouts and Quiet Periods

Suppose you are an insider and unwillingly trade in the market during a blackout period or interact with the public during a quiet period. In that case, you could be subjected to financial penalties from the company. You can also be released from your position in the company. Hence, you should always be careful and follow the rules during blackouts and quiet periods.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Invest in Cryptocurrency

The best ways to invest in cryptocurrency

UPDATED: March 2022

How to Invest in Cryptocurrency – When it was first introduced in 2009, Bitcoin was considered to be nothing but a fascinating phenomenon. However, futurists and technicians saw the immense potential of cryptocurrency and how it will shape future markets. Even though there was interest generated by cryptocurrency, no one looked at them as an investment opportunity. Part of the reason behind that was because there was little to no government regulation surrounding cryptocurrency.

How to Invest in Cryptocurrency

Fast forward to the current day, and cryptocurrency is ruling the roost and everyone wants to get their hands on it. It is seen as the future of all money transactions, and even though banks and governments still have limited regulations set in place for cryptocurrencies, its value has sky-rocketed. People want to invest in cryptocurrency due to its value and how it is expected to increase further. If you are someone who wants to invest in cryptocurrency, you have come to the right place. We share everything you need to know to invest in cryptocurrency.

How Cryptocurrencies Work and What Are They?

Cryptocurrency is built around blockchain technology, a chain of information distribution and registration that a single institution doesn’t control. It works as recorded digital transactions which the central banks don’t control. Understanding blockchain technology can be complicated, but in simple terms, it removes the middleman, like the bank, and allows business transactions between buyers and sellers individually. That serves to eliminate any transaction fees, and that is part of the appeal of cryptocurrency.

Bitcoin is the most prominent cryptocurrency whose price is tracked regularly in the financial media. However, there are hundreds of cryptocurrencies, which makes investing in them complicated. There are two main reasons cryptocurrency is so attractive to investors:

  • You can use and own it anonymously
  • It experiences price explosions, which make it feel and look like an investment

Investors who bought cryptocurrency before the 2017 price explosion and the recent 2020 price increase have benefited from their investment. So, what should you do if you want to invest in cryptocurrencies? Find the answer below.

Investing in Cryptocurrencies

You can’t buy cryptocurrency from a brokerage firm or a local bank because financial institutions don’t fully understand and trust cryptocurrency. As it is unregulated by the government, most financial institutions refuse to deal with cryptocurrencies, so it still functions within its network right now. Here are our tips for investing in cryptocurrency:

* Make It a Small Part of Your Investment Portfolio

You should make cryptocurrency a small part of your investment portfolio, even though the price of Bitcoin is going through the roof. You shouldn’t invest more than 5% or 10% because investing in cryptocurrency isn’t the same as investing in stocks. It doesn’t pay you dividends or interests like silver and gold because cryptocurrencies were designed to be mediums of exchange.

* Choose The Cryptocurrency You Want to Invest In

One complication you will face when investing in cryptocurrency is that there are hundreds and even thousands of different options. The entire concept of cryptocurrency only started a decade ago, and you need to be careful when looking to invest in it. Bitcoin is the largest and most reliable cryptocurrency available right now, followed by Ethereum.

NOTE: For More Detailed information on How to Invest in Cryptocurrency, see the excellent article Crypto Trading For Beginners – How To Profit 5 Ways .

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Should You Invest in Physical Gold?

Deciding whether you should invest in physical gold

UPDATED: March 2022

Should You Invest in Physical Gold? – Even though physical gold offers you one of the best ways to diversify your portfolio, you also get a tangible and solid asset that may help you when times get tough. Due to its reliability, many investors consider investing in gold. It’s not only a safer option but also gives them great returns on their investment.

Should You Invest in Physical Gold?

As with any investment, you must consider the drawbacks associated with it. So, if you’re wondering if you should invest in physical gold, you’ve come to the right place. We will weigh the pros and cons right here.

1. Finding a Place to Store Physical Gold

If you choose to invest in physical gold, figure out where you would want to store it. Will you store it at a big safe at home where you can keep your collection of gold coins? You can also choose to store it in a safe deposit box at the bank as well. However, in both cases, your gold will be vulnerable to theft. Most people don’t have the means to store their physical gold, and some people prefer to have a pooled account that helps them keep their physical gold safe.

You can keep your gold in a vault, and you will get a numbered coin or bar allocated to you, or you will get a record of the exact gold that has been assigned to you. If you choose to store your gold with an allocated account, you will need to pay an insurance fee and a storage fee. If you have an unallocated account, you won’t need to pay much in fees, but your gold will remain in the company’s name, which puts you at risk if the company goes out of business and the creditors get their hands on your gold.

So, if you store gold onsite, you risk the threat of your gold being stolen, and if you choose to keep it offsite, you may not get access to it when you want it.

2. What Will You Use Investing in Gold For?

Most people consider gold to be “pure money” since it has been used as a medium of exchange for centuries. Many people are tempted to buy physical gold since it offers them a great way to protect themselves from an economic collapse. However, if the global market collapses and there is a financial meltdown, who will be in a position to buy your gold?

When the entire system breaks down, gold won’t be valuable as a commodity to barter items. You can’t use gold for shelter or clothing, and you can’t eat it. Ask yourself; who will accept your gold in exchange for survival items because, in these situations, gold won’t help you.

Conclusion of Should You Invest in Physical Gold?

When deciding whether to purchase physical gold or invest in physical gold, ensure you are investing for the right reasons and know the consequences of your investment. Having tempered expectations will ensure you can make the best, informed choice for yourself regarding investing in gold.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Insider Trading: How to Stay Out of Trouble

Understanding what is insider trading and how you can avoid getting into trouble

UPDATED: March 2022

Insider Trading: How to Stay Out of Trouble – Everyone knows that owning company stock carries financial risks. However, it comes as a surprise to many employees that trading company stock can actually get you into serious legal trouble, including criminal liability.

Insider Trading: How to Stay Out of Trouble

Two major ways in which you can, even accidentally, break the securities laws are called insider trading and insider tipping. This article will explain what you need to know to stay out of trouble when you trade any company’s stock.

The Basics of Insider Trading and Tipping

There’s no doubt in anyone’s mind that insider trading is illegal. It occurs when someone trades stock or other securities on the basis of what is termed material nonpublic information (MNPI). MNPI is confidential, proprietary information about a company that will affect its stock price either positively or negatively when the information is made public.

Insider tipping is also illegal. It means sharing MNPI with others. The laws against insider trading and tipping apply to everybody. They don’t apply only to company insiders or executives, though their positions tend to put them at more risk than ordinary employees.

Insider trading and tipping are considered violations of securities law because they give certain people an unfair investment advantage over other investors and therefore undermine the fair operation of the capital markets. If the capital markets were to lose public trust and confidence, the investment would fall, to the detriment of companies and the economy.

What Constitutes Insider Trading?

The insider trading laws apply to MNPI not only about a company you work for but also about any company you may know through a professional or personal relationship, e.g., through a family member who works for that company or through your company’s vendor, supplier, or client. The SEC now wields a formidable array of digital technology to spot, track, and examine links between people involved or connected with suspicious stock trading activities.

The SEC uses sophisticated data analytics, including pattern recognition, to detect suspicious stock trading. The SEC’s ATLAS tool lets the agency’s staff harness multiple streams of data, including blue sheets, pricing, and public announcements. The tool is routinely used to look for insider trading before a major equity event, detect serial insider trading, and research historical securities prices for litigation.

What is Insider Tipping?

Insider tipping is illegal and closely related to insider trading. It means sharing MNPI (Material Non-Public Information) about a public company that may motivate the recipient to trade that company’s securities (e.g., shares or call options). This is illegal because the tipped-off trader gains an unfair advantage over other investors from the movement of the stock price that will occur when the information is made public.

Insider tipping can occur in person, by phone, via the mail, by email, or on the internet. The tipping is illegal if:

  • The person who receives the inside information knows or has a reason to believe that the tipper is breaching a fiduciary duty.
  • The tipper gets some tangible or indirect benefit from the tipping.
  • The tipper passes on the tip with the expectation that the recipient will try to profit from it.

When you tip someone, e.g., a friend or a relative, who then trades securities according to the inside information, you may be held accountable for up to three times the profit gained or loss avoided, plus disgorgement of the trading plans if your tipper can’t pay.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

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