Capital Structure Waterfall: Who Gets Paid First in Default
Senior debt, subordinated bonds, preferred stock, common equity — here is the exact order claims get paid when a company defaults, with the GM 2009 worked example.
Market Education
Learn how stocks, bonds and capital markets work. Explore plain-English explanations, worked examples and charts, then follow related coverage to connect market concepts with current events. Find your way around ECMSource.
Options Greeks Explained: Delta, Gamma, Theta, Vega, Rho
What delta, gamma, theta, vega, and rho actually measure — with worked examples, typical ranges, and the mistakes traders make.
Bond Duration Explained: Why a 1% Rate Move Wrecks Long Bonds
Duration is the single number that explains why a 30-year Treasury can lose roughly 16% in a year when yields rise 1%. Here is how it works, with current data.
Carry Trade Explained: How It Works and Why It Blows Up
How the carry trade works in plain English: borrow in a low-rate currency, invest in a higher-yielder, pocket the spread — and what causes the unwinds.
PEG Ratio Explained: When Growth Justifies a High P/E
PEG = P/E / earnings growth. Below 1 is the classic Lynch rule. Why the metric helps with growth stocks — and where it misleads.
Money Market Funds Explained: How They Work and Real Risks
Money market funds hold a record $7.89 trillion. Here’s how MMFs work, what drives their yields, the 2023 SEC reforms, and where the real risks hide.
Term Premium Explained: Why Long Bonds Yield Extra
Term premium is the extra yield bonds pay beyond expected short rates. Here’s how the NY Fed measures it and what’s pushing it higher in 2026.
Stock-Based Compensation Explained: GAAP vs Non-GAAP
Stock-based compensation is real money. How RSUs and options get expensed, why tech excludes SBC from non-GAAP EPS, and how buybacks paper over the dilution.
SEC Filings Explained: 10-K, 10-Q, and 8-K
Every U.S.-listed company files three core reports with the SEC. Here is what each one contains, when it is due, and what to read first.
Order Types Explained: Market, Limit, Stop, Trailing Stops
Market, limit, stop, stop-limit, and trailing stops explained — what each order does, when to use it, and how each one can quietly cost you on the fill.