What Is the VIX? The Fear Index, Explained
The VIX measures S&P 500 implied volatility over 30 days. Learn how it is calculated, what levels signal fear vs calm, and how investors use it.
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.
What Is the P/E Ratio? And When Does It Mislead?
The P/E ratio divides stock price by earnings per share — but it breaks for unprofitable companies, cyclical earnings, and cross-sector comparisons. Here is what it actually tells you.
Beta, Alpha, and the CAPM: What These Numbers Measure
Beta measures market sensitivity, alpha tracks excess return. Here’s what these numbers mean and four ways CAPM breaks down in practice.
The Yield Curve: What It Is and Why Inversion Matters
Understand the yield curve, what causes inversions, and why they have preceded every U.S. recession since 1955. Includes today’s snapshot.
How an IPO Actually Works: S-1, Bookbuilding, Greenshoe
From S-1 filing to first-day pop: how an IPO actually works, covering bookbuilding, the greenshoe stabilization option, and lock-up periods.
How to Read an Earnings Report: Revenue, EPS, and Guidance
Learn how to decode a quarterly earnings report — revenue, EPS, guidance, and beat vs. miss — with real Apple examples and verified data.
Leveraged Buyouts 101: How Private Equity Finances Mega-Deals
A leveraged buyout uses debt to amplify equity returns. Learn how LBO capital structure, IRR targets, covenants, and exit strategies actually work — with a full worked example.
Stock Buybacks vs. Dividends: How They Affect Your Return
Learn how stock buybacks and dividends both return cash to shareholders, how each affects EPS and stock price, and which companies favor each approach.
What Is Post-Earnings Drift? Whisper Numbers Explained
Learn why stocks keep moving after earnings reports. Understand whisper numbers, post-earnings drift (PEAD), and how these forces drive market moves every quarter.
EPS, Diluted EPS, and Non-GAAP Earnings Explained
Learn how basic EPS, diluted EPS, and non-GAAP adjusted earnings are calculated—and why each number tells a different story during earnings season.