What Is the P/E Ratio and When Does It Mislead You?
P/E ratio formula, trailing vs forward, sector benchmarks, Shiller CAPE, and the five cases where price-to-earnings flat-out misleads investors.
investing basics
How an IPO Actually Works: S-1, Bookbuilding, Greenshoe
How a company goes public, step by step: the S-1 filing, bookbuilding, share allocation under FINRA Rule 5130, and the greenshoe that stabilizes the first weeks of trading.
Short Selling and Short Squeezes Explained: How They Work
How a short sale actually works — locate, borrow, margin — and why a crowded short can flip into a squeeze that prints $483 GameStop.
Yield Curve Explained: Shapes, Inversion, Recession Signal
What the Treasury yield curve is, what each shape means, and why inversion has preceded every U.S. recession since the late 1960s.
Bond Duration and Convexity Explained: Why Prices Fall
Duration tells you how much a bond’s price moves when yields shift 1%. Convexity tells you how much duration is lying. Formulas, example, traps.
Venture Capital Explained: Stages, Term Sheets, and Down Rounds
How VC actually works: seed through growth, what’s in a term sheet, how dilution stacks up round by round, and what happens when a down round hits.
Whisper Numbers and PEAD: Why Beats Drift After Earnings
What earnings whisper numbers are, what post-earnings announcement drift (PEAD) is, and why a ‘beat’ sometimes sends a stock lower.
Options Greeks Explained: Delta, Gamma, Theta, Vega, Rho
What the option Greeks actually measure, with a worked Black-Scholes example and a clear table showing how delta, gamma, theta, vega, and rho behave.
What Is WACC? Cost of Capital Formula and Worked Example
WACC blends a company’s cost of equity and after-tax cost of debt by their weights in capital structure. The formula, a worked example, and the traps.
Leveraged Buyouts Explained: Capital Structure and IRR
How LBOs work: capital structure, the IRR math behind private-equity returns, and the deals that defined the playbook from RJR Nabisco to Electronic Arts.