Author Archive

RBA Keeps Interest Rates on Hold as Global Economy Collapses »

The RBA has left interest rates on hold today on the back of overnight global woes. Most noticably, the Statement by Glenn Stevens states (in summary) the following: World economy has remained very weak following decreases in demand late last year Conditions in global credit markets have improved since November last year, but remain fraigle [...]

Theories of Capital Structure »

I thought it would be useful to look at some of theories of capital structure and what their purpose is, how they apply to companies and whether we really need to know about them as investors. Evidently, the later part of this statement is true – all parts of finance are indeed useful – and [...]

HY Markets »

It’s thanks to sponsors like HY Markets that keep Small Stocks alive – they sponsor us and allow us to keep providing useful market information and education to all our readers in addition to keeping our servers running. If you have the time, please check them out. They offer competitive services such as: Allowing their [...]

How Short Selling Works »

I have had a number of people write to me over the last few days asking how exactly short selling works and whether I can provide an example. This is a great question and often confuses many traders and investors alike in the market. The primary reason for this is the logic behind selling and [...]

RBA Slashes Rates by 100 Basis Points, Government $42 Bil Package »

The good news is that the RBA has slashed interest rates by 100 Basis Points to a new modern era low of 3.25% – the lowest since 1964. So what does this mean for the average Australian ? Well, the good news is that on a 30-year typical $300K homeloan, a $170 bucks a month [...]