FinWiz

Market Structure

IPOs, market cap, short selling, float, and market mechanics

57 articles in this category

beginner10 min read

What Is an IPO? How Initial Public Offerings Work

An IPO is when a private company sells shares to the public for the first time. Learn the full process, risks, and strategies for trading IPOs.

intermediate10 min read

Penny Stocks: What They Are, Risks & How to Trade Them

Penny stocks are cheap but extremely risky. Learn the dangers of pump and dump schemes, low float traps, and how to approach them if you choose to trade.

beginner8 min read

Market Cap Explained: Mega, Large, Mid, Small & Micro Caps

Market cap classifies stocks by total value. Learn the tiers from mega-cap to micro-cap and how market cap affects volatility, liquidity, and risk.

intermediate11 min read

Short Selling: How It Works, Risks & Mechanics

Short selling lets you profit when stocks fall. Learn the mechanics of borrowing shares, the risks of unlimited loss, and how short squeezes happen.

beginner8 min read

Stock Float: Why Low-Float Stocks Move More

A stock float is the number of shares available to trade. Learn why low-float stocks have explosive moves and how to use float in your scanning.

beginner7 min read

Stock Splits: What They Are & How They Affect Your Shares

Stock splits divide shares into more units at a lower price. Learn how regular and reverse splits work and whether they create trading opportunities.

intermediate10 min read

Margin Trading: How It Works, Risks & Margin Calls

Margin trading lets you borrow money from your broker to increase position sizes. Learn how leverage works, margin call triggers, and risk management.

beginner7 min read

Blue Chip Stocks: What They Are & Why Traders Watch Them

Blue chip stocks are large, financially stable companies with reliable track records. Learn their characteristics and how traders use them for lower-risk plays.

beginner8 min read

Bid-Ask Spread: What It Tells You About Liquidity

The bid-ask spread is the difference between buy and sell prices. Learn how it reflects liquidity and how it impacts your trading costs.

advanced9 min read

Dark Pools: What They Are & How They Affect Stock Prices

Dark pools are private exchanges for large institutional trades. Learn how they work, why they exist, and how dark pool data can inform your trading.

intermediate10 min read

Short Interest: How to Read & Trade Short Squeeze Setups

High short interest can lead to explosive short squeezes. Learn to read short interest data, days to cover, and identify potential squeeze setups.

intermediate9 min read

Market Makers: Who They Are & How They Influence Prices

Market makers provide liquidity by continuously quoting bid and ask prices. Learn who they are, how they profit, and how they influence stock prices.

intermediate9 min read

What Is a SPAC? Blank Check Companies Explained

SPACs are blank check companies that raise money through an IPO to acquire a private company. Learn how they work, their risks, and how to evaluate them.

intermediate9 min read

OTC Stocks: What They Are, Risks & How to Trade Them

OTC stocks trade off major exchanges and come with unique risks. Learn how the OTC market works, the different tiers, and how to trade them safely.

intermediate9 min read

Direct Listing vs IPO: How Companies Go Public Without Underwriters

Direct listings let companies go public without underwriters or new share issuance. Compare this approach to traditional IPOs and what it means for you.

intermediate9 min read

Secondary Offerings & Stock Dilution: What Happens to Your Shares

Secondary offerings increase shares outstanding and can dilute existing shareholders. Learn how they work, why companies do them, and how price reacts.

intermediate9 min read

Share Buybacks: Why Companies Repurchase Their Own Stock

Share buybacks reduce outstanding shares and can boost EPS and stock price. Learn why companies do them, how they work, and whether they help investors.

beginner8 min read

Trading Halts & Circuit Breakers: Why Stocks Get Halted

Trading halts pause a stock to prevent panic and ensure fair markets. Learn the different types of halts, why they happen, and how to handle them.

beginner9 min read

Pattern Day Trader Rule: $25K Requirement & How to Avoid It

The Pattern Day Trader rule requires $25K in your account to day trade freely. Learn how it works, when it applies, and legitimate ways to work around it.

intermediate9 min read

ADR Stocks: How to Trade Foreign Companies on US Exchanges

ADRs let you trade foreign companies on US exchanges in US dollars. Learn how they work, the different levels, currency risk, and tax implications.

beginner7 min read

When Does the Stock Market Open? Market Hours Worldwide

The US stock market opens at 9:30 AM ET and closes at 4:00 PM ET, but trading happens beyond those hours. Get the full schedule including global markets.

intermediate8 min read

Stock Warrants vs Options: Key Differences Explained

Stock warrants and options look similar but differ in key ways. Learn how warrants are issued, how they dilute shares, and how they compare to options.

intermediate12 min read

Short Squeeze: How It Works, Famous Examples & How to Trade It

When short sellers get trapped and rush to cover, prices spike violently. Here's how a short squeeze works.

beginner11 min read

Types of Stocks: Common, Preferred, Growth, Value & More

Growth, value, income, blue chip, penny — stocks are classified in many ways. Here's a complete breakdown.

intermediate10 min read

How the IPO Process Works: From Filing to First Trade

An IPO turns a private company into a public one. Here's every step from S-1 filing to the first trade on the exchange.

intermediate9 min read

SEC Filings Explained: 10-K, 10-Q, 8-K & 13F for Traders

SEC filings are treasure troves of data — if you know what to look for. Here's a guide to the most important ones.

intermediate8 min read

Shares Outstanding vs Float: What's the Difference & Why It Matters

Shares outstanding includes all shares. Float excludes insider and restricted shares. Low float stocks move faster.

beginner6 min read

How Many Trading Days in a Year? Market Calendar Explained

There are about 252 trading days in a year. Here's the breakdown, plus market hours and holidays that affect your trades.

beginner6 min read

Stock Market Holidays 2026: Full Calendar & Early Closes

The stock market closes for 9 federal holidays and has 2 early close days in 2026. Here's the full calendar.

beginner7 min read

Reverse Stock Split: What It Means & Why Companies Do It

A reverse stock split consolidates shares — 1-for-10 turns 100 shares at $1 into 10 shares at $10. Your total value stays the same.

intermediate9 min read

What Is Insider Trading? Legal vs Illegal & How to Track It

Not all insider trading is illegal. Executives buy and sell shares legally — and tracking their moves can be informative.

beginner7 min read

Most Expensive Stocks: Why Some Shares Cost Thousands

Berkshire Hathaway costs over $500K per share. But high price doesn't mean overvalued — it means they never split.

intermediate9 min read

Circuit Breakers & Limit Up/Limit Down: How Markets Prevent Crashes

Circuit breakers halt the entire market during extreme drops. LULD halts individual stocks. Here's how the rules work.

beginner8 min read

Bid and Ask Price: What They Mean & How the Spread Works

Every stock has a bid price and ask price. The gap between them — the spread — is a cost you pay on every trade.

beginner9 min read

What Is a Spread? Bid-Ask, Options & Trading Spreads Explained

Spread has multiple meanings in trading — bid-ask, options spreads, and more. Learn what each one means.

beginner9 min read

Margin Account vs Cash Account: Which Should You Use?

Cash accounts require full payment. Margin accounts let you borrow. Learn the rules, risks, and which is right for your trading style.

beginner8 min read

Secondary Market: Where Stocks Actually Trade After the IPO

The secondary market is where stocks trade after the IPO. Learn the difference between primary and secondary markets.

beginner9 min read

Stock Exchanges: NYSE, Nasdaq & How They Work

Stock exchanges match buyers and sellers. Learn how the NYSE and Nasdaq work and what happens when you place an order.

beginner8 min read

SIPC Insurance: How Your Brokerage Account Is Protected

SIPC insures your brokerage account up to $500,000 if the broker fails. Learn what is covered and what is not.

intermediate9 min read

OTC Pink Sheets: The Riskiest Corner of the Stock Market

Pink sheet stocks trade OTC with minimal regulation. Learn the risk tiers, the dangers, and why most traders stay away.

intermediate8 min read

Short Sale Restriction (SSR): What Triggers It & How It Works

SSR activates when a stock falls 10% in a day, restricting short selling to upticks only. Learn how it works and how traders adapt.

advanced10 min read

Gamma Squeeze: How Options Market Makers Fuel Price Spikes

A gamma squeeze forces market makers to buy more stock as prices rise, creating an accelerating feedback loop.

beginner8 min read

Buy to Cover: How Short Sellers Close Their Positions

Buy to cover closes a short position by buying back borrowed shares. Learn the mechanics and when short sellers cover.

beginner9 min read

Consumer Staples: The Defensive Sector Traders Watch in Downturns

Consumer staples sell essentials people buy in any economy. Learn why this sector is defensive and how traders use it.

intermediate10 min read

Emerging Markets: Higher Growth, Higher Risk & How to Access Them

Emerging markets offer faster growth but higher risk. Learn what defines them and how to get exposure through ETFs and stocks.

intermediate9 min read

SEC Form 4: How to Track Insider Buying & Selling

Form 4 shows when insiders buy or sell their company's stock. Learn how to read filings and what insider activity signals.

beginner10 min read

Central Banks: How the Fed & Others Move the Stock Market

The Fed and other central banks set interest rates and control money supply. Learn how their decisions move every market.

intermediate9 min read

Fed Tapering: What It Means & How It Affects Your Portfolio

Tapering means the Fed is slowing its bond purchases. Learn why it matters and how markets typically react.

intermediate9 min read

Payment for Order Flow (PFOF): How Brokers Make Money on Free Trades

Brokers sell your order flow to market makers. Learn how PFOF works and whether it costs you money on execution quality.

advanced10 min read

How to Use Dark Pool Data: Short Volume, Block Trades & Signals

Dark pool data reveals what institutions are doing. Learn to read dark pool prints, short volume, and block trade signals.

intermediate10 min read

Biotech Stocks: What Makes the Sector Unique for Traders

Biotech stocks move on FDA decisions, trial data, and pipeline catalysts — not earnings like most sectors.

beginner9 min read

Margin Account vs Cash Account: Key Differences Explained

Margin accounts offer leverage but add risk. Cash accounts keep it simple. Here are the key differences.

beginner8 min read

Shares Outstanding vs Float: What Traders Need to Know

Shares outstanding counts every share issued. Float is what actually trades on the open market.

beginner8 min read

Primary vs Secondary Market: Where Securities Are Born & Traded

New shares are created in the primary market. After that, they trade between investors in the secondary market.

intermediate10 min read

SPAC vs IPO: Two Paths to Going Public

IPOs follow the traditional underwriting process. SPACs offer a faster, less regulated route to public markets.

intermediate9 min read

IPO vs Direct Listing: How Each Path to Public Markets Works

IPOs issue new shares and raise capital. Direct listings skip the underwriter and let insiders sell existing shares.

beginner9 min read

What Are Shares Outstanding?

Shares outstanding represents the total number of issued shares held by shareholders — the basis for calculating EPS, market cap, and ownership percentages.