FinWiz

Market Structure

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

22 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.