What Is Open Interest?

Open interest is the number of unsettled outstanding derivative contracts. Each contract must have a buyer and a seller. It is considered open when a buyer or seller initiates a contract, but a counterparty does not close it by taking …

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What Are Stock Splits?

A stock split is a decision by the company’s board of directors to increase a company’s number of shares, causing a decrease in the stock price and making shares more affordable. A stock split does not change a company’s value …

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What Is Shareholders’ Equity?

Equity, also called shareholders’ equity or stakeholder equity, gives the holder proportional rights to the remaining cash flows after all debts have been paid. The value of equity depends on your perspective and has both a historical value and an …

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