- A Guide to Reading Stock Tickers
If you’ve ever watched a financial news program or visited a website that covers the stock market, you might notice an endlessly cycling parade of numbers, symbols and abbreviations. These collectively make up a stock ticker, which provides snapshots of… read more…
- What Is an Endowment, and How Do They Work?
An endowment is comprised of money donated to a non-profit organization. This sum of money is typically placed in an endowment fund, which is then invested. The return from those investments are used to fund the organization’s operations or grow… read more…
- What is Private Equity and What Do Private Equity Firms Do?
If you have a diverse investment portfolio you’ve probably bought publicly traded stocks on the open market. But some investors operate in an alternate, well-funded investment universe. In the world of private equity, well-funded investment firms make big investments in… read more…
- Why the Consumer Price Index (CPI) is Important
The consumer price index (CPI) is an economic term you’ve probably heard before but may not know much about. It’s importance has risen since President Biden’s trillion-dollar spending initiatives aimed at countering the effects of the pandemic. And the April 2022 CPI report of a 8.3% jump from April 2021 has only furthered interest in… read more…
- What Is a Prospectus, and How Do You Read One?
In investing, a prospectus is a legal document that describes an investment security to potential investors. Required by the U.S. Securities and Exchange Commission (SEC), a prospectus contains facts about the company or fund issuing the security. This can include… read more…
- What Is the Face Value of a Bond and How It Differs From Market Value
Bonds are a type of debt security used by government entities and corporations to raise money. Every bond come with a face value, which is sometimes called a par value. This number indicates what the bond will be worth at maturity,… read more…
- How to Find the Market Capitalization of a Company
Market capitalization, often abbreviated as market cap, is a measure of a public company’s overall value of its shares of stock as set by the market. Market cap can be used to compare companies, or to measure success over time.… read more…
- What Earnings Per Share (EPS) Tells Investors
Earnings per share, or EPS, is a financial measurement that tells investors if a company is profitable. You can calculate EPS by determining a company’s net income and dividing it by the number of its outstanding stock shares. Savvy investors… read more…
- How After-Market Trading Works (and How to Do It)
Many investors assume that once the closing bell rings, stock trading is over for the day. However, the market doesn’t necessarily shut down at 4:00 PM Eastern Time. After-market trading, also known as after-hours trading, continues into the late afternoon and evening, often extending until 8:00 PM. During this period, investors can buy and sell… read more…
- How Does a Rights Offering Work?
You may be well-versed in the differences between stocks and bonds or how exchange-traded funds (ETFs) work, but a rights offering is one investing term you may not be as familiar with. A rights offering allows a company’s shareholders the… read more…
- Pooled Investment Vehicles: Definition and Types
A pooled investment vehicle is one way to put your money into the stock market alongside other investors. There are several ways to pool money to invest if you’re looking for an alternative to trading individual stocks. Some are better… read more…
- An Investor’s Guide to Risk Tolerance
Risk tolerance refers to an investor’s ability and willingness to endure market volatility and potential losses in pursuit of financial goals. It is influenced by factors such as age, income, financial obligations and overall investment objectives. Understanding your risk tolerance helps align your investment strategy with your comfort level and long-term financial plan, allowing you… read more…
- What Assets Are Considered Investable Assets?
Your net worth is a good way to determine how much value you hold, but investable assets might be a better measure. And if you’re considering working with a financial advisor, it’s smart to know what your investable assets are and how much you actually have. Knowing this can offer a much more complete picture… read more…
- What Are the Different Types of Government Securities?
Government securities refer to a variety of investment vehicles issued by a governing body, national, state or local. You may be familiar with treasury bills, bonds or notes, but you may not be aware that other countries issue debt to… read more…
- What Is a Closed-End Fund and How Do You Invest?
Closed-end funds may not be something you’ve heard mentioned often. Your investment portfolio is more likely to include open-end funds, mutual funds or exchange-traded funds (ETFs) instead. However, closed-end funds can offer some advantages for investors. This guide explains what… read more…
- What Is Over-the-Counter (OTC) Stock Trading?
Securities that trade “over-the-counter,” or OTC, are not traded on a formal exchange. While the biggest publicly traded companies trade on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ, over-the-counter securities trade outside of them, through a… read more…
- Open-End Funds vs. Closed-End Funds
Mutual funds can be a good way to invest if you want to diversify your portfolio without buying individual stocks or bonds. Aside from knowing which share class you’re investing in, you also need to know whether you’re buying an open-end… read more…
- How Fundamental Analysis Is Used to Analyze Stocks
Stocks are a great option for diversifying your investment portfolio. However, choosing the right ones isn’t always a simple process. Different investment tools and strategies, such as fundamental analysis, can help you decide which securities are worth your time and money.… read more…
- Understanding Active vs. Passive Investing Strategies
When it comes to investing, there are generally two different approaches you can take if you’re looking to grow your wealth. You can practice either active investing or passive investing. Both styles allow for financial return, but just in different ways. Whether you’re new to the stock market or you’re an experienced shareholder, it’s important… read more…
- What Is Internal Rate of Return (IRR)? Definition and Examples
The internal rate of return (IRR) measures the return of a potential investment. The calculation excludes external factors such as inflation and the cost of capital, which is why it’s called internal. IRR, which is expressed as a percentage, helps… read more…
- How to Trade Stocks After Hours
Though most stock market business takes place during the regular operating hours, even average investors can now trade after-hours through use various technology platforms. The stock market’s regular operating hours for buying and selling stocks and other securities are 9:30… read more…
- An Investor’s Guide to Asset Classes
Before jumping headfirst into the world of investing, it may be smart to educate yourself on where your money will be invested. This is where asset classes come in. Simply put, asset classes are groups of similar investments, like commodities… read more…
- What Is a Pattern Day Trader?
Day trading involves a degree of risk. Day traders are buying then selling or selling then buying the same security on the same day. The high-risk, high-frequency traders known as pattern day traders warrant regulatory scrutiny all their own. A… read more…
- Using Fractional Share Investing to Buy Pricey Stocks
If you can’t afford to buy a share of a pricey stock, fractional share investing is worth considering. Investors can purchase a fraction of a security (such as a mutual fund, stock or exchange-traded fund) with the hope to increase their holdings over time. Purchasing fractional shares makes investing accessible, especially to those beginning their… read more…
- Speculator vs. Investor: What’s the Difference?
If you’re betting on the rise and fall of securities, you may be a speculator, not an investor. Investors and speculators both put money into assets, enterprises and instruments in the hope of generating a profit. Beyond that, however, they… read more…