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Investing

Jul 22, 2019 When you're looking for a safe way to invest your money, it doesn't get any more solid than government-backed securities. The U.S. Department of Treasury offers several different low-risk options, including notes, bonds and bills. Treasury bills can be appealing because you're not required to tie up your money for a long period of time. But they're not right for every kind of investor. Read on to find out whether adding them to your portfolio is a good idea. And if you're looking for expert guidance, use  Read More...

Mar 13, 2019 If your portfolio is too large for you to handle on your own, it may be time to call in a professional. Wealth managers work with their clients to identify financial goals and map out a plan for achieving them that's built around choosing solid investments that'll grow over time. If you're ready to build serious wealth, here are some tips to help you choose the right wealth management firm. Read More...

Aug 15, 2019 Investing intimidates a lot of people. There are a lot of options, and it can be hard to figure out which investments are right for your portfolio. This guide walks you through 10 of the most common types of investment and explains why you may want to consider including them in your portfolio. If you’re serious about investing, it might make sense to find a financial advisor to guide you. SmartAsset can help you find the right advisor for you with our free financial advisor matching service. Read More...

Aug 13, 2019 So you've got $100,000, and you're ready to invest it. Maybe a relative has passed away and left you money in a will. Maybe you've been building up savings in a retirement account and you're finally ready to get serious about investing it. Regardless of where you got the money, $100,000 is enough that you have a lot of investing options. Read More...

Feb 11, 2019 Passive investing is a go-to strategy for long-term investors, because it capitalizes on the typical upward trend of the overall market over many years. Of course, there are many ways to do well in investing, and  financial advisors employ numerous strategies to generate robust returns. But if you're looking to grow your money over the long haul, take a look below to learn more about passive investing. Read More...

Sep 05, 2018 Whether you're new to investing or have been doing it for years, mutual funds offer a great way to invest your money. It allows you to invest in multiple stocks and bonds without the hassle of choosing and buying each individually. Plus, mutual fund companies can do all this work for you. While convenient, mutual funds aren't always accessible to all investors due to their potentially high minimums. Read More...

Jul 09, 2019 Warren Buffett said it best: “Read 500 pages like this every day. That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” Whether you're a beginner or a seasoned investor in need of a refresher, reading some of the best investing books is a great way to sharpen your knowledge. With these books, you can pick Peter Lynch's brain, learn the history of Wall Street or simply figure out if you're ready to use that spare money tucked away in your savings account to start investing. And if you want some extra guidance as you apply your newly acquired knowledge to your portfolio, consider enlisting the help of… Read More...

Aug 06, 2019 A wealth manager is a subset of financial advisor that primarily serves high-net-worth and ultra-high-net-worth individuals - in other words, people with wealth that needs managing. A wealth manager's role is far more comprehensive than just offering a client investment advice. These financial professionals provide a holistic suite of services that encompasses all parts of a person's financial life, including both investment management and financial planning, as well as accounting and tax services, retirement planning, estate planning and more. Read More...

Sep 24, 2018 When it comes to investing, millennials aren't known for being a reckless bunch. According to a study published by UBS earlier this year, Americans aged 21 to 36 are the most fiscally conservative generation since the Great Depression. Their better-safe-than-sorry attitude can be chalked up in part to the economic turmoil of the last few years and the unique financial challenges they face. Read More...

Feb 08, 2018 Everyone makes mistakes and when it comes to your investment strategy, some wrong moves can be worse than others. Whether you're dipping your toes into the investment game for the first time or you've been playing the market for years, there's always the possibility that your strategy may backfire. Maxing out your returns means knowing what you should and shouldn't do with your money. Here are some of the most common pitfalls investors should try to avoid. Read More...

Dec 06, 2019 Due to trade war fears, policy uncertainty and a host of other factors, investors are leery about what the future holds for the stock market. But certain funds are designed to bet against the market or weather a bear market. Read on to discover how bear market funds work and if they can protect your portfolio. Read More...

Dec 06, 2019 Whether they hedged against inflation or worried about the market crashing, investors regularly resorted to gold to offset risk. There are many ways to invest in gold, including gold mutual funds. Read on to discover how to invest in specialized gold ETFs and gold mutual funds; and what to look for in a fund. Read More...

Dec 06, 2019 Municipal bonds ( or “munis”) are a fixture among income-investing portfolios. Investors who want a higher returns can invest in high yield municipal bonds. These bonds pay more than investment-grade counterparts, but are risky. There’s a realistic chance you’ll never get that money back. Here’s how they work. High Yield Municipal Bonds Defined A high yield municipal bond is issued by a government. It is either not rated by the major credit rating agencies or has been given a rating below investment grade. Ratings below BBB/Baa3 are generally considered not investment grade. While private entities can also issue high yield bonds, only state or local governments can issue high yield Read More...

Dec 06, 2019 Investors with an eye for growing economies can invest in emerging market funds such as a mutual fund and an ETF. Over the past 20 years, investors have found great success in countries such as China and India. These countries have had dramatic growth and investors have reaped exceptional returns buying securities linked to these economies. Here's where to find emerging market funds and what to look for in such funds. Read More...

Dec 06, 2019 Investing in a small-cap value fund is one way to diversify a portfolio. These funds offer exposure to companies with a smaller market capitalization and an investment focus on value instead of growth. Small-cap value funds can be traditional mutual funds, index funds or even exchange-traded funds. This guide offers an overview of how these funds work, what their performance is like compared to other fund types and what you need to know to invest. Read More...

Dec 05, 2019 Many companies have a chief investment officer (CIO), someone who’s in charge of a company’s financial assets. They typically manage  long-term investments, portfolios of securities, pension funds, ensure adequate liquidity and a team of financial experts. Not all companies need to hire a full-time CIO, who is sometimes a director, and some can’t afford such a full-time salaried position. Instead, some companies are better off outsourcing CIOs. Here’s what an outsourced chief investment officer (OCIO) is and when it’s a good time to hire one. Read More...

Dec 05, 2019 High-yield bonds, also known as junk bonds, are corporate or government debt securities that analysts believe are likely to default. Junk bonds are suitable for investors comfortable with high risk. For retail investors these securities can play an important role in their portfolio, provided the risk is understood. Here’s what you should know. Read More...

Dec 05, 2019 Bond duration is a double-edged sword. Companies that issue bonds repay their debts over 10, 20 or even 30 years. For investors bond coupons generate limited but steady returns for years. They also lock up money. Short term bond funds solve that problem by maturing in less than a year. Here’s how they work. Read More...

Dec 05, 2019 You most likely heard about quantitative easing during the Great Recession. With talk of recession more common recently, you will likely hear about it again. Quantitative easing is when central banks use newly printed money to purchase large numbers of securities. Here's how it works and what it does. Read More...

Dec 04, 2019 Publicly held corporations don’t operate in a social or environmental vacuum. Their policies and practices affect employees, investors and customers, as well as the environment. The growing realization that a corporation's conduct will have either a positive or negative effect on stakeholders and the environment has made corporate social responsibility (CSR) an important aspect of modern-day business operations. It also has become an important consideration for retail investors. Read More...

Dec 04, 2019 Commodities trading involves buying and selling hard assets that are typically agricultural in nature or naturally occurring. Investing in commodities often means trading futures contracts, which can be profitable but risky. Commodity mutual funds are an alternative way to diversify using commodities, and they can yield several benefits to investors. If you're interested in branching out with your portfolio, this guide walks you through the most important things to know about commodity funds. Read More...

Dec 03, 2019 Utility funds are designed to target the utilities sector of the stock market. You can invest in traditional mutual funds or choose utility exchange-traded funds (ETFs) instead. Both have their pros and cons when constructing a diversified portfolio. If you're unfamiliar with what the utilities sector covers, this guide explains how the various utility funds work and how to invest in them. Read More...

Nov 29, 2019 Looking for an investment that can help manage risk in your portfolio? Consider market neutral funds, which aim to provide stable returns and mitigate risk in various stock market environments. But like with any investment strategy, it's worth weighing the pros and cons before you commit. Here's what you need to know about market neutral funds, and the potential benefits and drawbacks they bring. Read More...

Nov 27, 2019 There are many words that in the financial lexicon you probably understand in a general sense. But if you’re serious about investing, it helps to be specific about certain terms, one of which is ‘equity’. Knowing exactly what it is, and isn’t, is essential to any investment strategy. It doesn’t take long to solidify and expand a working definition of this market terminology essential. However, if you’re eager to learn how equity can play a role in your portfolio, a financial advisor can help you consider your options. Read More...

Nov 27, 2019 There are some financial chores you might have down to a science, like budgeting, filing  taxes or auto-payments. And if you're an investor, you should add portfolio optimization to this list. With regular portfolio review, you can make adjustments and increase the likelihood you'll end up with comfortable returns instead of frustrating results. A few quick exercises can help make portfolio optimization more straightforward. If you're just getting started, a financial advisor may help you establish routines for a lifetime of investing. Read More...

Nov 29, 2019 Investing in futures is a way to benefit from stock market movements without actually owning a particular security. Managed futures is considered an alternative investment strategy that can be used as a hedging tool within a portfolio. Though there are several benefits to investing in managed futures, it's not necessarily right for everyone. If you're thinking about adding managed futures to your portfolio, here's what you need to know. Read More...

Nov 26, 2019 There are many ways to invest in real estate. Two of the most obvious are purchasing a rental property or investing in fix-and-flip projects. Investing in global real estate is also a possibility. If you're expanding your horizons, here's what you should know about real estate beyond your backyard. Read More...

Nov 26, 2019 The terms "Wall Street" and "Main Street" get tossed around a lot in conversations about the financial industry. But not everyone has a clear understanding of how they differ — especially when it comes to investing their money. Here's how Wall Street and Main Street are different, and why that matters when it comes to shaping your investing strategy. Read More...

Dec 03, 2019 A market maker is typically a large bank or institution. They help ensure the liquidity of a market by offering to both buy and sell securities. As an investor, there are some things you need to know about market makers. Here's how they work, why they’re important to the market, and how they use supply and demand. Read More...

Dec 03, 2019 The Sortino Ratio helps measure the risk-adjusted return of an investment. Both it and the Sharpe Ratio determine an investment's return through risk-adjusted methods. However, the Sortino Ratio only factors in downside volatility. Learn about the Sortino Ratio, how people use it, and how it can benefit investors. Read More...

Dec 03, 2019 Investments come in many different forms. At one end are stocks, which are considered fairly high-risk, but can give you high returns. On the other end are low-risk investments, including the money market. If you seek safety, security, and low-risk investments, money markets might be the right choice for you. Read More...

Dec 03, 2019 If you’re looking to maximize investment returns, perhaps you should think like a gambler. The Kelly criterion was used by horse racing gamblers in the late 1950s. Today, Warren Buffet and others use it for investing purposes. Before addressing your investment strategy, learn about the Kelly criterion and see if it's a fit for you. Read More...

Nov 21, 2019 Many investors build their portfolios around index funds. These bundled assets provide a return that tracks some third-party metric such as the price of gold, the bond market or, commonly, the U.S. stock market. The S&P 500 average annual return makes its index one of the most stable investors can ask for. Here's what it looks like. Read More...

Nov 21, 2019 You get in the shower and turn on the hot tap. The water's cold, so you turn the tap a little further. Still nothing, so you give it another nudge. Then, all that hot water bursts out at once. You let out an undignified yelp and jump backwards, suddenly understanding how a stock market bubble bursts and a Great Recession begins. What is a Stock Market Bubble? A stock market bubble is a period of growth in stock prices followed by a fall. Typically prices rise quickly and significantly, growing far beyond their previous value in a short period of time. When they fall, they do so quickly and often below the starting value. A stock market bubble can affect either the market as a whole or specific sectors, such as within individual industries or geographic regions. They typically occur when investors overvalue stocks, either misjudging the value of the underlying companies or… Read More...

Nov 18, 2019 The Series 27 Financial and Operations Principal (FINOP) is a license that allows its holder to oversee the financial operations in one specific organization, namely a member firm brokerage. Also, the name refers to the exam the license holder must pass. We'll explore the role the qualification plays in the regulatory structure of the investing and brokerage business. However, a financial advisor can help you learn more about brokerages and which ones might suit your investing objectives. Read More...

Nov 18, 2019 Whether you're looking to buy or sell a security, you'll likely use a registered representative to help complete the transaction. Registered representatives, usually working with a brokerage firm, help their clients trade securities and provide investment advice. Their practices are heavily regulated, and each representative has passed comprehensive qualifying exams. We’ll explore the fundamentals of how registered representative approaches their profession, but the securities industry is extremely complex. If you are eager to learn more, consider finding a financial advisor who can assist your investment strategy. Read More...

Dec 03, 2019 Hypothecation is the practice of pledging collateral in order to secure debt. This comes up most often in mortgage lending, but it can apply to any kind of debt. It shows up in investing, but hypothecation and riskier rehypothecation can have consequences for homeowners. Learn the basics of hypothecation and how it works. Read More...

Dec 03, 2019 There are many different strategies for managing an investment portfolio But did you know you can automate trades within that portfolio? Algorithmic trading automatically places stock orders based on price and other conditions. Here are the basics of this method, how it works, its pros and cons, and when to use it. Read More...

Nov 16, 2019 In stock trading, there are several buying and selling strategies to choose from. Price action trading is one of them. Rather than relying on technical analysis or fundamental analysis, price action trading simplifies tracking and acting on stock trends. If you think it could help build your portfolio, here's what you need to know. Read More...

Nov 15, 2019 The capital market refers to the arena where securities are created and traded between investors. Within this capital market are a primary market and a secondary market, each of which serves a different purpose. Those markets work together to promote economic growth while allowing companies to raise capital via investors. Read More...

Nov 15, 2019 Smart beta knows that every investor wants to beat the market. Few actually pull it off. Most of the time, a long-term, passive strategy built around reliable index funds will outperform most active trading schemes. Most of the time. Yet even index funds could use some help. This is where smart beta comes in. Read More...

Nov 14, 2019 An entrepreneur is someone who starts a business. Entrepreneurs are some of the most storied figures in their fields. They are credited with originating industries, building large fortunes and, sometimes, changing the world. They also take great risk for uncertain reward. Here’s more about what an entrepreneur is and what one does. Read More...

Dec 03, 2019 There was a time where finances and technology were separate, like church and state. If you needed money, you went to the bank. If you wanted to play games, you used a machine. But now, there is fintech: The marriage between finance and technology. Here’s what financial technology means for your future. Read More...

Dec 03, 2019 If you own a company that is looking to get an initial public offering (IPO), you might need to raise equity capital from financial institutions. However, you can do that through equity capital markets, which are broader than the stock market. Learn how equity capital markets work and what ECM groups do. Read More...

Nov 14, 2019 All investors seek a balance between risk and return that works for their temperament and circumstances. Allocation of capital drives many investment strategies, but some focus on risk allocation instead. One such strategy is risk parity, which spreads risk across asset classes to deliver returns that don't swing up and down with the market. This approach can appeal particularly to investors who want to avoid concentrating their portfolio risk in stocks. While it's a popular strategy, you may want to consider working with a financial advisor to determine if it suits your investment approach. Read More...

Nov 13, 2019 It's likely that most investors rarely thin about the world of private equity, even though private equity funds control billions of dollars in assets. In the best cases, they reap enormous returns for their investors and help launch some dynamic companies. These funds are not for casual investors, but it can be helpful to learn how they operate and ways you can directly or indirectly invest in them. We'll cover the private equity fund basics here, but if you have large assets to invest, consider working with a financial advisor who can explain how specific funds work. Read More...

Dec 03, 2019 Investing and financial planning are all about the numbers, so it's easy to see why economists long assumed people approach these subjects logically. And they do, but only sometimes, which is one of the key insights of the growing field of behavioral economics. Researchers have found abundant evidence that people often are more irrational about finances, investing and reading markets than previously known. Understanding how biased and oversimplified thinking can influence perspective can be fascinating-and very useful to investors. If you need more insights, consider finding a financial advisor to help you design a smart investing approach. Read More...

Nov 13, 2019 The bond market is a safe harbor when the stock market starts going pear shaped, or just feels a bit wobbly. They come in all shapes and sizes from Treasury to junk, and are often a very strong option for someone looking to diversify their portfolio with a bit of stability. Here’s what you need to know about bonds and bond investment. Read More...

Nov 12, 2019 Investing smart means using the right tools. Whether that’s considering a stock’s volatility metrics or its price history, you won’t invest as well without the proper resources. One such resource? The market profile chart, first used in 1984. A market profile chart conveys a stock’s price and volume information over time in one quick format. It can be useful for long-term investors , speculators and day traders alike — if, that is, you know how to read one. Read More...

Nov 12, 2019 In options trading, “delta” represents volatility. It is one of a set of variables, collectively known as “the Greeks, that traders use to assess the risk of a derivative. Here's what you need to know about delta neutral investing and how it works. Read More...

Nov 11, 2019 If you're an investor, chances are you're looking for a reliable way to keep tabs on how your money is doing. And while various methods exist to measure the performance of an investment portfolio, calculating the time-weighted return (TWR) is the most common. The TWR measures the compound rate of growth in a portfolio while accounting for inflows and outflows of money. Read on for more about the time-weighted return and how to use it to evaluate the performance of your investments. Read More...

Dec 02, 2019 Whether you’re a financial novice or a seasoned investor, getting some help from an expert might be good for you. If you need some help with financial planning, investing, or managing wealth a Chartered Wealth Manager (CWM) may be a good bet. Here's what a CWM is and how its stands out from other financial experts. Read More...

Nov 08, 2019 CAN SLIM is an investing strategy which represents seven characteristics typically present in well performing stocks before. As a result, those traits typically manifest right before a stock sees its price increase. The term CAN SLIM or "C-A-N-S-L-I-M" is an acronym, with each letter representing one of the system's key factors.  Read More...

Nov 08, 2019 Risk is one of the most essential concepts to successful investing. Investors and capital-seekers looking for right balance on any given security drives most market activity. Alpha measures an investment's performance compared to a relevant market, like the Dow Jones or S&P 500. Here's how alpha is measured and how it's used in investing. Read More...

Nov 07, 2019 A financial firm is said to practice proprietary trading if it invests its own money to make profits for itself, instead of earning commissions by trading on a client's behalf. While the firm’s clients don’t benefit from proprietary trading, it can be very profitable for a financial firm. Read on to learn the ins and outs of proprietary trading, as well as government limits placed on the practice in the wake of the Great Recession. Read More...

Dec 02, 2019 As an investor, wouldn’t it be nice to know that your portfolio both limits your risk and maximizes return? Ideally, it will do just that. The efficient frontier is a set of investment portfolios that maximizes returns while minimizing risk. Learn how the efficient frontier works, why it matters, and how it can benefit your investment strategy. Read More...

Nov 07, 2019 A flash crash occurs when electronic securities trading systems trigger a dramatic drop in price and rebounds within minutes. While flash crash occurrences are happening more often, many investors still don’t understand what causes them. Read on to learn how flash crashes work and if it’s possible to prevent them. Read More...

Nov 06, 2019 One hundred is a lot of shares. Literally, when trading stock one “lot” is defined as 100 shares. A round lot is any number of shares evenly divisible by 100, while any other amount is considered an “odd lot.” Block traders do not deal in lots of shares. They operate on a scale several orders of magnitude larger. Read More...

Nov 05, 2019 The edge case scenario is realistic, but too remote to come up in daily events. Arguably, how well you manage unlikely outcomes largely defines your skill in a profession. Lawyers call them “bad cases,” and warn every first year law student that bad cases make bad law. Doctors have their rare and orphan diseases. Investors have tail risk. Read More...

Nov 05, 2019 It is clear that, once upon a time, finance types had a little more fun with their jobs. How else to explain how "dead cat bounce" came to be a widely accepted piece of financial jargon? The odd term refers to a temporary rally in the price of a stock that’s losing value. So what constitutes a dead cat bounce, why does it happen and how can investors benefit from this phenomenon? Read More...

Nov 04, 2019 A chartered financial analyst (CFA) is a financial advisor who has earned the title of CFA through extra accreditation, including a rigorous three-part test, from the CFA Institute . A Chartered Alternative Investment Analyst (CAIA) specializes in alternative investments such as hedge funds and private equity. This professional must undergo 400 hours of study and pass two rigorous exams to earn the CAIA designation from the Chartered Alternative Investment Analyst Association. We’ll explain what a CFA and a CAIA do, what it takes to earn those designations and the difference between the CFA designation and the CAIA designation. If you are looking for a financial advisor who can help you with your investments, check out Read More...

Nov 04, 2019 There is no lack of investment opportunities in today's financial sector, but every investor's situation is different, and many welcome new options. If you're seeking alternatives beyond mutual funds and stocks, you might consider UCITS funds. UCITS stands for the Undertakings for the Collective Investment in Transferable Securities, which is a regulatory framework that governs the sale and management of mutual funds in the European Union. UCITS funds are enormously popular in Europe, but investors outside the EU can access them as well. Here's what you need to know about how these funds work. Read More...

Dec 03, 2019 Investing has its risks. But there are strategies to determine an investment’s expected return, based on that risk. It’s called the Capital Asset Pricing Model (CAPM). Investors can use CAPM to determine whether an investment is worth the risk. Learn how to calculate it and use it in your investing. Read More...

Dec 02, 2019 When tracking your investment portfolio, you might compare its against a stock market index such as the Dow Jones Industrial Average. Ideally, you want investments to beat the Dow. The Dogs of the Dow investing strategy attempts to identify value stocks. What’s its history, does it work, and how can investors take advantage? Read More...

Dec 02, 2019 Investing in the stock market inevitably brings risk, and diversifying a portfolio doesn't eliminate it. There's always systematic risk. In other words, there's always inevitable risk that affects a market segment or the market as a whole. Systematic risk affects the entire market, not just a single stock or industry. Here's what investors need to know. Read More...

Dec 02, 2019 If you’re stock market regular, you’ve likely heard of day trading: The buying and selling of securities within the same trading day. But maybe you’d like a slightly longer lead time for such transactions. Enter swing trading, which is basically day trading over a somewhat longer period. Here are some basic swing trading strategies. Read More...

Dec 02, 2019 Assessing the value of a company or security can take a few different forms. You can measure all stocks or securities equally, or use market capitalization. Another choice: a price-weighted index, in which each member company's stock in an index is weighted proportionally to its current share price. Read More...

Dec 02, 2019 While you might have a good grasp on the ins and outs of the stock market, it’s impossible to predict its future. That doesn’t stop some people from cheating the system for their own benefit, though. Read on to learn all about market manipulation, including how to spot it and avoid becoming a victim. Read More...

Nov 01, 2019 Since buying and selling stock is a key component of investing, it’s important for investors to understand trading terminology — especially the term "bid-ask spread." If you have no idea what that means or how it affects your investment mix and overall portfolio, read on. Read More...

Oct 31, 2019 High frequency trading (HFT) is controversial. Some investors say it lets people capitalize off of opportunities that may vanish quite quickly. Others say high frequency trading distorts the markets. Supporters of high frequency trades have rhetoric in their corner, but opponents have data. Here’s what they’re all talking about. Read More...

Oct 31, 2019 Systemic risk is the risk that a company-level event could destabilize an entire industry. Think back to the financial crisis of 2008, when many companies deemed "too big to fail" did exactly that. To safeguard your investments for the next market adjustment, it helps to understand the factors that contribute to a downturn. Read on to learn more about systemic risk and how it can impact your future financial security. Read More...

Oct 29, 2019 As one of the most highly regarded compliance certifications, the Certified Regulatory and Compliance Professional (CRCP) designation helps professionals increase their skills as well as knowledge of industry regulations. Read on to discover the importance of the CRCP and how it influences the companies you may do business with. Read More...

Oct 28, 2019 Restricted stock has become a common offering among employers in the last twenty years. There are two main types: restricted stock awards (RSA) and restricted stock units (RSU). Both can be lucrative parts of a compensation package, but they have important differences that can affect your long-term financial interests. Read More...

Oct 26, 2019 An annuity is an insurance contract you can use to create an income stream. You can purchase an annuity to draw payments against in retirement as a supplement to tax-advantaged or taxable savings accounts. But what if you want to sell your annuity and get immediate cash? Here's why selling your annuity is something you might consider. Read More...

Oct 25, 2019 Marketing professionals within the finance industry may escape licensing exams like the Series 7. However, the Certified Financial Marketing Professional (CFMP) designation from the American Banking Association (ABA) requires some testing of its own. A CFMP demonstrates expertise in bank marketing, and here's how you get it and maintain it. Read More...

Oct 24, 2019 Leverage is a common financial concept you may often hear in reference to maximizing investor returns. Commonly used by investors and companies alike, leverage is a technique that utilizes debt instead of equity to buy an asset. The expectation is that the profit from the endeavor will exceed the risk and cost of taking on additional debt. However, applying leverage to your investment strategy comes with pros and cons. If you have further questions, meet with a financial advisor in your area. Read More...

Oct 23, 2019 Neighborly is an investment company that allows investors to invest in communities seeking funding for internet infrastructure. More specifically, it focuses on bringing fiber broadband access to disadvantaged communities in the U.S. by way of direct investments in its qualified opportunity fund (QOF). As of now, investments in this QOF are only open to accredited investors, though this may change down the road. If you have questions about investing in these and other unique asset classes, try consulting with a financial advisor. Read More...

Oct 22, 2019 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 activity in the stock market. Knowing how to read and understand a stock ticker is crucial to following the movements of the market. Read More...

Oct 21, 2019 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 the endowment principal. Read More...

Oct 17, 2019 Some companies regularly pay their shareholders part of their profits in the form of  dividends. These bonus earnings function as both a reward for investors and a way of generating confidence in a company's stock. Investing in dividend-yielding equities for a little extra income and an upfront return on your investment might seem like a no-brainer. However, you should examine what types of stocks pay dividends and how these payments are taxed. Read More...

Oct 16, 2019 Investing can be a powerful way to grow your savings over time, but the downside is that you generally have to pay taxes on your investment gains. The more you pay in taxes, the less of your returns you get to keep. With the right strategy, however, it's possible to minimize the amount of taxes you pay on your investments. Certain investments are not subject to taxation, and investments placed in certain tax advantaged retirement accounts will likewise be shielded from some taxes. As you build your portfolio, consider including these seven options for minimizing taxes.  Read More...

Dec 02, 2019 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 private companies, often with the goal of taking over those companies and making them more profitable. Read More...

Oct 08, 2019 The Consumer Price Index (CPI) is an economic term you've probably heard before but may not know much about. Broadly speaking, the CPI measures the price of consumer goods and how they're trending. It's a tool for measuring how the economy as a whole is faring when it comes to inflation or deflation. When planning how you spend or save your money, the CPI can influence your decisions. Here's how. Read More...

Oct 07, 2019 Net worth is often used as a measurement of individual, or household, wealth. This value can give you a holistic perspective of your financial situation. In fact, the average American net worth is $68,828, according to the U.S. Census Bureau's 2011 study on wealth and asset ownership. But how is this figure calculated? And how do you calculate your own net worth? Below, we take a closer look at the factors that distinguish your net worth from your fellow Americans. Read More...

Oct 02, 2019 Investing in stocks, mutual funds and other securities inevitably comes with risk. One of the ways investors can better understand these risks is by reading the prospectus of a security. A prospectus is a legal document that describes a security to potential investors. Required by the SEC, a prospectus contains facts about the company or fund issuing the security, including details on its finances, management, history and other information that could help investors make an informed decision. The prospectus is a key tool in an investor's toolbox, making it easier to understand whether or not you're investing in a way that aligns with your goals and risk tolerance. Read More...

Sep 30, 2019 A subadvisor is an investment management firm that typically partners with a mutual fund investment advisor to help with the day-to-day management of the fund. They often provide specialized expertise in a specific type of investment strategy. This could include building an appropriate asset allocation, choosing securities or rebalancing the fund's portfolio. If you want some help managing your investment portfolio, check out financial advisors in your area. Read More...

Sep 30, 2019 Buying on margin is a technique often reserved for intermediate and advanced investors through which someone borrows money from their broker in order to  invest it. In the best-case scenario, buying stock on margin can increase your earnings significantly. On the other hand, you can be left in a world of hurt if the price of your investment drops. The world of margin investing is one of higher stakes, so it's crucial to understand the concepts and associated risks before diving in. Read More...

Sep 30, 2019 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, and it's also used to calculate the bond's interest payments. It's one of the key numbers you need to know about a bond in order to understand its value as an investment. If you have specific questions about investing in bonds, consider consulting with a financial advisor. Read More...

Sep 27, 2019 Market capitalization, often abbreviated as market cap, is a measure of a public company’s overall value as set by the market. Market cap can be used to compare companies. It is also a tool to help diversify a portfolio of investments and manage risk and return. The market cap of a given company is generally easy to find, though you can also calculate it yourself. Read More...

Sep 27, 2019 When you own a business, it's important to ensure your assets are protected. Being sued or carrying large amounts of debt could pose a threat to both your business and to your own personal finances. Fortunately, there are steps you can take to safeguard your assets against these kinds of dangers. Creating an asset protection plan that covers both your business and your personal assets can be an essential part of your overall financial planning strategy. Read More...

Sep 27, 2019 Whether you’re a new or veteran investor, you probably want a lot of different things from an investment. But, deciding which investments will help you achieve your financial goals may be a bit of a challenge. So, rather than putting together a portfolio of investments from scratch, many financial advisors will assign you to a pre-built model portfolio. Here's what to expect from a model portfolio and what to consider when selecting one. Read More...

Sep 26, 2019 A company's board of directors represents shareholders and supervises a company. As a result, directors are of particular importance to investors in individual stocks. It's why all publicly traded companies have boards of directors. Meanwhile, many non-profits and non-public companies have a board of directors as well. Here's how a typical board of directors works, what it does, and how board members earn their seats. Read More...

Sep 19, 2019 A forward contract is an agreement between two parties to buy or sell an asset at a specified price at a fixed date in the future. This  investing strategy is a bit more complex and may not be used by the everyday investor. Forward contracts are not the same as futures contracts. Here's a breakdown of what they are and some pros and cons to consider. Read More...

Sep 19, 2019 Credit default swaps are a portfolio management tool that gained notoriety during the peak of the 2008 financial crisis. These derivative investments are bit more complex than stocks, mutual funds or bonds, but they can be an effective way to manage market risk. Here are the most important things to know about how a credit default swap works, the players involved and what it's used for. Read More...

Sep 18, 2019 Earnings per share (EPS) is a financial measurement that tells investors if a company is profitable. Savvy investors consider a company’s earnings per share when determining investment decisions. Understanding the calculation of earnings per share and how it plays a role in selecting a stock can help investors make smart money moves. Read More...

Sep 18, 2019 You might assume that once the closing bell rings, stock market trading is done for the day. In reality, after-market trading can continue on into the late afternoon and evening. Not every brokerage allows for after-market or after-hours trades, though. But if yours does, it's important to understand the rules, pros and cons before venturing in. A financial advisor can help you get into the after-market trading game if you aren't sure where to start. Read More...

Sep 19, 2019 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 right to buy additional shares or sell those rights to another investor on the open market. Also referred to as a rights issue, this scenario isn't one you may encounter often. But if you do, it's important to understand how it works. Read More...

Sep 16, 2019 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 known than others and they each have their advantages and disadvantages. As you shape your portfolio and pursue your investment goals, consider what pooled investments could do for you. Read More...

Sep 16, 2019 Small cap stocks are one type of stock investment you can hold in your portfolio. These stocks differ from large cap and mid cap stocks in several key ways. There are several advantages associated with investing in smaller companies, along with a few drawbacks to keep in mind. If you're contemplating adding small cap stocks to your investment strategy, here's a breakdown of what they are and how they work. Read More...

Sep 16, 2019 When it comes to investing, the higher the risk the better the reward. But what if you don’t know what your risk level is? Your risk tolerance is the level of risk you’re willing to take with your investments. You can determine your risk tolerance by evaluating your comfort level in certain investments. Before you get started with investing, learn how to choose securities that suit your risk tolerance. Read More...

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