Loading
Tap on the profile icon to edit
your financial details.

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...

Aug 22, 2019 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 are quite different. Here are the main characteristics distinguishing investors and speculators, and why it’s important to recognize them. Read More...

Aug 22, 2019 Both annual percentage rate (APR) and annual percentage yield (APY) describe the interest associated with either an investment or loan. Essentially, the difference boils down to this -- APR is the rate charged for borrowing or earned through an investment while APY is the effective rate of return, considering compounding interest. The two values vary for different financial products. Whether you're socking away money in a savings account or a money market account, buying bonds or paying off a credit card balance, it's important to understand the distinction between the two. Below, we take a closer look at how APR and APY work, and how they differ. Read More...

Aug 22, 2019 Getting your finances under control isn’t easy. Young Americans have a lot of expenses. It isn’t as simple as learning to balance your checkbook, no matter what your parents might tell you. Personal Capital and Mint are two of the most popular online services for managing your personal finances. Both offer a variety of services and tools you can use to get a hold of what your money is doing and to make improvements to your personal habits so that you are getting the most out of your situation. SmartAsset decided to take a look at both services. We let you know what each offers so you can make an informed choice about which is going to be the best choice for you. And if you find you want some more hands-on assistance in navigating your financial life, consider Read More...

Aug 22, 2019 It's great to save money, but investing to really makes it grow. You may simply want to save money to avoid the risk of losing even minor gains. But it can be hard to make your money work for you if your are completely adverse to investing. Saving will give you cash to fall back on, but it may not help it grow with a changing market and economy. Learn the difference between saving and investing and why it's so important.  Read More...

Aug 21, 2019 A fixed annuity may be something you're considering as part of your bigger retirement planning picture. An annuity can offer guaranteed income in your later years, which is helpful if you're worried about Social Security benefits or other retirement savings falling short. Learning the ins and outs of fixed annuities can help you decide if they belong in your financial plan. Read More...

Aug 21, 2019 Trading stocks in a brokerage account can be a great way to grow wealth alongside the money you may be investing in a 401(k) or individual retirement account. The only catch is the fees you may pay to make trades. Fortunately, there are several online services offering free stock trading. Here's a breakdown of where to trade stocks for free so you can enjoy more of your investment profits. Read More...

Aug 19, 2019 Certified investment management analysts sit atop and entire industry of financial planners. Only about a third of Americans under 35 have money in the stock market, the legacy of the Great Recession. In part, this is because many people find the stock market intimidating. A certified investment management analyst can make it less scary. Read More...

Aug 15, 2019 Modern portfolio theory (MPT) focuses on how to maximize returns for a given amount of risk. However, it also attempts to strike the balance between risk and reward to keep those returns steady. By encouraging investors to diversify their portfolio and rebalance it when necessary, MPT attempts to help investors find the right risk-reward ration. Here's how it works. Read More...

Aug 15, 2019 Chase You Invest Trade is a primarily app-based tool that allows you to create your own investment portfolio. When you open an account, you get 100 commission-free online stock and exchange-traded fund (ETF) trades in your first year. You can also access automated investments through Chase You Invest Portfolios, the bank's answer to the robo-advisor. Both allow users to enter the world of investing. But if you don't want to go it alone, we can help you find a financial advisor. Read More...

Aug 15, 2019 It's never too early to start investing. In fact, the earlier you begin, the bigger your potential for long-term financial growth. If you're a college student and are wondering whether you can afford to invest, don't worry. You don't need a full-time salary to do so. Below we explore your options for investing while in college. And if you want hands-on guidance, consider enlisting the help of a trusted financial advisor. Read More...

Aug 15, 2019 Convertible bonds are just one way to expand your investment portfolio beyond the traditional stocks you may already be investing. This type of bond can offer the potential for higher returns to investors, but they also carry certain risks. Getting to know the ins and outs of how they work, as well as the pros and cons, can help you decide whether convertible bonds belong in your investment strategy. Read More...

Aug 14, 2019 Bond funds can diversify your portfolio, but it's important to understand how they compare to other investments. Like stocks or exchange-traded funds, Like any other investment, bond funds have both pros and cons. They can be a low-cost option with consistent returns, but they also come with some risk. Here are some key things to keep in mind before investing in these funds. Read More...

Aug 14, 2019 Investing in precious metals can help an investor diversify their portfolio. A healthy mix of stocks, bonds, mutual funds, or even an exchange-traded fund (ETF) or two can keep your portfolio balanced. However, t here's a lot of potential for investors who want to bet on the price fluctuations of gold and other precious metals. Here's how to start trading those commodities.   Read More...

Aug 12, 2019 If you find yourself vacationing in the same area year after year, then purchasing a timeshare may have come across your radar. Timeshare properties allow you to partially own what some might consider to be a second home in one of your favorite foreign or domestic locales. Because you share the ownership of a timeshare with other people, the costs associated with ownership are considerably less than, say, a vacation home. Still, buying a timeshare still represents a major financial commitment, so it's a good idea to consult a  financial advisor before you take the… Read More...

Aug 09, 2019 Deciding whether to pay off debt or invest can be tough. They are two competing financial goals, and you may wonder which one takes precedence. Eliminating your debt as quickly as possible has its advantages. Yet there's a strong case for getting an early start with investing. Considering the benefits and potential drawbacks of each can help you decide which strategy is best for your financial situation. Read More...

Aug 09, 2019 If you know how to invest in S&P 500 stocks, they could provide a solid foundation for your portfolio. The S&P 500 is a market index tracking the 500 largest publicly-traded companies on the market. You can learn how to invest in S&P 500 shares with help from index funds. First, however, you should learn how to invest in these funds. Discover what their pros and cons are, and which index fund is right for you.  Read More...

Aug 06, 2019 Treasury bonds and bills can be an important part of your investment strategy. However, treasury yields will determine their value to your portfolio.  Treasury yields represent how much profit you earn by buying U.S. Treasury bonds, bills, or notes. They can reflect the state of the economy or affect the quality of your mortgage. Before investing, it helps to know how treasury yields are calculated and how they affect the economy. Read More...

Aug 06, 2019 Cheap stocks that trade outside a traditional exchange are sometimes known as OTC stocks. They often trade at less than $5 per share and are offered by small companies. By not paying to be on a large exchange, companies keep share prices down to woo investors. There is a degree of risk involved for potential investors, but OTC stocks can be a bargain for those who know what they're looking for. Read More...

Aug 06, 2019 While some investors choose to work with a financial advisor who invests on their behalf, others choose to take a DIY approach, buying and selling their own stocks. As you know if you've ever tried to buy stock, though, there are different varieties of stock orders. Some orders execute immediately; some execute only at a specific time, or price; and others have additional conditions attached. What kind of order you use can make a big difference in the price you pay and the returns you earn, so it's important to be familiar with the different types of stock orders. Read More...

Aug 06, 2019 If you have an investment portfolio or a 401(k), you’ve probably invested in a mutual fund. You may have also invested your savings in an ETF. Another similar option for investors who don't want to buy individual securities is a unit investment trust (UIT). They’re similar to mutual funds, but they're a more static investment, offering a fixed basket of securities for a fixed amount of time. Learn how UITs work and how to invest in them. Read More...

Aug 02, 2019 Just because the market isn't open yet, doesn't mean you can't trade stocks. Premarket trading allows investors to make moves before official market hours. This allows investors to protect their holdings and react to off-hours news and events. However, few buyers and volatile prices make premarket trading a bit risky for novice investors. Read More...

Aug 01, 2019 Want to bet against the future of a company or index? A put option is one way to do so. It gives the owner of an option contract the ability to sell at a specified price any time before a certain date. It can be a good way to hedge against declines, but it comes with a bit of risk. You can lose not only what you invested, but even more than you realized. Read More...

Jul 30, 2019 A company can be more elective about who buys its shares if it sells them in a private placement. Shares sold in an initial public offering , or IPO, are offered to the general public and tend to attract more attention. However, private placement allows a company to raise money without going public and having to disclose financial information. A company can remain private while still gathering shareholder investments. Read More...

Jul 28, 2019 When developing your investing strategy, you may find yourself seeking some help. Yet between financial planners, financial advisors and money managers, it can be tough to pick the right resource for you. Each specialization varies ever so slightly, but tapping the right expert could make a big difference to your bottom line. Here, we breakdown what a money manager is, how they differ from other financial professionals and how to determine whether you need one. Read More...

Jul 26, 2019 The Municipal Securities Rulemaking Board (MSRB) exists because cities can't always be trusted with their municipal bonds. Investing in bonds already involves a degree of risk. The MSRB exists to prevent municipal bonds, notes, and other securities from becoming overly risky for investors. If a city wants to float bonds to fund a public project, the MSRB will be there to oversee the sale, trade and underwriting of those bonds. Read More...

Jul 30, 2019 Working capital measures a business's operating liquidity, but it does so much more. It also can be a good indicator of a company’s efficiency and financial health, as well as how well it manages debt, payroll, and inventory. These are all factors you want to keep in mind, especially if you’re considering investing in said company.  Here's how working capital work and why it's important to investors and business owners.   Read More...

Jul 26, 2019 A zero coupon bond doesn't pay interest, but it could pay off for your portfolio. Choosing between the many different types of bonds may require a plan for your broader investments. A zero coupon bond often requires less money up front than other bonds. Yet zero coupon bonds still carry some of risk and can still be influenced by interest rates. Read More...

Jul 26, 2019 Spotted a hot stock and can't afford to invest as much as you'd like? A margin account allows you to borrow money from your brokerage firm to make the buy. But if trading money you don't have sounds risky, that's because it is. Investing with a margin account can amplify both gains and losses.  Discover the pros and cons of a margin account and whether you should add a margin account to your investment portfolio below.  Margin Account Basics Brokerage firms offer margin accounts to customers who want to boost their buying power or meet their short-term financial needs. Essentially, they're loans that allow you to purchase more securities than you could on your own. As with any loan, you will owe interest. Different firms may charge different amounts based on the… Read More...

Jul 25, 2019 You don't have to watch movies like "The Wolf of Wall Street" or "Boiler Room" to know what pump and dump scheme is about.  Brokers pitch penny stocks to customers in high volume despite its questionable returns.  Once the buyers dry up, the firm ditches its shares for a big profit and drives stock prices down. That results in huge losses for customers and is, unsurprisingly, illegal. Read More...

Jul 26, 2019 Buying on margin lets investors increase potential return with borrowed money, but it's a big risk. The Federal Reserve Board's Regulation T, or Reg T, limits that risk. The collection of rules limits how customers can trade using cash accounts. It is also used whenever an investor buys on margin, using money borrowed from a broker and shares as collateral. Read More...

Aug 19, 2019 When people talk about a market correction, it sounds like a euphemism for falling stock prices. But it’s actually a technical term for a 10% or bigger drop in the price of an index (or individual security) from the last peak. If index prices continue to sink to 20% off the peak, that’s considered a bear market -- beyond a mere correction. To protect your investments during down times and amid all market conditions, consider working with a financial advisor. Read More...

Jul 25, 2019 An initial coin offering, or ICO, is a cryptocurrency-based method of funding for companies. While ICOs are often compared to IPOs (initial public offerings), the Securities and Exchange Commission (SEC) says ICOs pose significantly greater risk of fraud and manipulation. Compared to traditional capital markets, ICOs are lightly regulated. Be mindful, as ICOs could turn out to be scams that give investors little or nothing for their money. Read More...

Jul 24, 2019 One downside of many low-risk investment products is that the rate of the return often does not keep pace with inflation. That downside is eliminated with Treasury Inflation Protected Securities (TIPS). With TIPS, your investment principal increases alongside the Consumer Price Index (CPI). TIPS make it possible to invest with low risk without worrying about inflation erasing most or all of your return. Read More...

Aug 02, 2019 Day trading apps make buying and selling stocks, mutual funds or other securities easier than ever. These apps offer convenience and portability since you can manage your investment portfolio from your mobile device or laptop on the go. But which ones are the best right now? SmartAsset has rounded up the best day trading apps of 2019 for tech-savvy investors. Read More...

Jul 29, 2019 Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage firms to maintain secure accounts. Also known as the Customer Protection Rule, SEC Rule 15c3-3 is part of the Code of Federal Regulations. It ensures that brokerage clients can withdraw assets at any time, and a brokerage has to work to uphold it. Read More...

Jul 22, 2019 A call provision allows an issuer to pay a bond early. Most bonds have a fixed maturation and value. If you buy a 10-year bond, you get back your capital plus a fixed interest rate in a decade. Call provisions are an exception to this rule. Before buying bonds, you may want to look into call provisions and their quirks. Read More...

Jul 30, 2019 A viatical settlement is some grim business. It allows the holder of a life insurance policy to sell it for more than its purchase price, but less than its face value. If you are in the market to sell one, you have our sympathies. However, if you find yourself in that situation, there are a few things you should know before making a sale. Read More...

Jul 22, 2019 Liquid assets are things you own that can be quickly converted into cash without losing value. They’re different from fixed assets, which are good investments but take longer to convert to cash. Think of things like real estate properties (your home, for example) or your car. Liquid assets come in many different forms. Make sure you consider which ones you have and how much you should have at the ready. Read More...

Aug 15, 2019 When is debt not ordinary debt? When it's packaged as exchange-traded notes. An exchange-traded note (ETN) is pegged to a market index, but functions like a bond. At maturity, ETNs pay out the return of the index it tracks. However, it won't make regular interest payments like a bond. If you're considering using ETNs to diversify your portfolio, you may want to consider some of their more eccentric features before diving in. Read More...

Aug 15, 2019 When you starting to invest, you take steps towards using money to earn money. You’ll take cash and buy different types of investments, or securities. There are many different securities you can invest in, and the ones you choose can depend on what type of investor you are. Once you take your personal circumstances and risk tolerance into account, you may able to select the securities that best fit your portfolio. Read More...

Jul 19, 2019 As one of the largest multinational electronic manufacturers in the world, Foxconn (also known as Hon Hai Industry Co.) offers a variety of consumer electronics, component and computer electronic products. Led by founder, chairman and CEO Terry Gou, the Taiwanese manufacturer also operates in both domestic and overseas markets. With the company having established a global footprint, many investors are looking to claim a share. Below, we go over your options for purchasing Foxconn equity in the U.S. And if you want further hands-on guidance as you strategize your investments in Foxconn and beyond, consider enlisting the help of a trusted Read More...

Aug 07, 2019 The marijuana industry is rapidly growing as more states legalize the drug on both a medicinal and recreational level. However, for investors interested in buying stock, it's important to consider the risk that comes with investing in the industry. Here's everything you need to know about buying marijuana stocks. And if you want more guidance investing in the cannabis sector and beyond, considering enlisting the help of a trusted financial advisor. Read More...

Jul 29, 2019 Bonds are often the investment of choice for people seeking stability. They don’t yield much, unless you have sought out the junk market, but they come with highly stable returns. Bonds can be seen as the dad jokes of investing: boring, predictable and there when you need them. However, sometimes you can spice up your bonds just a little. That’s where floating rates come in. Here's a breakdown of floating rate notes and what you need to know before you invest. Read More...

Jul 19, 2019 Monetary policy is vital to the health of any nation's economy. It is typically decided by an independent body or central bank, and is used to manage a nation's money supply and interest rates. Money policy should encourage economic growth and discourage inflation. The Federal Reserve implements monetary policy in the U.S., and it affects interest rates, the stock market, and more. Read More...

Aug 02, 2019 Investing in foreign currency can be a great way to diversify your portfolio. Foreign currency trading, or forex for short, is a little more complex than trading stocks or mutual funds, or shoring up your investment strategy with bonds. Learning the basics, however, can give you a solid foundation to build on if this is an asset class you're interested in exploring. This guide walks you through everything you need to know to get started with investing in currency. Read More...

Aug 08, 2019 The yield curve is an economic indicator that tracks the relation between long- and short-term bond yields. When the yield curve inverts, people get very worried. Here's why. Read More...

Aug 07, 2019 There are two reasons one may choose to conduct dark pool trading. First, it could make your job sound far more thrilling than it actually is. “Stock analyst” might not light up the conversation at a party. “Dark pool traders,” on the other hand, probably ride motorcycles to work at an undisclosed location. No one will know what you do. And, for security purposes, you can’t tell them. The second, more practical reason is to conduct trades without influencing the market. Dark pool investing is a straightforward solution to a relatively common problem. However, it's not a problem many retail investors will likely have. Here's a breakdown of dark pool investing. Read More...

Aug 02, 2019 When looking for a smart investment strategy, some investors buy call options. Call options often enable investors to maximize profits while minimizing risk. Purchasing a call option may yield profit that is significantly higher than if you bought a security outright. However, as with any investment strategy, there are risks involved. Read More...

Jul 29, 2019 Coupons can save you money on double stuffed Oreo cookies. They can make skee-ball seem like a good use of time. And they can help you save for retirement or college tuition. A bond with semi-annual to annual copon payments can provide a steady stream of income with the right coupon rate. Though the coupon rate on bonds and other securities can pay off for investors, you have to know how to calculate it first. Read More...

Aug 21, 2019 The Compound Annual Growth Rate (CAGR) may be the key to better investment earnings. The CAGR formula calculates year-over-year growth rates and helps chart investment performance. It also allows investors to see how similar investments have fared over the same length of time. If you're in need of a financial advisor, the CAGR formula can help you compare advisors and see who is getting their clients the most for their money. Read More...

Jul 18, 2019 The principal is the start of your your investment journey. You need some cash to open an account, and your initial deposit is the principal amount.  When investing, the principal is the amount you initially invested. For both accounts and investments, the principal represents the foundation upon which everything else is built. It's a fundamental concept, but one that's crucial to understanding both savings and investment. Read More...

Aug 15, 2019 While a typical exchange-traded fund (ETF) lets you invest in a sector, index, or industry, an inverse ETF let you bet against them. Inverse ETFs see gains when a market or index goes down. They can be less risky and less expensive than shorting stocks, but they can also be somewhat more costly than standard ETFs. After you find, evaluate, and invest in inverse ETFs, you can just sit back and wait for the sky to fall. Read More...

Jul 26, 2019 Never trust a get-rich-quick scheme. This may be the most important thing you need to know about penny stock promoters. Since they aren’t in it for you, here's a breakdown of what you need to know to protect yourself and your money. Read More...

Jul 12, 2019 The Volcker Rule was established after the Great Recession and financial crisis that took place between 2007 and 2009. Thanks to timely intervention by both the Bush and Obama administrations, the Great Recession stopped short of spiraling into an all-out second Great Depression. However, the consequences still made a big impact. As a result, economists proposed rules to help keep it from happening again. One of those reforms, packaged into the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, was the Volcker Rule. Read More...

Aug 08, 2019 A collateralized debt obligations, or CDO, is a financial instrument that institutions use to combine individual loans into one financial product that is then sold to investors on the secondary market. CDOs are one specific type of derivative that contributed to the Great Recession. In general, derivatives played a significant role in the collapse of the housing market and the fall of large financial institutions such as Lehman Brothers and Bear Stearns. Read More...

Jul 10, 2019 Tesla is one of the most popular American electric vehicle companies. Headed by CEO Elon Musk, the company designs, develops, manufacturers and distributes a variety of electric cars and vehicle powertrain components. In addition, it provides storage and energy generation products. Tesla’s success and global international product offerings have many investors looking to buy equity. But how do you invest in Tesla stock? We go over your options below. If you'd also like expert guidance with your financial decisions, consider using a financial advisor matching tool to pair you with local advisors… Read More...

Jul 18, 2019 Apple Inc. is a technology company that specializes in computer software, electronics, media devices and online services. Founded in 1976 by Steve Jobs and Steve Wozniak in Cupertino, California, the company now offers its products all around the world. In addition, Apple was the first publicly-traded U.S. company to reach a trillion dollar valuation. Given that consumers worldwide know and trust the company, investors, both new and experienced, are widely interested in buying equity in Apple. Below, we take a closer look at how to become an Apple shareholder. If you want further hands-on guidance with your investing strategy, consider enlisting the help of a trusted Read More...

Jul 19, 2019 Economic indicators are key stats about the economy that can help you better understand where the economy is headed. These indicators can help investors decide when to buy or sell investments. For example, if the stock market is at its peak, you may want to sell. If the market is low and on the rise, you may want to buy. Economic indicators can help you understand this ebb and flow of the market, as well as other important financial factors. Here are several of the different types of economic indicators and how they may be used to understand the state of the economy. Read More...

Jul 03, 2019 Limit orders are increasingly important as the pace of the market quickens. According to CNN, computer algorithms execute more than half of all stock market trades each day. Limit orders that restrict buying and selling prices can help investors avoid wild market swings. Read More...

Aug 15, 2019 Structured notes were beloved by Wells Fargo bankers. The SEC warns that they are incredibly risky for the average investor. Structured notes offer investors options that are otherwise unavailable, but there's reason to be wary of them. While structured notes do contain a bond element that is generally considered safe, the inclusion of stocks and derivatives can make them volatile. Read More...

Jul 17, 2019 In an interval fund, an investment company will regularly offer to repurchase shares from shareholders. Those repurchases come at various intervals, hence the name. Before you decide to invest in interval funds, though, it's worth considering how they function and what to expect. Read More...

Jul 02, 2019 Return on equity (ROE) measures how well a company generates profits for its owners. It is defined as the business’ net income relative to the value of its shareholders' equity. It reveals the company’s efficiency at turning shareholder investments into profits. Since ROE takes the net income from a business' income statement and the shareholders' equity from its balance sheet, it can be seen as the amount that would be left over for shareholders if the company liquidated its assets and paid off its debts. ROE helps investors choose investments and can be used to compare one company to another to suggest which might be a better investment. Comparing a company’s ROE to an average for similar companies shows how it stacks up against peers. Here's how ROE is calculated, plus how you can use it to Read More...

Jul 17, 2019 Mutual funds can simplify the diversification of your portfolio. Mutual fund share classes will determine just how much that diversification will cost. While mutual funds will let you invest in a collection of stocks and bonds through index funds or exchange-traded funds (ETF), mutual fund share classes may determine which fit your budget best. Read More...

Jun 28, 2019 As a business owner, your profit margins may be key to making money and  growing a company. Evaluating your profit margins can assist you with gauging the financial health of your company. In order for your business to succeed, you may need to earn enough to turn a profit and reinvest into your company. This is where profit margins come into play. Read More...

Aug 07, 2019 There are several stock markets around the world. The New York Stock Exchange, also known as NYSE, is the largest stock exchange in the world; the NASDAQ (also located in New York City) and Tokyo Stock Exchange aren't far behind. Stock exchanges are only open for trading during set hours, however. The NYSE and the NASDAQ are open Monday to Friday from 9:30 a.m. to 4 p.m. (Eastern Standard Time), and other stock exchanges have their own operating hours. Read More...

Jun 27, 2019 The Securities and Exchange Commission (SEC) regulates the financial world, enforcing securities law and overseeing financial advisors. Since it was born during the Great Depression, the SEC has been the chief overseer of markets and advisors and protector of investors. Still wondering what that job entails? Let's take a closer look. Read More...

Aug 07, 2019 Amazon is not only one of the most successful online retailers, but also one of the few trillion-dollar U.S. companies to offer stocks. Founded in 1994 by CEO Jeff Bezos, the company offers an array of products and services to customers on a global level. With its revenue and share price skyrocketing between 2017 and 2018, the company's growth rate has attracted both rookie and experienced investors. But how do you buy stock in Amazon? Below, we explore options for purchasing Amazon shares. If you want more hands-on guidance on your investment decisions, consider using a financial advisor matching tool to pair up with an expert in your area. Read More...

Jul 19, 2019 The discount rate is a financial term that can have two meanings. In banking, it is the interest rate the Federal Reserve charges banks for overnight loans. In investing and accounting, it is the rate of return used to figure what future cash flows are worth today. Read More...

Aug 16, 2019 As an investor, your objective is to balance the potential for returns with risk. When assessing risk, investors and financial advisors often apply the Sharpe ratio to their investment analysis. Just one popular method for evaluating stock, the Sharpe ratio is a tool of technical analysis that helps investors and portfolio managers determine  the return on investments compared to the risk. Here’s a closer look at the Sharpe ratio and how you can apply this calculation to your portfolio. Read More...

Jul 15, 2019 If you’re investing in mutual funds or exchange-traded funds (ETFs), the fund manager will charge fees to cover their various expenses. Those fees are collectively rolled into what’s known as an expense ratio, which is expressed as a percentage. This is the portion of your total account value that’s removed annually in fees. For more insight into mutual fund expense ratios and how to lower your costs, consider finding a trusted fiduciary financial advisor in your area. Read More...

Aug 21, 2019 Series A funding is the first round of capital after a seed round that a startup company raises from professional investors in order to grow the business. Starting a company takes money -- sometimes a lot of it. And after small business owners gather money from friends and family, dip into personal savings and take out a small business loan, they may turn to bankers and venture capitalists. Those investors are looking for high margins and companies with the potential for enormous returns. A fledgling tech or manufacturing startup will need to attract those investors in order to cover its increasing costs and set the company on the path to greater revenue and profit. Companies often complete Series A, B and C financing to achieve their goals. As you learn more about Series A funding and get interested in investing in a company or have a startup for which you're planning financing… Read More...

Aug 15, 2019 All safe investments come with a catch. They, alone, will never make you Bezos billions. They can, however, earn a little while serving another purpose such as being fairly liquid or balancing a portfolio. This roundup of safe investments explains their pros and cons to help you determine which investments best fit your needs. For even more detailed information, you may want to consult a financial advisor. Read More...

Jul 18, 2019 Default risk in bond investing refers to the chance that a bond-issuing company or government would fail to make its debt and interest payments. As a bond investor, you can lose 100% of your investment along with uncollected interest. But there are several steps you can take to hedge against default risk. You can also seek the guidance of a financial advisor who can help you make the right investment decisions. Read More...

Jul 18, 2019 As you invest and build a portfolio, you're likely to encounter common investing terms, such as "risk tolerance" or "diversification." One term you may be less familiar with is "stock buyback". In a nutshell, a stock buyback occurs when a company buys back its own shares from the market. But why would a company do that? And what impact does it have on your portfolio if you own shares of that company's stock? Here are the most important things to know about stock buybacks. Read More...

Aug 15, 2019 When an investment underperforms, tax-loss harvesting is a way to offset the tax impact of capital gains while maintaining your preferred asset allocation. Some robo-advisors even automate this process. The IRS allows investors to use realized losses to offset gains and reduce their ordinary taxable income by up to $3,000 per year. However, the IRS may disallow some of those losses if they break the "wash-sale rule." Read More...

May 22, 2019 Stock correlation describes the relationship that exists between two stocks and their respective price movements. It can also refer to the relationship between stocks and other asset classes, such as bonds or real estate.  Even if you've turned over control of your investments to an investment advisor, it's still a good idea to familiarize yourself with the basics of stock correlation. Read More...

Jul 23, 2019 Intimidating as it may seem, investing is one of the premier ways to grow money over time. While the stock market attracts the most attention for those looking to build wealth, there are plenty of other investments to pick from, such as bonds, mutual funds and certificates of deposit (CDs). As a beginner, though, it can be hard to know where and how to get into investing. In the end, a determination of your long-term financial goals, like retirement, will dictate what types of investing strategies are best for you. It can also be helpful to enlist the help of a financial advisor to help you make smart investing decisions based on your specific needs. Read More...

Aug 15, 2019 Exchange-traded funds, or ETFs, are popular investment securities that track stock market indexes, a particular commodity, bonds, or a particular category of assets like tech stocks.  A leveraged ETF is a particular type of ETF that uses debt or financial derivatives to boost the potential for returns. However, this also applies to losses, making leveraged ETFs somewhat risky investment choices. But like other investment, you must thoroughly evaluate them before making any final decision about whether they should occupy a spot in your portfolio. Read More...

Jul 18, 2019 Investment banking is a sect of the banking industry focused on raising capital for companies, governments and other entities. Investment banks, which are typically private companies, may underwrite debt and equity securities, assist with mergers and acquisitions, provide  financial advisory services and offer initial public offering (IPO) support when companies go public.  Read More...

Aug 15, 2019 An investment portfolio is a basket of assets that can hold stocks, bonds, cash and more. Investors aim for a return by mixing these securities in a way that reflects their risk tolerance and financial goals. For additional hands-on help, you should  find a financial advisor who can guide you through building an investment portfolio that’s right for you. Read More...

Aug 01, 2019 Investing in startups may seem like an opportunity that only exists for those willing and able to drop a few million into a fledgling tech company housed in a garage or a Stanford dorm room. While that type of investors exists and is certainly important, not all startup investors are ultra-wealthy finance industry titans. Some are average people who want to get in at the ground floor of a business they believe in. Many, in fact, are family members and friends of the people running the company. If you want to start investing in startups, this guide explains what you need to know to get into the game. Read More...

Aug 21, 2019 Building an investment portfolio means determining the right mix of assets to help you reach your goals for the short and long term. One of the more conventional approaches financial advisors and experts suggest is the 60/40 portfolio. Going this route can make portfolio-building simple, but it's not right for everyone. Read More...

Jul 23, 2019 There are many agencies and organizations in America that exist to protect consumers, including consumers on the investing markets. One of those organizations is the Securities Investor Protection Corporation (SIPC). The SIPC is a nonprofit, member-funded organization that helps clients of broker-dealers get their cash and assets back if the firm they are using liquidates or shuts down. It is technically not a government agency and regulating broker-dealers is not part of its mission. If you are working with a broker-dealer, make sure you know what protections the SIPC could offer you if things were to go… Read More...

Jul 19, 2019 Economic recessions can cost millions of people their jobs, retirement savings and financial security. During a recession, jobs are scarce, spending is down and it can be hard to see a path back to economic growth and a strong stock market. However, recessions are a normal and inevitable part of a business cycle. As such, it pays to know the warning signs of a recession so you can prepare. There are several economic factors you can keep tabs on to know when a recession might be on the horizon. Read More...

Mar 25, 2019 If you are an investor, the current ratio is a measure you’ll likely want to use to analyze the companies in which you are considering investing. The current ratio is a liquidity measure. It determines whether a company is likely to be able to pay its short-term obligations. There is a relatively simple formula you can use to find the current ratio. From there, you can use it to decide whether or not a company is a good investment. If all of this sounds overwhelming, consider finding a financial advisor to help you with SmartAsset’s free financial advisor matching service. Read More...

Mar 18, 2019 FINRA BrokerCheck is a free, online research tool providing information about individual brokers, investment advisors and the firms that employ them. The database contains details like registrations, employment history and any disciplinary disclosures. This article will show you how to use FINRA BrokerCheck and what to look for in order to make the best decisions about whom to work with. You can also use our financial advisor matching tool to find a professional near you. Read More...

Jul 23, 2019 The Series 66 license is required to work as an investment advisor in the United States. To obtain it, you must pass a rigorous exam covering methods of delivering investment advice and other topics. Below, we'll tackle what the exam is, what exactly it covers and how you can best prepare. Read More...

Jul 23, 2019 Gross domestic product (GDP) measures the market value of all goods and services a country produces in a specific time frame. It’s used to gauge a nation’s economic growth and its people's standard of living. GDP also guides investment decisions and economic policy that affects everyone. This article will explain GDP, how it works and why it matters. A financial advisor can also help you understand GDP to make better investing decisions. Read More...

Jul 25, 2019 Investing in government bonds is a great way to diversify your investment portfolio. This is because your money is backed by the full faith of the U.S. government, so there's virtually no risk of default. This stability is what makes U.S. Treasury securities attractive to both risk-averse investors and those looking to hedge against riskier investments. A simple and popular way to purchase Treasury securities is through Treasury Direct, an online platform that the Treasury Department sponsors. Read More...

Mar 08, 2019 Passing the Series 7 exam registers you to sell and trade most securities as a financial services professional. The exam covers several topics including investment products and their potential risks, as well as regulations you must follow. This article explores the exam in depth and provides tips on how to prepare for it. Read More...

More articles...

About Our Investing Expert

Have a question? Ask our Investing expert.