- Beginner’s Guide to Platinum Investment
Platinum, a precious metal, is used in the industrial and manufacturing markets, particularly in vehicle pollution control devices. As the global economy rebounds from the pandemic, platinum’s price is likely to rebound since it is used in manufacturing. It also… read more…
- Beginner’s Guide to Natural Gas Investing
Natural gas investing is a bet on the prospects of the oil and gas energy sector. The industrial and manufacturing sectors use natural gas for a variety of applications, including residential heating and cooling, buses and cars powered by natural gas, electric power generation and a wide variety of manufactured industrial products. Natural gas investing… read more…
- Futures vs. Stocks: Key Differences
Futures and stocks are two of the major classes of financial assets available to retail investors. They each may offer returns on your investments, but for different reasons. Both have significant risks, but futures are generally considered riskier than stocks.… read more…
- Distribution vs. Dividend: Key Differences
When it comes to investing, understanding the difference between a distribution and a dividend is essential for making informed financial decisions. While these terms are often used interchangeably, they refer to distinct concepts that can impact your investment returns and tax obligations in different ways. A dividend typically refers to a payment made by a… read more…
- Dividend Rate vs. Dividend Yield: What They Tell Investors
Investing in dividend-paying stocks can be an attractive option for those seeking steady income. With a wide range of dividend stocks available, making informed financial decisions requires a solid understanding of how these investments work. Key concepts to grasp include the dividend rate — often simply called a dividend — and the dividend yield. Understanding… read more…
- Regulation D Exemptions: Financial Advisor Guide
Before companies can go public and list their shares for trade on an exchange, there are some regulatory hoops they need to jump through first. Federal securities laws require any offer or sale of a security to be registered with… read more…
- How to Read Stock Charts: An Investor’s Guide
Starting your journey as a new investor can feel overwhelming, especially when faced with the need to learn certain foundational skills. One key skill worth mastering is reading stock charts. These charts provide a snapshot of a stock’s performance at any given moment, offering valuable insights. At first glance, stock charts might appear complex, but… read more…
- What Investors Need to Know About Meme Stocks
Investing trends come and go, and the rise of the meme stock is one of the latest to make the rounds. Defining meme stocks is difficult, but generally they’re stocks that manage to gain a lot of attention from investors thanks largely to social media chatter. They may be value stocks, growth stocks; they may… read more…
- What Is a Leveraged Buyout?
A leveraged buyout (LBO) occurs when one company acquires another using debt as the means to complete the acquisition. LBOs allow companies to purchase other companies without tying up significant amounts of their own capital reserves. The company that’s executing a… read more…
- Warrants vs. Options: Which Should You Buy?
Publicly traded companies can issue stock warrants and stock options to attract investors and raise capital. A warrant gives an investor the right to buy a stock at a set price by a specific date. A stock option conveys the right to buy or sell a stock at a certain price by a predetermined date.… read more…
- Premium vs. Discount Bonds: Which Should You Buy?
Bonds can help to balance out risk in a portfolio while also generating income in the form of interest from regular coupon payments. When a bond is issued it’s assigned a fixed par value and a set maturity date. A… read more…
- Ex-Dividend Date vs. Record Date: Key Differences
Investors who rely on dividend income must understand four critical dates to effectively manage and plan their investments. These dates include the declaration date, the ex-dividend date, the record date and the payment date. While the declaration and payment dates are generally straightforward, the ex-dividend and record dates often create confusion among investors. The nuances… read more…
- Mutual Funds vs. Stocks: Key Differences
Mutual funds and stocks each offer specific types of advantages to investors. In general, stocks tend to offer higher returns while mutual funds tend to offer greater stability. The right one for you will depend on your goals, risk profile and investment strategy. To find out which works best for you, here is a comparison… read more…
- Understanding Devaluation and How It Affects You
If you’ve ever traveled to another country, you’ve probably noticed that exchange rates change over time. When you exchange money, you might get more or less than you expected. One reason for this difference is currency devaluation. Understanding devaluation is important not just for travelers but also for investors who deal with multiple currencies. Here’s… read more…
- What Is a Secondary Offering? How Does It Work?
Companies sometimes need capital to help with acquisitions and expansions. While an initial public offering (IPO) can help with that early in a company’s life, a company may have to return to the public sale of shares to generate more money. However, while post-IPO offerings can help a corporation, they can dilute the value of… read more…
- Sector vs. Industry: Stock Market Definitions
Two of the more common business terms you may hear are “sector” and “industry.” They are often used to describe the same thing, but they’re not actually the same. Within the world of business and finance each one has a precise – and distinct – meaning and one shouldn’t be confused with the other. If… read more…
- Investor’s Guide to Cyclical Stocks
One of the most common categories of investment securities is known as cyclical stocks. These are shares in companies that are sensitive to economic or business cycles. When an economy is contracting there prices are particularly vulnerable to a downturn; when an economy is expanding their prices are more likely than other categories of stocks… read more…
- Understanding Reversion to the Mean
Do prices eventually return to normal? Will housing prices decline to more sustainable levels, and can blockchain tokens find long-term stability? Do stock prices always recover after a crash, or is the idea of a financial reset just a myth? These questions touch on the concept of reversion to the mean, a fundamental principle in… read more…
- Hedge Fund vs. Index Fund: Key Differences
Index funds minimize risk by tracking a market metric, like the S&P 500 or a specific industry as a whole. Hedge funds maximize profits by taking high-risk positions and making investments that mitigate those risks. Below we’ll review what you need to know about these radically different investment vehicles. You can also consider working with… read more…
- How Does a Strangle Option Work?
The strangle is an options strategy that you create out of multiple options contracts to maximize your upside while minimizing your risk. With the strangle, you generally believe you know which direction the underlying asset will move. Your position emphasizes this expected movement, but at the same time you open a second option contract to hedge your… read more…
- How Does a Straddle Option Work?
The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on the expectation of volatility. This position profits if prices change in a big way, and it tends to lose money if prices… read more…
- Dividend vs. Growth Stocks: Key Differences
Investors use various strategies to select stocks, focusing on industries, price trends, or key metrics. A common approach is choosing between dividend and growth stocks. Dividend stocks generate income through regular payouts, while growth stocks offer returns through price appreciation and capital gains. Here’s how each works. Reading articles like this can equip you to… read more…
- Investing in Options vs. Stocks: Which Is Best for You?
Trading stocks and buying options are two types of investments, though the former is more common than the latter. Each one has strengths, and each one carries potential downsides. The differences don’t preclude investors taking advantage of what each one has to offer. Here’s what you need to know about these two financial moves. Consider… read more…
- Direct Indexing: What It Is and How It Works
Many investors use mutual funds and exchange-traded funds (ETFs) to diversify their portfolios, even when their balances are small. But there’s an alternative that offers several potential advantages to mutual fund and ETF investing. Known as direct indexing, it’s a technique that’s been available for decades, but costs and technological hurdles made it appealing primarily… read more…
- SPAC vs. IPO: Key Differences
In the last few years, something called a special purpose acquisition company (SPAC), has become a popular way to raise capital. A SPAC, also known as a blank check company, bears some resemblance to an initial public offering (IPO), which is a more well-known means of raising capital. But there are key differences. In both… read more…