- Forex vs. Stocks: Key Differences
The foreign currency market (forex) has a lot in common with the stock market. Both are speculative ways of investing, meaning that they offer higher risks and higher rewards than many other assets. Both markets move faster than many other investments, and like most investments, both have grown with the rise of online investment platforms. Forex… read more…
- Stocks vs. Shares: Definitions and Distinctions
Investors tend to use the terms “stock” and “share” interchangeably, and usually that’s fine. A stock comes in shares and you buy a share of stock. But these ideas aren’t always interchangeable. Technically speaking, a stock always refers to equity in a traded company. Shares can refer to stocks, as well as to portions of ownership… read more…
- What Are Micro Futures and How Are They Traded?
Micro futures offer a way for investors to engage with the broader stock market. These contracts are designed to be affordable for individual investors, providing access to futures trading on the major market indexes, which have become prohibitively expensive for many. We’ll review what micro futures are and how they function. If you’re considering incorporating… read more…
- Beginner’s Guide to Copper Investing
Copper has resurged in demand, particularly in the industrial sector, rising roughly five times in value from 2001 to 2022. It is a versatile metal used heavily in home building, electronics, electrical conductivity, automobiles and infection control. It will benefit… read more…
- Understanding How Futures Are Traded
Futures trading is a fast-paced, risky and sometimes lucrative strategy that is most often used for hedging and speculation. Futures contracts are the trading vehicle. They call for the purchase or sale of an asset at some future date but at a price that is fixed today. The world’s largest marketplace for futures trading, CME… read more…
- Futures vs. Forwards: Key Differences
Futures and forwards offer an alternative to traditional stock investing. Both are types of derivative investments, in that their values are based on the value of underlying assets. Regardless of whether you’re investing in futures vs. forwards, both involve an agreement to buy and sell an asset at in the future. Here’s what you need… read more…
- Understanding the Dividend Growth Model
Dividend growth modeling helps investors determine a fair price for a company’s shares, using the stock’s current dividend, the expected future growth rate of the dividend and the required rate of return for the individual’s portfolio and financial goals. The dividend growth model is relatively easy to perform and can provide a helpful way to… read more…
- ETN versus ETF: Key Differences
As exchange-traded funds (ETFs) and exchange-traded notes (ETNs) continue to grow in popularity, investors often debate the advantages and disadvantages of each. Both options can help diversify a portfolio, but they come with distinct benefits and risks. While ETFs and ETNs share similarities, they also have key differences that are important to understand before making… read more…
- Understanding Underweight Stock Ratings
Financial analysts who are employed by investment firms research stocks and provide their opinions to investors about their possible future performance. Their opinion takes the form of a rating. An Underweight stock rating indicates to investors that it may not be a good investment. In other words, if a stock is rated by Wall Street… read more…
- How to Buy Nikola Stock (NKLA)
Nikola is an American automotive company focusing on creating zero-emission trucks. It was founded in 2014 and is based in Phoenix. Like Elon Musk’s popular electric car company, Tesla, Nikola is named for famous inventor Nikola Tesla, though it has no actual connection to the man. Though Nikola has produced several interesting vehicle concepts, it… read more…
- What Is Cost Basis and How Is It Calculated?
The cost basis of an asset is important to you for two primary reasons: tax planning and investment planning. These two reasons are related because only with the proper investment planning can you own a tax-efficient portfolio. You need to understand cost basis in order to plan the investment horizons of the various securities in… read more…
- What Is a Good Dividend Yield?
Dividends are regular cash payments corporations make to shareholders to incentivize investment. The dividend yield is a percentage figure calculated by dividing the total annual dividend payments per share by the stock’s current share price. From 2% to 6% is considered a good dividend yield, but several factors can influence whether a higher or lower… read more…
- ETF vs. Stock: Key Differences
Owning stocks is important for driving returns in a portfolio. But one question to consider is whether it makes more sense to invest in individual shares or an exchange-traded fund (ETF) that includes a basket of stocks. Choosing between an ETF and one or more stocks can depend on your risk tolerance and goals, as… read more…
- Bisq Review 2025: Fees, Services and More
Bisq, formerly known as Bitsquare, is a decentralized cryptocurrency exchange with servers located around the globe. Bisq’s decentralized autonomous organization (DAO) means it isn’t headquartered in any one location or country, which gives it a number of advantages. You can use… read more…
- Stock Buybacks vs. Dividends: Key Differences
Stock investing can offer numerous rewards, including the potential to benefit from dividend payouts or buybacks. Both can increase investor returns but there are some significant differences in the tax treatment of stock buybacks vs. dividends. Whether it makes sense… read more…
- Investor’s Guide to Hedging
One of the most important aspects of investing is knowing how to manage risk. This is where hedging comes into play. A hedge can be a particular investment or investment strategy that’s designed to insulate your portfolio against risk. Hedging… read more…
- When Should You Reinvest Your Dividends?
Investing in dividend-paying stocks or ETFs offers the opportunity to generate passive income. If you don’t need this income immediately, reinvesting dividends — using them to purchase additional shares of the same stock or ETF — can be a powerful strategy for compounding growth. Over time, this approach leverages the effects of compounding by increasing… read more…
- How and When Dividends Are Paid
Dividends can provide extra income or help grow your investment if you reinvest them in more shares. Many investors wonder how often dividends are paid, and it’s important to understand the process. Typically, companies pay dividends every quarter, but some may distribute them monthly or annually. To know when you’ll receive dividends and whether you’re… read more…
- How to Buy Carnival Stock (CCL)
Carnival Corporation (ticker symbol: CCL) is a large British and American cruise operator with its headquarters located in Doral, Florida. Carnival went public on the New York Stock Exchange (NYSE) in 1987 at a price of about $4 per share. Since then, the stock reached a historic high of about $70 in early 2018. However, at… read more…
- Understanding the Dividend Discount Model
Stock pricing may play a part in determining which companies to add to your investment portfolio. And the dividend discount model (DDM) is a commonly used method for measuring valuations. This model bases value calculations on present and future dividend payouts rather than current market conditions. If you’re a value investor, you can use the… read more…
- How to Calculate Your Dividend Payout Ratio
The dividend payout ratio can be a helpful metric for comparing dividend stocks. This ratio represents the amount of net income that a company pays out to shareholders in the form of dividends. The dividend payout ratio, or DPR, doesn’t necessarily tell you how financially healthy a company is, but it can tell you how… read more…
- What Is an Option Premium?
An option premium is the fee that the buyer of an option contract pays for the right to buy or sell stocks or other securities at a pre-set price when the contract’s time limit expires. From the perspective of the option seller, the premium is the fee received in exchange for the obligation to buy… read more…
- How and When Do ETFs Pay Dividends?
Exchange-traded funds (ETFs) generally offer two strategies for investing. One approach emphasizes traditional capital gains growth. So as products listed on an exchange, ETFs are highly liquid assets, meaning you can buy and sell them like ordinary stocks and collect the difference when their value grows. The other strategy emphasizes income investing, as an ETF would… read more…
- Understanding Dividend Record Dates
The dividend record date establishes when shareholders are eligible to receive dividend payments. Anyone who owns shares before the record date will collect the dividend, while anyone who owns shares afterward will not. In order to qualify for a dividend payment you must have completed your purchase of the company’s shares at least two business… read more…
- Beginner’s Guide to Dividend Growth Stocks
When it works, dividend growth investing is a best-case scenario for income investing. In this strategy you buy a stock that not only grows in value year after year, but it also pays you a steady yield in the process. On top of that, the payments themselves grow each year as the company earns value. With… read more…