- An Investor’s Guide to Short-Term Bond Funds
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… read more…
- What Is Quantitative Easing?
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… read more…
- What Is Corporate Social Responsibility?
Corporate social responsibility is the idea that a company. However, they are obviously driven primarily by a profit motive and have the duty to think about how their business impacts the world and to minimize harm and maximize positive societal… read more…
- What Are Commodity Mutual Funds?
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… read more…
- A Guide to Utility ETFs and Mutual Funds
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… read more…
- Pros and Cons of Market Neutral Funds
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… read more…
- What Is Equity?
Equity refers to the value of a company’s own shares. This is most often utilized in the context of a company’s balance sheet, and there is a specific calculation that dictates its valuation. More specifically, equity is the complete, liquid… read more…
- A Guide to Portfolio Optimization Strategies
Portfolio optimization is one of the most basic skills you’ll need to acquire when actively managing your investments. With regular portfolio reviews, you can make adjustments to increase the likelihood you’ll end up with comfortable returns instead of frustrating results.… read more…
- What Are Managed Futures?
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… read more…
- A Guide to Global Real Estate Investing
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… read more…
- Wall Street vs. Main Street
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… read more…
- What is a Market Maker and Why Do We Need Them?
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.… read more…
- What Is the Sortino Ratio and How Do You Use It?
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… read more…
- What Is the Money Market? Why Is Your Money There?
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,… read more…
- Using the Kelly Criterion in Your Investment Plans
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… read more…
- What Is the S&P 500 Average Annual Return?
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… read more…
- Stock Market Bubbles: Definition and Examples
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… read more…
- What Is the Series 27 Exam and License?
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… read more…
- What Are Registered Representatives?
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… read more…
- Hypothecation: Meaning, Risks and Examples
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… read more…
- Algorithmic Trading: Definition and Use Cases
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,… read more…
- What Is Price Action Trading and How Do You Do It?
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… read more…
- Primary Market: Definition and Examples
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… read more…
- How a Smart Beta Investing Strategy Works
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… read more…
- Entrepreneur: What It Takes To Start a Business
Simply put, an entrepreneur is someone who starts a business. But in the age of Bill Gates, Jeff Bezos and Elon Musk, entrepreneurs hold a revered place in the public imagination. They have become identified with special intelligence, visionary powers… read more…