- What Is the Yield Curve?
A yield curve is an economic indicator that tracks the relationship between long- and short-term bond yields. More specifically, it looks at the difference between short- and long-term interest rates in an effort to predict future market and rate movements.… read more…
- A Comprehensive Guide to Dark Pool Investing
There’s one main reason someone would choose to conduct dark pool trading: It allows them to initiate trades without influencing the stock market. In turn, dark pool investing is a straightforward solution specifically for large-scale investors. That means you probably won’t need to get involved with it, since your trades are unlikely to affect the entirety of… read more…
- What Are Call Options and How Do They Work?
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… read more…
- What Is Coupon Rate and How Do You Calculate It? Formula and Example
b The coupon rate is the fixed annual rate at which a guaranteed-income security, typically a bond, pays its holder or owner. It is based on the face value of the bond at the time of issue, otherwise known as… read more…
- How to Calculate Compound Annual Growth Rate (CAGR)
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 need a financial advisor, the CAGR formula can help you… read more…
- What Is the Principal of an Investment Account or Loan?
In investing, the principal is the cash you put into an investment account. If you’re borrowing money, the principal is the actual amount you borrow, before interest begins to apply. For both loans and investment accounts, the principal represents the foundation upon which everything else is paid off or built, respectively. It’s a fundamental concept… read more…
- How Inverse ETFs Work
While a typical exchange-traded fund (ETF) lets you invest in a sector, index or industry, an inverse ETF lets you bet against them. Inverse ETFs see gains when a market or index goes down. They can be less risky and… read more…
- Penny Stock Promoters: What to Watch Out for
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. What Is a Penny Stock? Historically, penny stocks have been considered any stock… read more…
- What Is a Collateralized Debt Obligation (CDO)?
A collateralized debt obligation, or CDO, is a financial instrument that institutions use to combine individual loans into one financial product. These products are then sold to investors on the secondary market. CDOs are one specific type of derivative that… read more…
- How to Buy Tesla Stock
There are a number of ways to buy Tesla stock, but the simplest are to do it either through a brokerage account or with the help of a financial advisor. Tesla is one of the most popular and innovative American… read more…
- How to Buy Apple Stock
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… read more…
- Economic Indicators: Definition, Types, Examples and Usage
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… read more…
- How Limit Orders Work in Stock Trading
Limit orders are increasingly important as the pace of the market quickens. 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 portfolio damage from… read more…
- What Are Structured Notes and How Do They Work?
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’s generally considered safe, the inclusion of stocks and derivatives can make them a bit… read more…
- What Are Interval Funds, and How Do They Work?
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… read more…
- Return on Equity (ROE): Definition and Examples
Return on equity (ROE) measures how well a company generates profits for its owners. It is defined as the business’s net income relative to the value of its shareholders’ equity. It reveals the company’s efficiency at turning shareholder investments into profits.… read more…
- The Different Types of Mutual Fund Classes
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. Mutual… read more…
- How Are Profit Margins Defined and Measured?
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… read more…
- What Are the Hours of the Stock Market?
The stock markets that most Americans use – the New York Stock Exchange (NYSE) and the NASDAQ – are both open Monday to Friday from 9:30 a.m. to 4 p.m. Eastern Standard Times. Other stock exchanges in different parts of the world – the London Stock Exchange in the U.K or the Tokyo Stock Exchange… read more…
- The Securities and Exchange Commission (SEC)
Created in response to the Great Depression, the U.S. Securities and Exchange Commission (SEC) is largely responsible for protecting investors in U.S. securities. The federal agency does this by overseeing key players (including brokers, investment advisors and stock exchanges), making sure public companies disclose required information and protecting against fraud. Put simply, it exists to… read more…
- How to Buy Amazon Stock (AMZN)
Amazon (AMZN) is not only one of the most successful online retailers, but it’s also one of the few trillion-dollar U.S. companies that offers stocks. Founded in 1994 by Jeff Bezos, the company offers an array of products and services… read more…
- What Is Discount Rate and Why Does It Matter? – Definition and Example
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. Despite its name, the discount rate is not reduced. In fact, it’s higher… read more…
- The Sharpe Ratio: Definition and How to Use It
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… read more…
- Understanding Mutual Fund Expense Ratios
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… read more…
- What Is Series A Funding and How Do You Get It?
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… read more…