- An Introduction to Options Trading
An option contract is a versatile financial instrument classified as a “derivative.” By purchasing an option contract, you gain the right – but not the obligation – to buy or sell an underlying asset under specific terms. These terms include a predetermined price (known as the strike price) and a set expiration date. As the… read more…
- What the Great Wealth Transfer Means For the Economy
The Great Wealth Transfer is coming. More than 10,000 baby boomers are turning 65 every day, and over the next 20 to 30 years trillions of dollars’ worth of wealth will transfer to their children. It will cause some changes… read more…
- Where Retirees Are Moving – 2020 Edition
In 2018, roughly 930,000 people ages 60 and older moved across state lines, an increase of about 16% from five years earlier. Whatever reasons factor into their decisions, whether financial or personal, retirees must thoroughly consider the implications of moving, such as different tax rates and housing costs in new locales. That’s why speaking to… read more…
- Should You Pay Attention to a Stock’s Trading Volume?
Investors monitor stock volumes closely to confirm market trends and make informed decisions about which stocks to buy or sell within their portfolios. Trade volume, essentially the number of shares traded over a given period of time, can provide key insights into market interest and momentum. For example, a high trading volume may indicate strong… read more…
- What Does an Investment Committee Do?
Workplace retirement plans, such as 401(k)s or pension plans, are governed by a complex set of rules and regulations that can be challenging to navigate. These plans are often overseen by an investment committee responsible for managing the plan’s assets and ensuring compliance with fiduciary duties. A financial advisor can also help you decode these… read more…
- Is Couch Potato Investing Right for You?
When creating a portfolio for retirement or other investment goals, it’s all about strategy. Investing like a couch potato essentially means taking more of a hands-off approach to your portfolio. If you’re curious about how to couch potato investing works,… read more…
- Alternative Beta: Definition and Uses
It’s tough to find a clear definition for “alternative beta.” Investors love to talk about this concept. It has become a hot topic among investors. But most of them publish articles on the subject of why alternative beta is good… read more…
- The Black-Litterman Model of Asset Allocation
The Black-Litterman (BL) model is a mathematical technique used to create investment portfolios that maximize return for a given level of risk while also limiting the influence of human bias. It was developed in the 1990s to improve mean-variance optimization (MVO) or modern portfolio theory, a method that was created in the 1950s. This BL… read more…
- States With the Largest Tax Bills – 2020 Edition
If you’re expecting a big refund, tax season can be a pleasant time of the year. There is always a chance, though, that you could end up actually owing the government money. Some taxpayers are able to cover those costs, while others have to turn to alternatives like payment via installment plan. With taxpayers meeting with… read more…
- What Is Treasury Stock?
Companies of all sizes repurchase outstanding shares of their stock for a variety of reasons. It can help boost share prices or save some shares as incentives for a company’s employees. Repurchased shares are known as treasury stock. Here’s how… read more…
- Economic Shocks: Definition and Examples
An economic shock, also known as a macroeconomic shock, is any unexpected event that has a large-scale, unexpected impact on the economy. Many, but not all, economists also say that a shock has to be “exogenous,” meaning that it comes… read more…
- What Is Intrinsic Value?
You know how much you paid for an investment. But do you know how much it’s actually worth? While the value of most assets equates to market value, intrinsic value implies the investor’s perceived value of an asset. Learn the… read more…
- Hot Money: Definition and Examples
Hot money refers to a type of short-term investment strategy where investors shift their funds quickly between financial markets to capitalize on interest rate changes. This practice often involves moving money across countries and currencies, seeking the highest returns in the shortest time. The term “hot” reflects the transient nature of these investments, as the… read more…
- How to Spot an Undervalued Stock
Investing in undervalued shares could give your portfolio a boost if they eventually see significant price appreciation. The concept of value investing, developed by Benjamin Graham and popularized by Warren Buffett, essentially means investing in shares that are undervalued by… read more…
- How to Buy an Investment Property
For conservative investors, the stock market holds huge risks. If that’s you, maybe you stick to high-yield savings accounts or low-cost index funds or ETFs. However, investors willing to take a bigger risk may invest in properties. Here’s how to… read more…
- Operating Income vs. EBITDA: What’s the Difference?
When assessing the financial performance of a corporation, there are numerous useful metrics you can examine. Two of the main ones are operating income, which is profit minus operating expenses; and earnings before interest, taxes, depreciation and amortization, more commonly… read more…
- Buy-Side vs. Sell-Side Investment Analysts
Reading up on investment analysis can help you better understand market trends as you make decisions in your portfolio. Buy side vs sell side analysts are two very different approaches to investing. If you’re unfamiliar with those terms or how… read more…
- NASDAQ vs. NYSE: Key Differences
American stocks trade primarily on the New York Stock Exchange and NASDAQ. The NASDAQ has a reputation as a more high-tech exchange. Meanwhile, the New York Stock Exchange, or NYSE, has a stodgier, but safer, reputation. Learn the similarities and… read more…
- Managed Volatility Investing Strategies and Funds
Managed volatility investing strategies are designed to mitigate some of the risks associated with uneven stock market movements. Managed volatility mutual funds have become increasingly popular for helping investors to balance downside risk in their portfolios without sacrificing returns during… read more…
- Stop-Loss vs. Stop-Limit Orders
Investors often use trading instructions, known as orders, to specify actions they want within their portfolio. Stop orders, for instance, are triggered to buy or sell when a selected asset reaches a certain price. The two primary types of stop orders are stop-loss and stop-limit. A stop-loss order enables buying or selling when an asset… read more…
- How Class A, B and C Shares Differ
Shares of publicly traded corporations are not all created equal. Some company shares, which are also called stocks or equities, give owners greater benefits or voting rights than owners of other classes of stock. The corporation’s owners can create the… read more…
- What Counts as Discretionary Income?
Discretionary income is a term commonly mentioned in conjunction with budgeting and student loans. Essentially, it’s the amount of money you can spend or save after you take care of all necessary expenses and income taxes. Discretionary income usually changes… read more…
- Certificate in Investment Performance Measurement (CIPM)
An investment’s performance could mean the difference between a comfortable retirement and a few more years of work. Therefore, it’s vital for financial planners and investment managers to accurately assess investment performance for their clients. A Certificate in Investment Performance… read more…
- Public Investing App Review
Public, formerly known as Matador, is a stock-trading app designed for beginner investors, launched in March 2019. While it shares similarities with other beginner-friendly investing platforms like Robinhood, Public stands out with its unique social networking features. The app allows users to follow friends and popular investors, gaining insight into what others are buying and… read more…
- The Cost of Baby Formula
The cost of baby formula in the U.S. has skyrocketed – and that’s if you can find any. Whereas in 2019 name brand baby formula cost American parents anywhere from 9 cents per ounce to 32 cents per ounce, by… read more…