- A Guide to FAANG Stocks and Funds
The FAANG stocks are a collection of five high-value securities in the tech sector and some of the most valuable shares traded on the U.S. exchanges. Together they are Facebook, Amazon, Apple, Netflix and Google. The stocks in the FAANG… read more…
- What Is the Russell 2000 Index?
The Russell 2000 Index is a stock market index that measures the performance of approximately 2,000 of the smallest-capitalization U.S. corporations in the Russell 3000 Index, which is made up of 3,000 of the largest American stocks. It is a useful alternative to… read more…
- What Is a Japanese Candlestick Chart?
Perhaps the single greatest mistake that investors make is the idea that trading is a purely technical practice, one driven exclusively by the logic of numbers. But the truth is that traders work on emotion just as often as they… read more…
- What Is a Blend Fund?
Mutual funds and exchange-traded funds can make investing easier. Instead of buying individual stocks or bonds, you can buy a collection of them in a single fund. But all mutual funds aren’t the same, and it’s important to know what… read more…
- Balance Sheets vs. Income Statements
Three financial documents can evaluate the health of a business: the balance sheet, the income statement and the cash flow statement. Each measures and reports on different aspects of a company’s financial condition. However, the balance sheet and income statement… read more…
- What Is a Sovereign Wealth Fund?
Personal investing is one thing, but can governments invest too? (Hint: The answer is yes.) A sovereign wealth fund, or SWF, is a state-owned investment fund that taps into a country’s cash reserves. The goals of an SWF are to… read more…
- Alternative Investments: What Investors Need to Know
Want to go beyond stocks, bonds and cash? Alternative investments can include everything from real estate to fine art. If you’re looking for another way to diversify your portfolio, alternative investments may be worth considering. Read on to discover if… read more…
- Why Time Horizons Matter in Investing
Your time horizon is a crucial element of your investing plan. By understanding your time horizon you can select the most suitable investments to help you achieve your financial goals. Read on to discover what a time horizon is, why… read more…
- A Guide to Investing in Bear Market Funds
Due to trade war fears, policy uncertainty and a host of other factors, investors are leery about what the future holds for the stock market. But certain funds are designed to bet against the market or weather a bear market.… read more…
- What Is an Outsourced Chief Investment Officer?
Many companies have a chief investment officer (CIO), someone who’s in charge of a company’s financial assets. They typically manage long-term investments, portfolios of securities, pension funds, ensure adequate liquidity and a team of financial experts. Not all companies need to hire… read more…
- 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 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…
- 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…
- 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 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…
- 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…
- 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…
- 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…
- What Is the Fintech (Financial Technology) Industry?
There was a time when finances and technology were separate, like church and state. If you needed money, you went to the bank. If you wanted to play games, you used a machine. But now, there is fintech: The marriage… read more…