- How to Buy Bonds: A Complete Guide
There are a number of ways to buy bonds: directly from the U.S. Government, via a bond fund or with the help of a broker. Before you make your purchase, it’s important to understand what types of bonds there are, and how… read more…
- What Is an Institutional Investor?
Not all investors in the stock market are individuals who buy and sell their own hand-picked stocks and bonds. Some are large entities trading securities on a large scale, usually on behalf of individuals: Pension plans, mutual funds, commercial banks and more. Such entities are known as institutional investors, and they account for the majority… read more…
- What Is Carried Interest?
If you were paying close attention to the presidential race, you may have heard someone say something about carried interest. Or maybe you have finance friends who’ve mentioned this term in passing. Either way, if you’re not sure what carried… read more…
- What Is Arbitrage?
Arbitrage is the buying and selling of assets, profiting from the price difference between the price paid to buy and the price at the time of sale. In a successful arbitrage deal, the turn-around time between buying and selling is minimal and the transaction costs (the cost of buying the goods and bringing them to… read more…
- What Does the World Trade Organization Do?
Although the World Trade Organization (WTO) affects all of us, many people aren’t very familiar with it. You might remember hearing about it over the years since its beginnings in 1995. If you had no idea that it exists, don’t worry. We’ll explain what the organization does and discuss what critics have to say about it.… read more…
- What Is a Good Debt-to-Equity Ratio?
Investors often consider a company’s debt-to-equity ratio when evaluating the stock. If the number is roughly 4, it means that for every shareholder dollar, there is $4 of debt. What’s high or low, or good or bad, depends on the… read more…
- What Is the TPP?
The Trans-Pacific Partnership (TPP) is one of the hot-button issues that has been mentioned repeatedly throughout the course of the 2016 presidential race. Constituents and politicians on both sides of the aisle have strong opinions about whether or not the TPP… read more…
- Pros and Cons of Venture Capitalism
If most of your investments are tied up in bonds or stocks, becoming a venture capitalist is one way to diversify your investment portfolio. But jumping into it isn’t something any investor should do without understanding what it involves. If… read more…
- Top 5 Tips for New Investors
Investing can be intimidating, especially when you’re doing it for the very first time. It’s easy to get confused and overwhelmed when trying to understand financial terminology and many new investors worry about making a false move. If you’re nervous… read more…
- What Does It Mean to Have a Strong Currency?
Because of Brexit, the pound – i.e., British currency – has just plunged to a thirty-year low against the dollar. The euro has also fallen to a low against the dollar. The Japanese yen’s value has also gone up in… read more…
- What Is an American Depositary Receipt?
Diversifying your investment portfolio doesn’t just involve investing in different types of stocks or bonds. By investing in foreign markets, you can lower your overall investment risk and potentially increase your earnings at the same time. If you’re interested in investing in an international market, one way to get started is to get an American… read more…
- What Is a Shell Company, or Corporation, and How Is It Used?
The Panama Papers leak was a global scandal. In one of the biggest data leaks in history, millions of documents revealed that banks, political leaders and wealthy individuals had allegedly hidden billions of dollars in shell companies through a Panama law… read more…
- What Is Dollar-Cost Averaging?
There’s more than one way to invest. Besides choosing a vehicle to put your money into, you’ll need to pick an investing strategy. The one that you select will depend on various factors, including your target asset allocation and the kinds of… read more…
- What Is a Non-Traded REIT?
If you’re looking to build a thriving real estate portfolio without the hassle of direct property ownership, there are several strategic options to consider. For instance, you could explore real estate crowdfunding platforms or invest in a real estate investment trust (REIT). A REIT is a company that owns and manages income-generating commercial properties like… read more…
- Accounting vs. Finance: What’s the Difference?
While accounting and finance may go together, there are key differences: accounting focuses the flow of money and out of a company or family, while finance is a more broad term that describes how one manages asset and liabilities. Whether… read more…
- All About Stagflation
Inflation becomes a problem when average prices rise too fast, hurting consumers, businesses and investors. Deflation can wreak havoc on an economy as well. There’s deflation when growth is slow and overall prices are on the decline. Yet another issue that… read more…
- What Are the Causes of Inflation?
Inflation has many causes, but they mainly break down into two camps: demand-pull and cost-push. Demand-pull happens when an increase in the demand for goods and services leads producers to raise prices to maximize profits. Cost-push occurs when producers raise… read more…
- What Is Compound Interest?
Investing requires quite a bit of time and effort. In order to choose the right mix of stocks, bonds and cash investments for your portfolio, you’ll need to spend some time researching your options. And unless you plan on putting your investments on autopilot, you’ll have to make time to rebalance your portfolio and ensure… read more…
- What Is Simple Interest?
Investors who put their money into savings vehicles and other accounts hope to earn decent returns. Over time, interest adds up, and how quickly it grows depends on the kind of interest you’re working with. You might make a simple… read more…
- Simple Interest vs. Compound Interest
Anyone who takes out a loan has to think about the cost of doing so. If you need to borrow money to finance a home purchase or a renovation, you’ll want your interest rate to be as low as possible.… read more…
- Index Funds vs. ETFs
Index funds and exchange-traded funds (ETFs) both earn returns through a series of investments. But how they trade and what they cost varies. However, there are some ETFs that are also index funds (and vice versa). That means the subtle differences between each of these investment types make them specifically better options for certain investors over… read more…
- 5 Factors That Affect Your Investments
Investments can be great wealth building tools that you can use to multiply your savings. But unfortunately, all of the research and counseling in the world can’t necessarily guarantee a high rate of return. Whether you’re an expert or a novice, it’s important to keep in mind that there are certain uncontrollable factors that will… read more…
- The Newbie Investor’s Guide to Fees
New investors often focus on picking the right mix of funds to add to their portfolios based on their risk tolerance. While choosing the right investments is a big part of building wealth, it’s not the only factor that matters. There are certain costs that go along with investing that you can’t afford to overlook. Before diving… read more…
- ETFs vs. Mutual Funds: When You’re Investing on a Budget
Exchange-traded funds (ETFs) and mutual funds are two great ways to dive into the world of investing. What are they? You can think of a mutual fund as a basket of stocks and bonds. Similarly, an ETF invests in a… read more…
- 5 Basic Investing Principles
Investing can be a great way to build wealth as a young adult. But if you don’t know anything about stock or bonds, you might be tempted to avoid the process of investing altogether. Avoiding investing means you could miss out on the… read more…