- How Pump and Dump Investing Schemes Work
You don’t have to watch movies like “The Wolf of Wall Street” or “Boiler Room” to know what pump and dump scheme is about. Brokers pitch penny stocks to customers in high volume despite its questionable returns. Once the buyers dry… read more…
- What Is Regulation T (Reg T) and Why Does It Exist?
Buying on margin lets investors increase potential return with borrowed money, but it’s a big risk. The Federal Reserve Board’s Regulation T, or Reg T, limits that risk. This collection of rules limits how customers can trade using cash accounts.… read more…
- Market Correction: Definition, Duration and Everything Else You Need to Know
When people talk about a market correction, it sounds like a euphemism for falling stock prices. But it’s actually a technical term for a 10% or bigger drop in the price of an index (or individual security) from the last… read more…
- An Introduction to Initial Coin Offering (ICO)
An initial coin offering, or ICO, is a cryptocurrency-based method of funding for companies. While ICOs are often compared to IPOs (initial public offerings), the Securities and Exchange Commission (SEC) says ICOs pose significantly greater risk of fraud and manipulation. Compared… read more…
- Treasury Inflation-Protected Securities (TIPS)
One downside of many low-risk investment products is that the rate of the return often does not keep pace with inflation. That downside is eliminated with Treasury Inflation-Protected Securities (TIPS). With TIPS, your investment principal increases alongside the Consumer Price… read more…
- Best Day Trading Apps for 2025
Day trading apps make buying and selling stocks, mutual funds or other securities easier than ever. These apps offer convenience and portability since you can manage your investment portfolio from your mobile device or laptop on the go. But which… read more…
- A Guide to SEC Rule 15c3-3
Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage firms to maintain secure accounts. Also known as the Customer Protection Rule, SEC Rule 15c3-3 is part of the Code of Federal Regulations. It ensures that brokerage clients can withdraw assets… read more…
- What Is a Call Provision and What Does It Mean?
A call provision allows an issuer to pay a bond early. Most bonds have a fixed maturation and value. If you buy a 10-year bond, you get back your capital plus a fixed interest rate in a decade. Call provisions are… read more…
- How a Viatical Settlement Works
A viatical settlement allows the holder of a life insurance policy to sell it for more than its purchase price, but less than its face value. If you are in the market to sell one, then you’ve likely fallen on… read more…
- What Assets Are Considered Liquid Assets?
Liquid assets are things that can be quickly converted into cash without losing value. These come in many different forms, such as cash, stocks, other marketable securities, money market funds and more. Liquid assets are different from their illiquid or fixed… read more…
- What Are Exchange-Traded Notes (ETNs)?
When is debt not ordinary debt? When it’s packaged as exchange-traded notes. An exchange-traded note (ETN) is pegged to a market index but functions like a bond. At maturity, ETNs pay out the return of the index it tracks. However,… read more…
- What Are Investment Securities?
When you’re starting to invest, you’ll begin to take cash and buy different types of investments, or securities. There are many versions of securities you can invest in, and the ones you choose depend on what type of investor you… read more…
- How to Buy Foxconn Stock in the U.S.
As the largest multinational electronic manufacturers in the world, Foxconn (also known as Hon Hai Industry Co.) offers a variety of consumer electronics, component and computer electronic products. Led by founder, chairman and CEO Terry Gou, the Taiwanese manufacturer also operates in both domestic and overseas markets. With its global footprint, many investors are looking… read more…
- How to Invest in Marijuana Stocks
Marijuana stocks are becoming more popular as more states legalize the medical and recreational use of the drug. In fact, you can now even invest in marijuana stocks through a normal brokerage account. However, just like any other type of stock, marijuana stocks can be risky, even if market growth is encouraging. That’s because stocks… read more…
- A Guide to Investing in Floating Rate Notes
Bonds are often the investment of choice for people seeking stability. They don’t yield much, unless you have sought out the junk market, but they come with highly stable returns. Bonds can be seen as the dad jokes of investing:… read more…
- What Is Monetary Policy, and How Does It Work?
In the U.S., the Federal Reserve determines monetary policy, while Congress controls fiscal policy. Generally, monetary policy seeks either to stimulate the economy or cool it down through managing money supply and demand. Steering monetary policy is the Fed’s main responsibility.… read more…
- A Beginner’s Guide to Investing in Foreign Currency
Investing in foreign currency can be a great way to diversify your portfolio. Foreign currency trading, or forex for short, is a little more complex than trading stocks or mutual funds, or shoring up your investment strategy with bonds. Learning… read more…
- 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…