- Inflationary Risk Definition
When building an investment portfolio there are certain types of risk you have to factor in, including inflation risk. You may know that inflation means a trend of rising prices over time but you may not understand how this can… read more…
- What Is Term Life Insurance?
A term life insurance policy provides a death benefit or lump sum payment to a beneficiary if the policyholder dies during a specific “term” or period of time. Often called pure life insurance, term life insurance is known for being… read more…
- Credit 101: Definition, Scoring, Reports and More
Credit is one of the most important aspects of a person’s financial life. Your credit score affects your ability to get loans, credit cards, apartments and more. There are several components to credit that have an impact on you and your financial situation. You can check these factors by looking at your credit score and… read more…
- Bankruptcy Basics: How to File, Types, and More
Bankruptcy is a way for an individual or business to have their debts legally discharged in the event that they cannot pay them. For example, if your home is being foreclosed upon or your debts have built up to the… read more…
- What Is a Non-Recourse Loan?
A non-recourse loan is a type of debt that’s secured by collateral, such as an individual’s car, house or another typically illiquid asset. By securing a non-recourse loan, the lender won’t have the ability to pursue the borrower’s other assets… read more…
- What Is the New York Stock Exchange (NYSE)?
The New York Stock Exchange, or NYSE for short, is the world’s largest and most famous stock exchange. The total market capitalization of all of its listed securities totals over $25 trillion. The NYSE is located in downtown New York at… read more…
- What Is IRS Form 1099-MISC?
If you’re a contractor, freelancer or another type of self-employed individual, you’ll likely need to file IRS Form 1099-MISC. This form is used to report non-employee compensation, and it is part of the 1099 family of IRS tax forms. In… read more…
- What Is an Excellent Credit Score?
A credit score of 800 or above typically falls into the “excellent” category. There are many benefits associated with this tier of credit score. For example, an excellent credit score means you’re more likely to gain approval for new lines of… read more…
- Liquidity Risk Definition
Investing is naturally a risky proposition, and there are specific types of risk to be aware of when deciding where to put your money. Liquidity risk is one of them. Broadly speaking, it refers to how easily an asset can… read more…
- Debt-to-Capital Ratio Definition
When deciding which companies to invest in, you can use several ratios to gauge their financial health. The debt-to-capital ratio is a way to measure a company’s ability to withstand downturns based on how its debt obligations and available capital… read more…
- Explaining the Different Types of Insurance Fraud
Insurance fraud can occur during any stage of the insurance transaction by any party involved. This means that applicants, policyholders, third-party claimants, professionals who provide services to claimants, insurance brokers or agents – even companies – may attempt to commit… read more…
- What Is Owner’s Equity?
Owner’s equity is the value of a business that the owner can claim, and consists of total assets minus total liabilities. Both the amount and how much it has changed from one accounting period to another offer insights into a business’s financial condition. Sole proprietors and partnerships use this term. We’ll review what comprises this… read more…
- What Is a Vesting Period?
A vesting period is the time an employee must work for an employer in order to own outright employee stock options, shares of company stock or employer contributions to a tax-advantaged retirement plan. Vesting periods come in a variety of… read more…
- Term Life Insurance vs. Whole Life Insurance
Term life insurance offers coverage for a specific amount of time, while whole life insurance provides lifelong coverage and the potential for a cash value accumulation. When you pass away, your family can use the proceeds from both types of… read more…
- How to Get a Free Credit Report
When it comes to your personal finances, knowing about your credit profile is extremely important. It can determine whether you’re accepted for a home loan, an auto loan, a credit card, rentals, insurance policies or even jobs. Luckily, it’s now… read more…
- What Is a Public Benefit Corporation?
Public benefit corporations, also known as benefit corporations, are for-profit businesses whose charters commit them to social or environmental missions, not just maximizing shareholder value. These corporations take into account how other stakeholders such as communities and the environment will be affected by their actions. Organizing as a public benefit corporation is seen as a… read more…
- What Is EDGAR?
EDGAR, which is short for Electronic Data Gathering, Analysis and Retrieval system, is a massive U.S. government database on the finances of publicly traded corporations that is free to the public. Overseen by the Securities and Exchange Commission (SEC), it… read more…
- How Do Social Security Survivor Benefits Work?
Social Security benefits can serve as an additional income stream for retirement, but they can also be paid out under other circumstances. For instance, Social Security survivor benefits can be paid to the widows, widowers and dependents of eligible workers… read more…
- What Is a Social Security Number?
If you’ve ever applied for a credit card or completed a job application, you’ve probably been asked for your Social Security number. This unique nine-digit number issued by the Social Security Administration is one of your most important pieces of… read more…
- What Is Seed Capital?
Seed capital refers to funds raised to start a business. Also referred to as seed money, seed funding or startup capital, it enables entrepreneurs to transform a viable business idea into a new product or service. While there are other types of… read more…
- Self Review: Credit-Builder Loans and Cards
Self, formerly known as Self Lender, is a financial services company that offers two different products aimed at helping customers with bad or little credit. Its premier offering, called the Credit Builder Account, allows you to receive a credit-building loan in… read more…
- How to Trade the Cup-and-Handle Pattern
A cup-and-handle pattern is the name of a chart pattern used in technical analysis that describes a bullish continuation trend in the price of a security, typically a stock. Traders sometimes use this pattern as a signal about when to buy the… read more…
- What Is a Stock Warrant, and How Do They Work?
A stock warrant is a type of derivative that gives the holder the right to buy a share of a company for a specific price within a set window of time or on a specific date. Companies will often issue… read more…
- Guide to the Put-Call Parity
One of the most important principles in options trading is known as put-call parity. The term describes a functional equivalence between a put option and a call option for the same asset, over the same time frame and on the same… read more…
- What Are Basis Points (BPS)?
When analysts talk about changes to market prices, interest rates or other financial metrics, they often do so in terms of “basis points.” A basis point is equal to a change of 0.01%, useful shorthand in an industry where fortunes… read more…