- What is Private Equity and What Do Private Equity Firms Do?
If you have a diverse investment portfolio you’ve probably bought publicly traded stocks on the open market. But some investors operate in an alternate, well-funded investment universe. In the world of private equity, well-funded investment firms make big investments in… read more…
- Why the Consumer Price Index (CPI) is Important
The consumer price index (CPI) is an economic term you’ve probably heard before but may not know much about. It’s importance has risen since President Biden’s trillion-dollar spending initiatives aimed at countering the effects of the pandemic. And the April 2022 CPI report of a 8.3% jump from April 2021 has only furthered interest in… read more…
- What Is the Average American Net Worth?
Net worth is often used as a measurement of individual, or household, wealth. This value can give you a holistic perspective of your financial situation. In fact, the average American net worth is $748,800, according to the latest triennial Survey… read more…
- What Is a Prospectus, and How Do You Read One?
In investing, a prospectus is a legal document that describes an investment security to potential investors. Required by the U.S. Securities and Exchange Commission (SEC), a prospectus contains facts about the company or fund issuing the security. This can include… read more…
- What Is the Role of a Subadvisor?
A subadvisor is an investment management firm that typically partners with a mutual fund investment advisor to help with the day-to-day management of the fund. They often provide specialized expertise in a specific type of investment strategy. This could include building… read more…
- What Does It Mean to Buy Investments on Margin?
Buying on margin is a technique often reserved for intermediate and advanced investors through which someone borrows money from their broker in order to invest it. In the best-case scenario, buying stock on margin can increase your earnings significantly. On the… read more…
- What Is the Face Value of a Bond and How It Differs From Market Value
Bonds are a type of debt security used by government entities and corporations to raise money. Every bond come with a face value, which is sometimes called a par value. This number indicates what the bond will be worth at maturity,… read more…
- How to Find the Market Capitalization of a Company
Market capitalization, often abbreviated as market cap, is a measure of a public company’s overall value of its shares of stock as set by the market. Market cap can be used to compare companies, or to measure success over time.… read more…
- How Business Owners Can Protect Their Assets
When you own a business, it’s important to ensure your assets are protected. Being sued or carrying large amounts of debt could pose a threat to both your business and to your own personal finances. Fortunately, there are steps you… read more…
- What Are Model Portfolios and Are They Right for You?
Whether you’re a new or veteran investor, you probably want a lot of different things from an investment. But, deciding which investments will help you achieve your financial goals may be a bit of a challenge. So, rather than putting… read more…
- Board of Directors: What Investors Need to Know
A company’s board of directors represents shareholders and supervises a company. As a result, directors are of particular importance to investors in individual stocks. It’s why all publicly traded companies have boards of directors. Meanwhile, many non-profits and non-public companies… read more…
- What Is a Forward Contract and How Do They Work? Definition and Example
A forward contract is an agreement between two parties to buy or sell an asset at a specified price at a fixed date in the future. This investing strategy is a bit more complex and may not be used by the everyday… read more…
- How Does a Credit Default Swap Work?
Credit default swaps are a portfolio management tool that gained notoriety during the peak of the 2008 financial crisis. These derivative investments are bit more complex than stocks, mutual funds or bonds, but they can be an effective way to… read more…
- What Earnings Per Share (EPS) Tells Investors
Earnings per share, or EPS, is a financial measurement that tells investors if a company is profitable. You can calculate EPS by determining a company’s net income and dividing it by the number of its outstanding stock shares. Savvy investors… read more…
- How After-Market Trading Works (and How to Do It)
Many investors assume that once the closing bell rings, stock trading is over for the day. However, the market doesn’t necessarily shut down at 4:00 PM Eastern Time. After-market trading, also known as after-hours trading, continues into the late afternoon and evening, often extending until 8:00 PM. During this period, investors can buy and sell… read more…
- How Does a Rights Offering Work?
You may be well-versed in the differences between stocks and bonds or how exchange-traded funds (ETFs) work, but a rights offering is one investing term you may not be as familiar with. A rights offering allows a company’s shareholders the… read more…
- Pooled Investment Vehicles: Definition and Types
A pooled investment vehicle is one way to put your money into the stock market alongside other investors. There are several ways to pool money to invest if you’re looking for an alternative to trading individual stocks. Some are better… read more…
- Small Cap Stocks: Definition and Pros & Cons
Small cap stocks are one type of stock investment you can hold in your portfolio that represent the stocks of smaller companies. These stocks differ from large cap and mid cap stocks in several key ways. There are several advantages… read more…
- An Investor’s Guide to Risk Tolerance
Risk tolerance refers to an investor’s ability and willingness to endure market volatility and potential losses in pursuit of financial goals. It is influenced by factors such as age, income, financial obligations and overall investment objectives. Understanding your risk tolerance helps align your investment strategy with your comfort level and long-term financial plan, allowing you… read more…
- What Assets Are Considered Investable Assets?
Your net worth is a good way to determine how much value you hold, but investable assets might be a better measure. And if you’re considering working with a financial advisor, it’s smart to know what your investable assets are and how much you actually have. Knowing this can offer a much more complete picture… read more…
- What Is a Collective Investment Trust?
Most investors are familiar with mutual funds and retirement savings vehicles like 401(k)s. But a collective investment trust (CIT) combines some of the characteristics of both. While CITs are similar to mutual funds, they’re generally only available to participants in… read more…
- How a Separately Managed Account (SMA) Works
A separately managed account (SMA) is an individually tailored investment portfolio overseen by a professional asset manager on behalf of a individual investor. Unlike mutual funds, which pool assets, SMAs grant investors direct ownership of the underlying securities, enabling customized strategies and tax-efficient management. Typically available through wealth management firms, these accounts often have high… read more…
- Large-Cap Stocks: Definition and Pros & Cons
Large-cap, or large capitalization, stocks are a type of stock that belongs to very large, established companies like Apple and Microsoft. As a result of this, these stocks are often considered the safest of all equity investments. But like all other types of securities, large-cap stocks have both advantages and drawbacks. Investing in large-cap stocks is… read more…
- What Are the Different Types of Government Securities?
Government securities refer to a variety of investment vehicles issued by a governing body, national, state or local. You may be familiar with treasury bills, bonds or notes, but you may not be aware that other countries issue debt to… read more…
- What It Means for an Advisor to Be CEFEX-Certified
Choosing a financial advisor isn’t easy. You’ll need to determine if you need an in-person financial advisor or a robo-advisor. Then you’ll choose a firm. It may be one close to home or with a certain area of expertise. Once you pick, check their credentials. If an advisory firm says it’s CEFEX-certified, it’s certified by… read more…