- 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. Knowing this can offer a much more complete picture of what kind of value you hold between all areas of your financial life. How you manage investable assets will determine your financial future. … 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…
- How the Future Value of an Investment Is Calculated
There is always risk associated with investing. Sure, you can diversify your portfolio or hedge against risk by purchasing low-risk securities such as bonds, money market funds, or certificates of deposit. You can also predict your portfolio’s growth based on… read more…
- What Is a Closed-End Fund and How Do You Invest?
Closed-end funds may not be something you’ve heard mentioned often. Your investment portfolio is more likely to include open-end funds, mutual funds or exchange-traded funds (ETFs) instead. However, closed-end funds can offer some advantages for investors. This guide explains what… read more…
- What Is Over-the-Counter (OTC) Stock Trading?
Securities that trade “over-the-counter,” or OTC, are not traded on a formal exchange. While the biggest publicly traded companies trade on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ, over-the-counter securities trade outside of them, through a… read more…
- Open-End Funds vs. Closed-End Funds
Mutual funds can be a good way to invest if you want to diversify your portfolio without buying individual stocks or bonds. Aside from knowing which share class you’re investing in, you also need to know whether you’re buying an open-end… read more…
- What the Current Yield of a Bond Tells You
Bonds can help the federal government or other agencies raise money for specific projects. They’re like loans that investors make to government agencies or corporations. A bond’s face value will give an investor some idea of what it’s worth. However,… read more…
- Asset-Backed Securities: Definition and How to Invest
Asset-backed securities, or ABS, are securities backed by a pool of fundamental assets. Typically, the pool of assets is a small group of loans or debt obligations that cannot individually be sold to individual investors. Packaging these assets as a single financial instrument allows them to be sold to investors. Since the underlying assets are… read more…
- What Is Technical Analysis and How Does It Work?
Technical analysis is one way to evaluate a stock to decide if it’s a good investment for you. If you’re a DIY stock trader, then understanding how this approach works can be helpful in shaping your portfolio. Here’s an overview… read more…
- How Fundamental Analysis Is Used to Analyze Stocks
Stocks are a great option for diversifying your investment portfolio. However, choosing the right ones isn’t always a simple process. Different investment tools and strategies, such as fundamental analysis, can help you decide which securities are worth your time and money.… read more…