investing
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Gold and Interest Rates: Understanding the Relationship
The fact that gold prices rose astronomically from 2008 to 2011 near the same time that the Fed lowered interest rates is no coincidence. Gold prices rise and fall for a number of reasons, many of whi
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2-for-1 Stock Split Explained: What It Is & Why Companies Do It
When stocks go up in price, it can be both good and bad for the company involved. A price increase indicates a vote of confidence in the company and its prospects. But if the price gets too high, it c
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Understanding Interest: Simple vs. Compound on U.S. Government Bonds
The U.S. government issues several types of bonds, and interest is paid differently for several of the types. For investors, the ability to compound interest is positive for the growth of a portfolio.
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Decoding Financial Statements: What Investors Really Look For
One of the keys to responsible investing is understanding how the companies you put money into operate. Businesses compile and release financial statements on a regular basis as a means of tracking th
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Calculate MIRR Using WACC: A Step-by-Step Guide
The modified internal rate of return (MIRR) calculates the return earned on an investment while taking into consideration that you may not be able to re-invest the money you earn at the same rate the
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Understanding Trade and Settlement Dates in Stock Trading
The settlement date for a stock trade is generally three days following execution. Trade date and settlement date are terms used in investing that are most often applied to stock trading. The
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Pro Rata Calculation: A Simple Guide to Accurate Allocation
Daily, or even more often, you may have to divide costs or income between multiple people or categories. However, simply dividing the amount into equal parts doesn't always get the job done. Inste
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Understanding Consumer Response to Economic Incentives
High prices make consumers turn to less expensive products. Incentives in economics are factors that can alter the buying behavior of consumers. They can either be decisions by governments or
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Roth IRA Contributions: Can You Contribute Retroactively?
A Roth IRA is a popular way to save for retirement. Its many tax advantages make it a desirable vehicle for saving and investing money. However, Roth IRAs are governed by numerous IRS rules and regula
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Understanding 408(b) Annuities: Retirement Savings Explained
Annuities are insurance policies. These contracts may do one of two things. They may provide you with a guaranteed income for life or for a set number of years. Otherwise, they may function as a long-
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Understanding Stock Splits: A Simple 5 to 4 Calculation
A stock split occurs when a publicly traded company wants to decrease the price of stock shares. The total value of all outstanding shares or market capitalization of the company remains the same, and
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Private Placement vs. Private Equity: Understanding the Differences
To fund its operating activities, a company can raise cash on financial markets, such as the New York Stock Exchange or Hong Kong Stock Exchange. The firm also can work with investment bankers to priv
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Bloomberg Terminal: Finding CUSIP Numbers - A Step-by-Step Guide
There are many different types of securities, including bonds and equities. Some securities are issued by companies, other are issued by the government or municipalities. One way investors can look up
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Understanding Your IRA: Traditional vs. Roth - Which is Right for You?
Knowing what type of individual retirement account (IRA) you have is important, both from a tax planning perspective and from a retirement saving perspective. Both traditional and Roth IRAs have their
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Calculate Expected Earnings Per Share (EPS): A Simple Guide
Calculating EPS is simple. Many investors like to look at different numbers and ratios when evaluating a company. There are many acronyms bandied about by so-called financial experts on telev
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Continuously Compounded Return: Calculation & Investment Analysis
There are two schools of thought in investment analysis: fundamental and technical. Fundamental analysis helps analysts to determine what to buy and technical analysis helps to determine when to buy i
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Understanding Implied vs. Realized Volatility in Options Trading
Volatility -- both implied and realized -- is a valuable tool for the options trader. Comparing an option's historic, or realized, volatility to its anticipated future, or implied, volatility can
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Issuing Stock: Benefits and Drawbacks for Companies and Investors
Corporations issue stock shares to raise money. Each share represents a tiny ownership piece of the corporation, and people who buy the shares receive the right to benefit from their ownership stake.
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Understanding the Balance Sheet Equation: Assets = Liabilities + Equity
A close-up of an assets and liabilities balance sheet. A balance sheet is a financial statement that details a company's financial positions as of a given date, typically the end of a fis
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Understanding Gold Karats: 8K, 14K, 18K, & 24K - A Comprehensive Guide
Pure gold shows a deeper yellow tint. The purity and value of gold is determined by the karatage, which can be altered by the types of common metals that are added to the gold to lower its pu
investing
- Understanding Assets Under Management (AUM): A Comprehensive Guide
- Sell to Cover: Understanding Employee Stock Option Strategies
- Reporting a Ponzi Scheme: Protect Yourself & Others
- Maturity Ladder: A Comprehensive Guide for Investors
- Semivariance Calculation: A Guide to Portfolio Risk
- Stock Grants vs. Stock Options: Understanding the Difference
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Retire at 62? A 5-Step Financial PlanWhen you reach your late 40s or early 50s, it’s natural to start wondering whether you could retire in the next decade.If you have $225,000 saved, the answer is: Probably. But you have to plan...
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Best & Cheapest Online Money Transfer Services - 2024With countless payment apps and providers available on your laptop, tablet, and smartphone, it can be hard to pick one to use. This technology makes it easier than ever to pay back your friend for cov...
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Financial Compatibility: 3 Essential Money Questions to Ask Before MarriageThese questions helped ensure we...
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Litecoin (LTC) Buying Guide: What You Need to KnowMany or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opi...