### Calculating Compound Interest

Compound interest means that the interest will include interest calculated on interest. For example, if an amount of \$5,000 is invested for two years and the interest rate is 10%, compounded yearly: • At the end of the first year the interest would be (\$5,000 * 0.10) or \$500 • In the second year the … Continue reading Calculating Compound Interest

### Simple Interest – Definition and Calculation

When we borrow money we are expected to pay for using it – this is called interest. There are three components to calculate simple interest: principal (the amount of money borrowed), interest rate and time. Formula for calculating simple interest: I = Prt Where, I = interest P = principal r = interest rate (per … Continue reading Simple Interest – Definition and Calculation

### Microeconomics: A General Overview

Besides Macroeconomics, the other basic way to view economics is the “Microeconomic” view. This view concerns itself with the particulars of a specific segment of the population or a specific industry within the larger population of good and service providers. More importantly, from a financial standpoint microeconomics concerns itself with the distribution of products, income, goods and … Continue reading Microeconomics: A General Overview

### Macroeconomics: A General Overview

Finance is based on economics. Therefore, to properly understand financial markets and their behavior one must first understand economics. Economics at its core is concerned with the production, distribution, trade and consumption of goods and services. To put this in human terms we can say that economics is the science that arises out of the interplay between limited … Continue reading Macroeconomics: A General Overview

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### How to do Free Research on Stocks

When investing in stocks, research and due diligence is an absolute must. Even if you are engaged in “technical analysis,” and make investment decisions primarily based on the directions and trends of the stock charts, you still must know something of the company behind the stock. There are, of course, a great many subscription-based newsletters, … Continue reading How to do Free Research on Stocks

### Investing in Micro Cap Stocks

Micro caps stocks, or stocks for companies with market capitalization of under \$300 million, often represent excellent investment opportunities with above-average returns. Investing with Mutual Funds Often, these stocks are underrepresented in institutional portfolios. There are a handful of micro cap funds however, which invest exclusively in these types of stocks, and these funds often … Continue reading Investing in Micro Cap Stocks