Derivatives are the esoteric equivalent of the mystery religions of the financial world. Though many invest in them and talk about them few actually understand them and those that do are often hard to understand. Derivatives can be confusing but they are not near as complicated as one might think. For starters, let’s look at the a … Continue reading Derivatives: An Introduction to Options
Investing internationally often offers the potential for tremendous returns as compared to US investments while at the same time exposing the unprepared investor to potentially large losses. Of course, as with anything the devil is in the details. So whether there is profit potential or loss potential depends on the country involved as well as the actual … Continue reading Investing Internationally
A discussion of debentures is not complete without discussing corporate bonds. Corporate bonds provide the more conservative investor a worthwhile compromise between the higher risk equity securities and the various conservative government debentures. There are two aspects to corporate bonds that are important for investors. These two aspects are risk and term of maturity. Risk and Return … Continue reading A General Overview Corporate Bonds
The stock market is the primary place of investment for most people. It is viewed by some as the forum where big money can be earned and to not invest in the stock market would be ridiculous. Stock markets are places where people can buy shares in publicly listed companies. This represents a small portion … Continue reading What is Private Equity Investing?
As mentioned earlier, investments can be a very complicated subject. Earlier we discussed the two basic types of investments – equity and debt. We will now go a bit further into the discussion of one of these types – bonds, or debentures. Municipal Bonds We have mentioned the fact that a municipal bond is a bond specific … Continue reading Overview of Government and Municipal Bonds
A popular way to invest in the market today is through what’s called ETF’s, or Exchange Traded funds. They work much the same as regular stocks; they are portfolios of stocks, bonds, or other investments that trade on the stock exchange. All ETF’s are an index fund, which means that they track the performance of … Continue reading Investing in ETFs: Exchange Traded Funds
The Advantages: Diversification: A single mutual fund can hold securities from hundreds or even thousands of issuers. This diversification considerably reduces the risk of a serious monetary loss due to problems in a particular company or industry. Affordability: You can begin buying units or shares with a relatively small amount of money (e.g., $500 for … Continue reading Advantages and Disadvantages of Investing in Mutual Funds
If you’d like to enter the stock market but are not prepared to purchase a large quantity of stocks or don’t have a large amount of money to invest, then you might find buying stocks through a dividend re-investment plan (DRIP) is the best avenue for you. Here’s how it works You buy one share … Continue reading Buying Stocks: Doing your Own Investing with DRIPS
The toughest part of investing in stocks for most people is stock selection. There are thousands of listed companies in the marketplace that you may invest in by doing your own work and research. An easier way to invest in a diversified portfolio of stocks is to invest in index funds. Here is some information on … Continue reading The Benefits of Index Funds
A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for the loan, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of … Continue reading What are Bonds? Investing in Bonds
Stocks are shares in a company. When you invest in a company’s stock or buy its shares, you own part of a company. In general, if the company makes money over a long period of time, your stock may increase in value. Though, stocks are risky, and you may potentially loose all your money. Good potential … Continue reading What are Stocks?
The idea behind a mutual fund is fairly simple: Many investors pool their money in a fund managed by a professional money manager on behalf of these investors. The manager uses this pool of money to direct investments according to the fund’s objectives, such as long-term growth, high or stable current income, or stability of … Continue reading What is a Mutual Fund?
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