1. Why do some preferred stocks have a higher yield than common ...
    Investing

    Why do some preferred stocks have a higher yield than common ...

    Before we answer this question, let's just take a quick review of what a stock's yield is actually measuring.The yield is calculated by taking the stock's annual expected dividend and then dividing that ...
  2. What is the correlation between American stock prices and ...
    Forex

    What is the correlation between American stock prices and ...

    The correlation between any two variables (or sets of variables) summarizes a relationship, whether or not there is any real-world connection between the two variables. The correlation coefficient will ...
  3. How do you make money trading money?
    Forex

    How do you make money trading money?

    Investors can trade almost any currency in the world. Investors, as individuals, countries, and corporations, may trade in the forex if they have enough financial capital to get started and are astute ...
  4. What is the difference between trading currency futures ...
    Forex

    What is the difference between trading currency futures ...

    The forex market is a very large market with many different features, advantages and pitfalls. Forex investors may engage in currency futures as well as trade in the spot forex market. The difference between ...
  5. Cleaning Up Dirty Surplus Items On The Income Statement
    Markets

    Cleaning Up Dirty Surplus Items On The Income Statement

    Dirty surplus items can skew net income. Knowing how to account for them will give you a cleaner picture.
  6. Why is currency always quoted in pairs?
    Forex

    Why is currency always quoted in pairs?

    When reading currency quotes, you have probably noticed that there is only a single quote for a pair of currencies. Currency pairs are quoted as such because a currency is only valuable in relation to ...
  7. Where do most fund managers get their market information?
    Investing

    Where do most fund managers get their market information?

    Many fund managers, whether they manage a mutual fund, trust fund, pension or hedge fund, have access to resources that the "average Joe" investor does not, but the type and quality of information generally ...
  8. What is a pip and what does it represent?
    Forex

    What is a pip and what does it represent?

    A pip is a very small measure of change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency. A pip is a standardized unit and is the ...
  9. Why would my stock's value decline despite good news being ...
    Investing

    Why would my stock's value decline despite good news being ...

    More often than not, when a firm releases an earnings report the market will react to this news by adjusting the firm's stock price. This stock price is based on the expectations investors have for the ...
  10. What is the difference between bad credit and no credit?
    Credit & Loans

    What is the difference between bad credit and no credit?

    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy proceedings. If your credit is considered poor, then it could take a long time ...
  11. What does the diluted share price reveal about a company's ...
    Options & Futures

    What does the diluted share price reveal about a company's ...

    When a corporation releases its financial information, there are a few different variations used when reporting total earnings. These variations are: total dollar amounts, earnings as a percent of total ...
  12. Is maximizing stock price the same thing as maximizing profit?
    Investing

    Is maximizing stock price the same thing as maximizing profit?

    Simply put: yes. A company's stock price will factor in many different variables including the type of industry the firm operates in, but profits (or earnings) are a very strong proxy of a company's stock ...
  13. How can I improve my credit score?
    Investing

    How can I improve my credit score?

    If you are looking to take out a loan or apply for a credit card, then it will be very important for you to have a good credit score, which is often referred to as your FICO score. After all, the better ...
  14. Why are options very active when they are at the money? ...
    Options & Futures

    Why are options very active when they are at the money? ...

    Stock options, whether they are put or call options, can become very active when they are at the money. In the money options refer to when the strike price of a call option is below the market price of ...
  15. What do the numbers that follow the bid and ask numbers ...
    Trading Strategies

    What do the numbers that follow the bid and ask numbers ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually are shown in brackets, and they represent the number of shares, in lots of ...
  16. Can a creditor seize my retirement savings?
    Retirement

    Can a creditor seize my retirement savings?

    Whether a creditor can seize your retirement savings will depend on the type of account in which you are holding your retirement savings and the creditor that is seeking repayment.If your creditor is a ...
  17. Where do companies keep their cash?
    Investing

    Where do companies keep their cash?

    If you have ever looked over a company's balance sheet, you have no doubt noticed the first account under the current asset section is cash and cash equivalents. The cash account contains, as the name ...
  18. Which is better, a fixed or variable rate loan?
    Investing

    Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your ...
  19. Does a stock dividend dilute the price per share as would ...
    Investing

    Does a stock dividend dilute the price per share as would ...

    Every corporation has the same goal in mind: to maximize shareholder wealth. This goal is fulfilled in two different ways, by re-investing cash into the business to stimulate its growth, or by paying dividends ...
  20. When should a company recognize revenues on its books?
    Investing

    When should a company recognize revenues on its books?

    When a company makes revenues from its operations, it must be recorded in the general ledger and then reported on the income statement every reporting period. According to generally accepted accounting ...
  21. What is the highest achievable FICO score?
    Credit & Loans

    What is the highest achievable FICO score?

    Your FICO score is used by creditors to determine the overall credit risk of any individual consumer. This score is calculated by using a proprietary tool developed by the Fair Issac Corporation (NYSE:FIC). ...
  22. How is rollover interest calculated?
    Forex

    How is rollover interest calculated?

    In the forex market, all trades must be settled in two business days. Traders who want to extend their positions without having to settle them must close their positions before 5pm Eastern Standard Time ...
  23. What is a debt/equity swap?
    Investing

    What is a debt/equity swap?

    Occasionally, a company will need to undergo some financial restructuring to better position itself for long term success. One possible way to achieve this goal is to issue a debt/equity or an equity/debt ...
  24. How does the number of credit card accounts I have affect ...
    Credit & Loans

    How does the number of credit card accounts I have affect ...

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential credit worthiness. Generally speaking, the higher your credit score, the less of ...
  25. I want to try short selling, but how can I sell something ...
    Active Trading Fundamentals

    I want to try short selling, but how can I sell something ...

    Money can be made in the equities markets without actually owning any shares, but this tactic is not for new investors. The concept of short selling involves borrowing stock you do not own, selling the ...
  26. Why do companies postpone earnings announcements?
    Investing

    Why do companies postpone earnings announcements?

    During the course of a fiscal year, a company will report earnings on a total of four separate occasions: three quarterly statements filed as 10-Qs, and one annual report with Quarter 4 data within, filed ...
  27. Do all international markets trade between 9:30am and 4pm ...
    Investing

    Do all international markets trade between 9:30am and 4pm ...

    The New York Stock Exchange and Nasdaq both trade between 9:30am and 4pm Eastern Time. All major stock exchanges trade at roughly the same local times in each of their respective countries.The other major ...
  28. What is property, plant and equipment, and what does it ...
    Investing

    What is property, plant and equipment, and what does it ...

    Property, plant and equipment (PP&E) is a term that describes an account on the balance sheet. The PP&E account is a summation of all a company's purchases of property, manufacturing plants and ...
  29. Can a church issue a bond?
    Investing

    Can a church issue a bond?

    The North American Securities Administrators Association (NASAA) has acknowledged that "church bonds" are allowed to be issued under certain guidelines. These bonds can be issued only by religious affiliates ...
  30. What happens if a company doesn't think it will collect ...
    Investing

    What happens if a company doesn't think it will collect ...

    The accounts receivable account, or receivables for short, is created when a company extends credit to a customer based on a sale. However, there are times when a company will not collect on a particular ...
  31. How do you get a hard copy of a stock certificate?
    Investing

    How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was the only way to authenticate stock ownership. This is not the case anymore. Although ...
  32. Who bears the investment risk in 401(k) plans?
    Retirement

    Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad sense, there are two benefit formulas that will calculate the pension benefits ...
  33. Why are corporations so concerned about their stock price?
    Options & Futures

    Why are corporations so concerned about their stock price?

    When the share price of a company is high or increasing, generally corporations, or more specifically their management teams, are happy about it and there is good reason for it.First of all, the price ...
  34. Are high-yield bonds better investments than low-yield bonds?
    Investing

    Are high-yield bonds better investments than low-yield bonds?

    Most bonds typically make periodic payments, known as coupon payments, to the bondholder. A bond's indenture, which will be known when the purchaser buys the bond, will specify the coupon payments to be ...
  35. When looking at my online broker account, I see an account ...
    Investing

    When looking at my online broker account, I see an account ...

    When looking at some online brokerage accounts, there are a few figures that may be confusing, including account value, cash value and purchasing power.The first figure, account value or total equity, ...
  36. Can a bond have a negative yield?
    Investing

    Can a bond have a negative yield?

    The return a bond provides to an investor is measured by its yield, which is quoted as a percentage. Current yield is a commonly quoted yield calculation, used to evaluate the return on a bond for a one-year ...
  37. How does the ISIN numbering system work?
    Options & Futures

    How does the ISIN numbering system work?

    The International Securities Identification Numbering (ISIN) system is an international standard set up by the International Organization for Standardization (ISO). It is used for numbering specific securities, ...
  38. Can a corporation deduct dividend payments to shareholders ...
    Investing

    Can a corporation deduct dividend payments to shareholders ...

    Corporations may not legally deduct the dividend payments before taxes but there is another approach - a corporate structure called an income trust. Income trusts allow a firm to deduct dividends, or trust ...
  39. What happens to the stock of a public company that goes ...
    Investing

    What happens to the stock of a public company that goes ...

    Occasionally, publicly listed companies go bankrupt. The company's shareholders, depending on the type of stock they hold, may be entitled to a portion of the liquidated assets, if there are any left over. ...
  40. What is the best time of the day to trade?
    Trading Strategies

    What is the best time of the day to trade?

    Unlike traditional investing, trading, or day trading, has a very short-term focus. Analysis may be broken down to days, hours and even minutes. Because day trading focuses on such short time frames, the ...
  41. What is the difference between a 2/28 and a 3/27 ARM?
    Investing

    What is the difference between a 2/28 and a 3/27 ARM?

    An adjustable rate mortgage (ARM) is a type of mortgage that has a fixed interest rate for a certain time period at the beginning of the mortgage, which then becomes a floating interest rate according ...
  42. How does the required rate of return affect the price of ...
    Investing

    How does the required rate of return affect the price of ...

    First, a quick review: the required rate of return is defined as the return, expressed as a percentage, that an investor needs to receive on an investment in order to purchase an underlying security. For ...
  43. Given a good bookkeeping system, would financial accounting ...
    Investing

    Given a good bookkeeping system, would financial accounting ...

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. The first record keeping systems, according to some, originated in about 4500 B.C. ...
  44. Are mortgage-backed securities backed by any guarantees?
    Investing

    Are mortgage-backed securities backed by any guarantees?

    Actually, any mortgage-backed security (MBS) guarantee depends on who issued it.To review, an MBS is a security, created through the process of securitization, in which the underlying assets are loans ...
  45. Add Some Holdings To Your Holdings (BRK.A, AINV, LUK)
    Stock Analysis

    Add Some Holdings To Your Holdings (BRK.A, AINV, LUK)

    Some say the markets are ripe for a correction. Add these holding companies to make sure you aren't left behind.