Investing Basics

  1. Are You Investing or Gambling?

    We look at ways in which gambling creeps into trading and what may drive an individual to trade - or gamble - in the first ...
  2. How To Be The Perfect Copycat Investor

    Legendary investor Warren Buffett has attracted copycats over the years, and that could be because copying Buffett’s strategy ...
  3. Getting Started In Stocks

    We'll provide a step-by-step introduction on how to invest - and succeed - in this market.
  4. Don't Ignore the Importance of Human Capital

    Are you ignoring the value of human capital in your financial planning? This oft-overlooked asset should be an important ...
  5. The Expanding Role of Technology in Financial Advice

    Find out how financial advisors can serve investors better with some fresh thinking and a little help from technology.
  6. Shorting an ETF vs. Buying an Inverse ETF (AAPL, INTC)

    Investors who want to bet against specific sectors or indexes can either short an ETF or buy an inverse ETF. Which is better ...
  7. How Much Control Should You Give Your Financial Advisor?

    Discretionary account or non-discretionary? How to tell which is best for you.
  8. Behind Oracle's 172% Rise in 10 Years (ORCL)

    Earnings and acquisitions have driven the historical share price for Oracle Corporation.
  9. The Virtues of Being Financially Organized

    A broad financial plan requires a considerable degree of organization and a true understanding of your risk tolerance.
  10. Infrastructure Stocks to Watch (GE, STLD)

    Major global economies have reached the limit of what monetary policy can achieve and governments are now opting for a new ...
  11. Corporate Insider Transactions Post Q2 Reports (PEP, MSFT)

    Corporate insiders at PepsiCo, Microsoft and Starbucks sold shares last week.
  12. Trade

    A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange ...
  13. Transparency

    The extent to which investors have ready access to any required financial information about a company such as price levels, ...
  14. Subsidiary

    A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company or ...
  15. Speculation

    The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all ...
  16. Sovereign Wealth Fund - SWF

    Pools of money derived from a country's reserves, which are set aside for investment purposes that will benefit the country's ...
  17. Sensex

    An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). ...
  18. Sell In May And Go Away

    A well-known trading adage that warns investors to sell their stock holdings in May to avoid a seasonal decline in equity ...
  19. Secular

    An adjective used to describe a long-term time frame, usually at least 10 years. It is important for investors to identify ...
  20. Section 16

    A section of the Securities Exchange Act of 1934 that is used to describe the various regulatory filing responsibilities ...
  21. Rule 10b-18

    An SEC rule that provides a "safe harbor" for companies and their affiliated purchasers when the company or affiliates repurchase ...
  22. Retrocession

    1. The practice of one reinsurance company essentially insuring another reinsurance company by accepting business that the ...
  23. Proxy

    1. An agent legally authorized to act on behalf of another party. Shareholders not attending a company's annual meeting may ...
  24. Profit Center

    A branch or division of a company that is accounted for on a standalone basis for the purposes of profit calculation. A profit ...
  25. Promissory Estoppel

    The legal principle that a promise is enforceable by law when the promisor (person making the promise) makes a promise to ...
  26. Privatization

    1. The transfer of ownership of property or businesses from a government to a privately owned entity. 2. The transition from ...
  27. Paper Trade

    Using simulated trading to practice buying and selling securities without actual money being involved.
  28. Participating Preferred Stock

    A type of preferred stock that gives the holder the right to receive dividends equal to the normally specified rate that ...
  29. Operating Profit

    The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's ...
  30. Net Proceeds

    The amount received by the seller after all costs and expenses are deducted from the gross proceeds arising from the sale ...
  31. Modigliani-Miller Theorem - M&M

    A financial theory stating that the market value of a firm is determined by its earning power and the risk of its underlying ...
  32. Medium Of Exchange

    An intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. In modern economies the ...
  33. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited ...
  34. Margin Of Safety

    A principle of investing in which an investor only purchases securities when the market price is significantly below its ...
  35. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  36. Long-Term Capital Gain Or Loss

    A gain or loss from a qualifying investment owned for longer than 12 months and then sold. The amount of an asset sale that ...
  37. Group Of Seven - G-7

    A forum of the world's seven most industrialized economies. The G-7 was formed in 1975 and initially comprised six nations ...
  38. Dividend Signaling

    A theory that suggests company announcements of an increase in dividend payouts act as an indicator of the firm possessing ...
  39. Delisting

    The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company ...
  40. Cumulative Dividend

    A sum that publicly traded companies must remit to preferred shareholders without regard to the company's earnings or profitability. ...
  41. Correction

    A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. ...
  42. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  43. Compounding

    The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other ...
  44. Corporate Inversion

    Re-incorporating a company overseas in order to reduce the tax burden on income earned abroad.
  45. Business To Business - B To B

    A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or ...
  46. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  47. Bailout

    A situation in which a business, individual or government offers money to a failing business in order to prevent the consequences ...
  48. Agency Problem

    A conflict of interest inherent in any relationship where one party is expected to act in another's best interests. The problem ...
  49. Franked Dividend

    An arrangement in Australia that eliminates the double taxation of dividends. Dividends are dispersed with tax imputations ...
  50. Imputed Interest

    A term that describes interest that is considered to be paid for tax purposes even though no interest payment has been made. ...
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