Investing Basics

  1. Dutch Disease

    Negative consequences arising from large increases in a country's income. Dutch disease is primarily associated with a natural ...
  2. Income Approach

    A real estate appraisal method that allows investors to estimate the value of the property based on the income produced. ...
  3. Dividend Per Share - DPS

    The the sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total dividends paid out ...
  4. Insurable Interest

    An economic stake in an event for which an insurance policy is purchased to mitigate risk of loss.
  5. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  6. Nominal Rate Of Return

    The amount of money generated by an investment before expenses such as taxes, investment fees and inflation are factored ...
  7. DuPont Identity

    An expression that breaks return on equity (ROE) down into three parts: profit margin, total asset turnover and financial ...
  8. Agency Costs

    A type of internal cost that arises from, or must be paid to, an agent acting on behalf of a principal. Agency costs arise ...
  9. Compliance Department

    The department or unit within a brokerage firm, bank or financial institution that ensures compliance with all applicable ...
  10. H-Shares

    A share of a company incorporated in the Chinese mainland that is listed on the Hong Kong Stock Exchange or other foreign ...
  11. Mean-Variance Analysis

    The process of weighing risk against expected return. Mean variance analysis is a component of modern portfolio theory, which ...
  12. Lemons Problem

    The issue of information asymmetry between the buyer and seller of an investment or product. Lemons problem was popularized ...
  13. ADV Form

    A required submission to the Securities and Exchange Commission (SEC) by a professional investment advisor that specifies ...
  14. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  15. Dividends Received Deduction - DRD

    A tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake. The ...
  16. Middle Market Firm

    A firm with sizeable annual revenues, ranging from $50 million to $1 billion. As the term implies, such a firm is one that ...
  17. Corporate Governance

    The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially ...
  18. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm ...
  19. Growth Rates

    The amount of increase that a specific variable has gained within a specific period and context. For investors, this typically ...
  20. A-Shares

    Shares in mainland China-based companies that trade on Chinese stock exchanges such as the Shanghai Stock Exchange and the ...
  21. Contractionary Policy

    A type of policy that is used as a macroeconomic tool by the country's central bank or finance ministry to slow down an economy. ...
  22. Central Counterparty Clearing House - CCP

    An organization that exists in various European countries that helps facilitate trading done in European derivatives and ...
  23. Bid

    1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the ...
  24. Foreign Direct Investment - FDI

    A foreign direct Investment (or FDI) is an investment made by a company or entity based in one country, into a company or ...
  25. Depositary Receipt

    A negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities.
  26. Expectations Theory

    The hypothesis that long-term interest rates contain a prediction of future short-term interest rates. Expectations theory ...
  27. Monetary Aggregates

    Broad categories measuring the total value of the money supply within an economy. In the United States, the standardized ...
  28. Four Asian Tigers

    The high-growth economies of Hong Kong, Singapore, South Korea and Taiwan. The four Asian tigers consistently maintained ...
  29. Top 5 Small-Cap ETFs (IWM,IJR,VB,VBR,IWO)

    These five small-cap ETFs have all appreciated since their inception, have low expense ratios and pay a dividend.
  30. Analysis Paralysis: How to Manage Stock Research

    Don't suffer from paralysis by analysis; find out how to do an effective and manageable job of stock watching.
  31. Smart Beta ETFs: Popular but Advisors Are Wary

    Smart beta ETFs are exploding in popularity among investors, but many financial advisors remain skeptical of them.
  32. 3 ETFs That Beat the S&P 500 (SPLV,RSP,NOBL)

    These three ETFs have consistently beat the S&P 500 since their inception.
  33. Chart of the Week: The Main Ingredient Required for Further Stock Gains

    Global stocks are up year-to-date. Chief Investment Strategist Richard Turnill explains what's required for equities to move ...
  34. Why Playing It Safe Could Hurt Your Retirement

    The stock market has its ups and downs. But when it comes to retirement planning, investing is a great strategy for building ...
  35. How To Profit From Inflation

    While rising prices are bad news for consumers, inflation can be quite profitable for investors.
  36. Updated Investment Views for the Second Half

    We share how to potentially position portfolios for the market and economic environment we see ahead for the remainder of ...
  37. Avoid These Common Investing Psychology Traps

    There are a number of very common psychological traps or errors that investors typically make. You can save a lot of money ...
  38. The Number One Reason Why Most Traders Fail

    We show you the simple tools, availble to everyone, to succeed as an active trader: education, experience, charts, vision, ...
  39. 7 Quality Stocks That Don’t Pay a Dividend (PCLN,BIIB,FB,GOOGL)

    These seven S&P 500 companies can afford to pay a dividend, but they prefer to invest in growth.
  40. Social Security: Saving vs. Delaying Benefits

    If you are turning 66 and still working, does it make sense to put Social Security benefits in a savings account or CD or ...
  41. The Limits of Excess

    Low yields and high equities cannot last forever. Now we wonder what are we to make of this conundrum of record low bond ...
  42. 3 Stocks That Could Benefit from Civil Unrest (PZZA,DPZ,AMZN)

    Civil unrest could lead to increased sales for these three companies.
  43. 4 Stocks Vulnerable to Amazon (AMZN,CONN,WMT,TGT)

    Amazon has stolen market share from many, but these four companies in particular have been hit hard.
  44. 6 Investing Mistakes That the Ultra Wealthy Don't Make

    Understand who ultra-high-net-worth individuals are and how they invest. Learn about the six key investment mistakes that ...
  45. Where Should 60-Somethings Hold Cash for Safety?

    Those nearing retirement often consider allocating part of their capital to cash instruments. Here are some tips on how to ...
  46. Young Investors: Should You Care About Dividends?

    Young investors who want to grow their net worth as quickly as possible should avoid dividend-paying stocks.
  47. Should Investors Care that Stocks are Expensive?

    Coincident to the latest string of market records, another milestone was recently hit.
  48. Low Rates Force Advisors to Rebuild Bond Ladders

    Prolonged low interest rates have some advisors taking a new approach with their bond-laddering strategies.
  49. Embracing a Short-Term Boring Retirement Plan

    A financial planner offers his take on retirement planning and explains how his short-term boring, long-term exciting approach ...
  50. Investment Risks You Should Take in Your 20s

    You can take more risks when investing in your 20s, but not until you do this first.
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