Investing - All Content

  1. What To Expect From The Real Estate Market In 2014

    2014 holds some good news for the housing market, with gains in average home prices allowing more and more home owners to get their mortgages above water.
  2. Philly Fed Survey: Valuable To Investors?

    For many investors, the Philly Fed's monthly manufacturing survey provides important clues about the direction of the economy. But trading on the monthly report is probably best left to the professionals since it has a very short-term impact on the market.
  3. A Fresh Look At The Financial Markets

    Different markets provide unique opportunities and risks for investors. Find out more here.
  4. What To Expect From REITs In 2014

    While REITs will face a number of challenges in 2014, one particular issue will be the focus of investors: rising interest rates.
  5. Trailing-Stop/Stop-Loss Combo Leads To Winning Trades

    Combine trailing stops with stop-loss orders to reduce risk and protect portfolio value.
  6. How To Pay Your Forex Broker

    Three types of commissions are used in this market. Learn how to get the best deal.
  7. Investing in Leveraged Buyouts (LBOs): Know the Risks

    Leveraged buyouts allow investors to make large acquisitions without committing a lot of capital. But LBOs carry big risks and can result in huge returns or huge losses.
  8. How to Value Companies With Negative Earnings

    For some investors, the possibility of stumbling upon a small biotech with a potential blockbuster drug, or a junior miner with a giant mineral discovery, makes the risk of investing in companies with negative earnings well worth taking.
  9. Bond Yields: Current Yield And YTM

    A bond's current yield, also called "bond yield," is the interest it pays annually divided by the bond's price. A stock's current yield, also called "dividend yield," is the sum of its annual dividends divided by the stock's price.
  10. You Can't Follow Everything: Managing Stock Research

    Don't suffer from paralysis by analysis; find out how to do an effective and manageable job of stock watching.
  11. By George: Investing The Soros Way

    Soros turned an original seed funding of $12 million into $20 billion by the first decade of the 21st century. Can regular folks invest like George Soros?
  12. Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  13. Enhance Your Portfolio With Active Equity

    This strategy provides the potential for larger returns while using less capital.
  14. A Primer On Collateralized Debt Obligation (CDOs)

    A collateralized debt obligation, or CDO, is a structured financial product backed by a pool of loans. When a retail or commercial bank approves loans such as mortgages, auto loans or credit cards to individuals or businesses, these loans are then sold to an investment bank.
  15. Comparing The P/E, EPS And Earnings Yield

    P/E may be the established standard for valuation purposes, but the earnings yield is especially useful for comparing potential returns across different instruments.
  16. An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!
  17. Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  18. Earn More Profit With Less Trading

    Avoiding overtrading can save your money and your sanity. Find out how to slow your turnover and build your profits.
  19. Are Hedged Mutual Funds For You?

    Long the purview of institutional investors and ultra-wealthy individuals, financial services firms are making alternative investment strategies available to a wider audience of investors. Understanding both traditional hedge fund strategies and their "lite" versions will help you decide whether the latest incarnation of these investment vehicles should have a place in your portfolio.
  20. Turnaround Titan: How Carl Icahn Does It

    Carl Icahn's investment strategy, explained to regular investors.
  21. How To Find A New Financial Advisor Who's Right For You

    It is a jolt when a long-time financial consultant leaves your sphere, because he or she has retired, passed away or been fired from his or her investment firm. One thing is for sure: You shouldn’t make a snap decision or jump to a hasty conclusion.
  22. Using The Mirror Trading Strategy For Stocks

    Mirror investing offers transparency and the ability to benefit from someone else’s investment expertise, but it could well be a fad that appeals to a limited number of investors.
  23. Risk Management Techniques For Active Traders

    Use stop-loss and take-profit points to your advantage with these strategies.
  24. The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  25. Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  26. Challenges Faced When Analyzing Green Chip Stocks

    The fact that a green chip is not yet a blue chip should not alarm investors, but they need to be aware of the differences and challenges that can arise from assuming these are durable companies with sustainable competitive advantages.
  27. An Introduction To Factor Investing

    Factor investing delivers risk adjusted results that deliver the same or better investment returns as the overall market but with less risk.
  28. What Are The Odds Of Scoring A Winning Trade?

    Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why.
  29. Black Swan Events And Investment

    These world-changing events are rare and difficult to predict, but they have serious implications for your investments.
  30. Reducing Risk With Options

    If you want to use leverage to your advantage, you must know how many contracts to buy.
  31. Investing in Foreign Stocks: ADRs and GDRs

    Depositary Receipts are easy ways to invest in foreign stocks, regardless of what part of the world you live in.
  32. The Optimal Use Of Financial Leverage In A Corporate Capital Structure

    The amount of debt and equity that makes up a company's capital structure has many risk and return implications.
  33. Achieving Optimal Asset Allocation

    Minimizing risk while maximizing return is any investor's prime goal. The right mix of securities is the key to achieving your optimal asset allocation.
  34. Can Investors Trust The P/E Ratio?

    The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.
  35. Buying A House Sight Unseen: Good Deal Or Bad Mistake?

    There are significant risks that need to be acknowledged before buying a home without viewing it in person.
  36. Calculating Beta: Portfolio Math For The Average Investor

    Beta is a useful tool for calculating risk, but the formulas provided online aren't specific to you. Learn how to make your own.
  37. Six Critical Rules For Successful Retirement Investing

    Specific retirement investing "rule of thumb" tips are helpful, but there are broader guidelines to follow if you want to have enough income to retire when and how you want.
  38. The Multiple Strategies Of Hedge Funds

    Hedge fund investors or potential investors need to understand how much risk hedge funds take in making money.
  39. How To Trade The News

    Regardless of your investing horizon, learning to trade the news is an essential skill for astute portfolio management and long-term performance.
  40. How Much Exposure to Technology Stocks Should You Have?

    How Much of a Technology-Stocks Exposure Should You Have in your portfolio? Every investor is totally different, in many cases it has more to do with the individual’s risk tolerance.
  41. Understanding Bond Prices and Yields

    Understanding this relationship can help an investor in any market.
  42. CMO vs CDO: Same Outside, Different Inside

    The concept of collateralizing and structured financing predates the market for collateralized mortgage obligations and collateralized debt obligations.
  43. The Evolution Of Money Management

    We look at the development of the money management profession and how it impacts professional money managers today.
  44. A Guide To Core-Satellite Investing

    Find out how this approach reduces risk and costs so you can maximize your portfolio's return.
  45. Using Time Horizons In Investing

    Time-horizon investing is all about planning. You need to think about your goals and select investments based on the amount of time you have until the goal must be funded.
  46. Basics Of The Mechanics Behind Electronic Trading

    What was once associated with shouting traders and wild hand gestures has now become more closely associated with statisticians and computer programmers.
  47. The Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component of any attempt to analyze a company for investment. After all, when you invest in a share of stock or an entire business, you want to know you are paying a sensible price.
  48. Ostrich Effect And Passive Investing

    Learn how to take a hands-off approach to your portfolio without sticking your head in the sand.
  49. Discounting With The Discount Rate

    The discount rate is the interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. Let's say you need $1,000 one year from now to go on vacation. We can use the discount rate to determine how much money you would need to have today to have $1,000 in one year.
  50. Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  51. 5 Businesses That Started During A Recession

    These companies found success despite being started during economic downturns.
  52. Stocks Remain The Best Long-Term Bet

    When looking at a wide set of data, it becomes clear that stocks are still the best way to maximize a portfolio's long-term growth potential.
  53. How Do I Know I Can Trust My Financial Advisor?

    Savvy investors know to ask an advisor questions on these five essential subjects:
  54. Investment Strategies For Volatile Markets

    Read on to learn some investment strategies when the volatility is high.
  55. Explaining The Efficient Frontier

    Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
  56. Why And When Do Countries Default?

    Countries can, and periodically do, default on their debt. This happens when the government is either unable or unwilling to make good on its fiscal promises.
  57. Why Forward Contracts Are The Foundation Of All Derivatives

    This article expands on the complex structure of derivatives by explaining how an investor can assess interest rate parity and implement covered interest arbitrage by using a currency forward contract to generate a risk-free rate of return.
  58. A Million Dollars Isn’t What It Used To Be

    In 2007, an investor with $1 million could earn $60,000 annually on a certificate of deposit. Today, that same CD would earn $12,000, which makes things a lot more difficult.
  59. Reading The MBA Mortgage Purchase Index

    By following the trend shown in the MBA Purchase Index, investors can identify investment opportunities in businesses that are poised to benefit, and find cautionary signals around industries and companies that are likely to suffer.
  60. The International Fisher Effect: An Introduction

    The Fisher models have the ability to illustrate the expected relationship between interest rates, inflation and exchange rates.
  61. How Effective Is The Chinese Wall?

    Because underwriters work on one side of the Chinese wall and analysts work on the other side, information gathered by the underwriters is not supposed to be shared with analysts.
  62. What Is Market Efficiency?

    The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?
  63. What Are Hedge Funds?

    Hedge funds may be similar to mutual funds in some ways, but they differ in other ways like fee structure. Is a hedge fund for you?
  64. Determining Risk And The Risk Pyramid

    Many investors do not understand how to determine the risk level their individual portfolios should bear.
  65. Adapt To A Bear Market

    Learn how your portfolio should evolve to suit bear market conditions.
  66. Balance Sheet: Analyzing Owners' Equity

    Analyzing owners’ equity is an important analytics tool, but it should be done in the context of other tools such as analyzing the assets and liabilities on the balance sheet.
  67. Market Volatility Strategy: Collars

    Find out which protective or bullish collar will result in your optimal risk/return level.
  68. Sovereign Wealth Funds - Friend Or Foe?

    With $5.86 trillion in assets as of September 2013, SWFs have a great deal of clout in financial markets. But as the majority of SWFs are located in the Middle East and Asia, whether these largely opaque entities are friends or foes of the nations where they invest has been the subject of hot debate from time to time.
  69. The U.S. National Spending And Debt

    Just like any average American household, government overspending can carry on for extended periods by rolling over debt and borrowing more and more money in what seems like a never-ending game of chasing our tail.
  70. What The National Debt Means To You

    The U.S. deficit seems to grow every year. But how does it actually affect you?
  71. Debt Monetization: A Nearsighted Government Policy?

    We look at whether this financial practice benefits a government in the long term.
  72. The Unique Ways Women Approach Finance

    Understanding gender differences and how they are changing is fundamental to understanding the investing world.
  73. The Basics Of Short Selling

    Short sellers enable the markets to function smoothly by providing liquidity, and also serve as a restraining influence on investors’ over-exuberance.
  74. To Sell Or Not To Sell

    Learn some tips on how to exit a position to the best of your advantage.
  75. Introduction to Stock Trader Types

    Being a stock trader can be both profitable and gratifying. To maximize the financial benefits and your own enjoyment, you need to decide what kind of stock trader you want to become. The right fit depends on personality, time availability, and capital investment.
  76. Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  77. An Introduction To Structured Products

    Learn a simple way to bring the benefits of derivatives into your portfolio.
  78. Fund Of Funds - High Society For The Little Guy

    Like a mutual fund, FOFs provide instant diversity by grouping many hedge funds into one product.
  79. A Look At National Debt And Government Bonds

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  80. What Are Frontier Markets?

    Frontier markets refer to equity markets in small nations that are at an earlier stage of economic and political development than larger and more mature emerging markets. These markets typically have modest market capitalization, limited investability and liquidity, and few sources of market information.
  81. Nobody Wins When The Government Shuts Down

    The government is on the verge of its first shutdown in 17 years because some Republican members in the House are insisting that President Obama either delay or repeal parts of Obamacare.
  82. Callable CDs: Check The Fine Print

    These offer higher returns than regular certificates of deposit, but there's a catch.
  83. How Interest Rates Affect Property Values

    When interest rates fall, real estate prices tend to increase. Why? Find out here.
  84. How To Read The Michigan Consumer Sentiment Index

    The Michigan Consumer Sentiment Index has provided a key leading indicator for investors and economists for decades. This respected index is published monthly from the results of random telephone surveys.
  85. Difference Between Short Selling And Put Options

    Short selling and put options are essentially bearish strategies used to speculate on a potential decline in a security or index, or to hedge downside risk in a portfolio or specific stock.
  86. Pay Attention To Your Fund’s Expense Ratio

    Despite trends indicating an overall decrease in fees across many fund categories, investors should still pay attention to expense ratios: even small differences in fees can have a significant impact on your investment over time.
  87. Tortoises Win The Retirement Race

    People are having children later in life, which leaves them with less time to accumulate savings for retirement. For late boomers, that means the time is now to start getting serious about retirement, even if they aren't empty-nesters just yet.
  88. Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  89. Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  90. Introduction To Retirement Money Market Accounts

    Money market funds are used in retirement plans and accounts because they are liquid, stable and pay competitive rates of interest.
  91. Tailoring Your Investment Plan

    Start your own investing adventure with the help of some simple guidelines.
  92. Getting Shocked By Utility Stocks

    Utility stocks are traditionally thought of as safe investments, no matter what happens at Wall Street. A recent analysis shows that this isn't really the case.
  93. Diversification: Protecting Portfolios From Mass Destruction

    This investing strategy retains its charm as a protection against random events in the market.
  94. The Difference Between Emerging And Frontier Markets

    Emerging and frontier markets offer investors global diversification in return for higher risk. These sectors have performed well over the past few years, but do your homework before you venture into them.
  95. What Are Factor Model ETFs?

    Given that stock picking is not generally effective, trackers that simply follow an index have become very popular. However, trackers have their disadvantages, too, so hybrid models between the two extremes have naturally and logically evolved.
  96. Convertible Bonds

    A convertible bond is a bond the investor can exchange for a specific amount of company stock at a later date. It combines a bond and a call option. The bondholder can benefit if there's an increase in the stock's value. The amount of stock that a bondholder can acquire is subject to a pre-determined formula.
  97. How Analyzing Economic Trends Will Help You Save Money

    It may seem like a tactic for active traders, but following economic trends can help you to save and make money.
  98. Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know when to use one versus the other.
  99. Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.
  100. 6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.
Frequently Asked Questions
  1. What is a BRIC nation?

    BRIC is an acronym for the combined economies of Brazil, Russia, India and China. The economies of these four nations are collectively called "the BRICs," "the BRIC countries," "the BRIC economies" or the "Big Four." The countries currently represent about 25% of the world's land mass and 40% of its population.
  2. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008. The act's numerous provisions, spelled out over thousands of pages, are scheduled to be implemented over a period of several years and are intended to decrease various risks in the U.S.
  3. I want to invest my emergency fund to earn interest. What is a relatively safe and liquid investment I can easily withdraw from if disaster struck?

    When considering where to put your emergency money, a key consideration is making sure you'll be able to access the money quickly, easily and without penalty, when you need it. Financial professionals don't recommend investing your emergency fund in the stock market because stocks are volatile.
  4. What is a triple tax-free municipal bond?

    At its core, a triple tax-free municipal bond is just like any corporate bond: it is a debt instrument, a loan given to a government authority or municipality in order to help it meet certain financial objectives or complete projects in the community.
Trading Center