Investing  All Content

What is the difference between the rule of 70 and the rule of 72?
Find out more about the rule of 70 and the rule of 72, what the two rules measure and the main difference between them. 
When does a primary market become a secondary market?
Understand the difference between the primary and secondary markets and why the secondary market is where investors go to ... 
Why should investors care about risk weighted assets of a bank?
Discover why investors should care about riskweighted assets. Riskweighted assets reflect how much of a bank's asset base ... 
Why is the automotive sector a good choice for value investing?
Discover the reasons that make the automotive sector a good choice for value investing. The automotive sector is highly leveraged ... 
What are the risks of investing in a company that has a high net debt?
Learn how indebtedness affects investment risk. Find out which other factors to considered in fundamental analysis and if ... 
How do interest rates affect a bond's coupon rate?
Find out how the changes in the national interest rate affect the coupon rates of newly issued bonds and why coupon rates ... 
How can I calculate a bond's coupon rate in Excel?
Find out how to use Microsoft Excel to calculate the coupon rate of a bond using its par value and the amount and frequency ... 
What are the differences between an MLP exchange traded fund (ETF) and an MLP exchange ...
Learn about the tax differences between master limited partnership ETFs and ETNs, and understand the tax advantages of owning ... 
Why Some Investors Are Tilting Toward TIPS
Last month’s fiveyear TIPS auction drew nearly $48 billion in interest, a sign of recent renewed demand for this inflation ... 
The Big Chill: What’s Wrong With The U.S. Consumer
Based on the most recent April data, investors may, once again, be disappointed when the secondquarter gross domestic product ... 
Calculating the HerfindahlHirschman Index (HHI)
The HerfindhalHirschman Index, (HHI) is a measure of market concentration and competition among market participants. 
What are Noncurrent Assets?
Noncurrent assets are property that a company owns that will last for more than one year. 
What More Volatility Means For Momentum Stocks
One byproduct of the recent tick higher in bond yields: a meaningful rise in volatility for both stocks and bonds. 
How To Implement A Smart Beta Investing Strategy
Smart beta investing is the notion of rewriting investment rules to improve investment outcomes by targeting exposures to ... 
If my brotherinlaw, who works at a pharmaceutical company, tells me about his research ...
Discover what tier 1 capital measures about a bank. Tier 1 capital levels were mandated by Basel III following the financial ... 
What are the consequences of one party violating the terms of a letter of intent?
Learn what the average profit margin is for a company in the chemicals sector and what to look for when interpreting high ... 
On what basis does the sustainable growth rate fluctuate?
Learn about the differences between the calculations for the yield to maturity and spot rate for determining the present ... 
What are the risks involved in a banker's acceptance?
Learn about the different kinds of college savings accounts, how they can benefit a college saver and how to open these savings ... 
What is the breakdown of subjects covered on the Series 6 exam?
Learn about the riskreturn tradeoff for investing in stocks versus lowrisk Treasurys and bonds, and understand the types ... 
What are some classes I can take to prepare for the Series 6 exam?
Learn about how the riskreturn tradeoff applies to bond yields, and the different types of risks associated with investing ... 
What is the difference between a banker's acceptance and a postdated check?
Learn more about speculation, stocks and options and how speculators use these financial instruments in an attempt to profit ... 
How legitimate are companies that advertise debt consolidation for all my credit ...
Learn about how fundamental analysis ratios can be combined with quantitative stock screening methods and how technical indicators ... 
What are the major types of insurance policies that insurance companies will offer?
Explore one of the largest market sectors, the chemicals sector, and learn which primary basic commodities are used in producing ... 
Tips for Boosting Your Retirement Income
Here are some best practices on how to generate as much retirement income as possible. 
The EMAG Emerging Mkts Bond ETF: Worth the Risk?
The Market Vectors Emerging Markets Aggregate Bond ETF (EMAG) might offer longterm rewards, but is now the best time to ... 
5 Dividend ETFs with Growth Potential
A quick look at a few ETFs with substantial growth potential. 
What is the average annual dividend yield of companies in the electronics sector?
Explore the chemicals sector, one of the largest market sectors, and learn which companies in the sector offer the highest ... 
How does my insurance company determine what premiums I have to pay for coverage?
Learn about some of the quantitative finance measures that investors without a strong math background can use in analyzing ... 
What is the average annual dividend yield of companies in the insurance sector?
Discover why value investors purchase electronics stocks, which are highly sensitive to the business cycle, creating extremes ... 
What level of return on equity is average for companies in the chemicals sector?
Learn more about the modified duration in fixed income securities and how to calculate a bond's modified Macaulay duration ... 
What percentage of a diversified portfolio should be exposed to the insurance sector?
Learn how it is critical to innovate and improve financial models and techniques used in quantitative analysis, and understand ... 
What is the average profit margin of a company in the chemicals sector?
Learn more about the Macaulay duration and the modified duration, how to calculate a bond's Macaulay duration and modified ... 
How To Invest In InternetConnected Cars
Companies are combining automotive technology with phones, watches, and computers to create a new, profitable industry. 
The Risks Of Trading LowVolume Stocks
Low volume stocks may be susceptible to price manipulation and liquidity problems. Beware of these and other risks before ... 
The Rewards Of Trading Stocks With Low Volume
Trading in stocks which have low volume is risky, but it does offer a lot of high return potential. Investopedia explains ... 
How & Why Interest Rates Affect Options
The Fed is expected to change interest rates soon. We explain how a change in interest rates impacts option valuations. 
10 Steps To Becoming A Day Trader
Want to be the master of your career by becoming a fulltime day trader? Follow these 10 steps to be a successful trader. 
Top Skills Hedge Funds Look For In Job Candidates
Lucrative salary, high perks, and best quantitative brains at work. What are the top skills a candidate needs to get a job ... 
How To Value Airline Stocks
We explain what drives the stocks of airline companies and how best to assess their values. 
How many years can structural unemployment last?
Understand the two different types of price elasticities, and learn how each one affects the stock purchasing decision of ... 
What are the advantages and disadvantages of zerobased budgeting in accounting?
Learn how the information ratio is calculated as a riskadjusted measure of performance, and understand how it seeks to differentiate ... 
What does tier 1 capital tell investors about a bank's operations?
Learn about which financial instruments have par values and what this means about the market price of the most common of ... 
What are some of the wellknown noload funds?
Find out more about the capital to riskweighted assets ratio, what the ratio measures and the formula used to calculate ... 
What can cause the marginal propensity to consume to change over time?
Learn about the dividend payout ratio and dividend yield, what the ratios measure and the difference between the dividend ... 
What is the difference between a spot rate and a forward rate?
Understand the concept of intangible assets and learn how they are handled in the purchase agreement when a company is bought ... 
What is the risk return tradeoff for bonds?
Find out more about the Macaulay duration and modified duration, how to calculate them and the difference between the Macaulay ... 
Which is more important to economists, the marginal propensity to consume or the ...
Find out more about economic profit, the formula used for calculating economic profit and how to calculate a company's economic ... 
What are the different types of college savings accounts?
Find out more about the Macaulay duration and zerocoupon bonds and how to calculate the Macaulay duration of a zerocoupon ... 
What are the differences between a bond's yield to maturity and the spot rate?
Learn whether to expect growth or income from investing in the consumer packaged goods sector. This sector is full of companies ... 
How can a business eliminate deadweight loss from government regulation?
Understand the basics of the stochastic oscillator and how to use this momentum metric in tandem with other indicators to ... 
What is the risk return tradeoff for stocks?
Learn more about the Macaulay duration, how to calculate the Macaulay duration for a bond and how the Macaulay duration is ... 
What is the formula for calculating the capital to risk weight assets ratio for a ...
Learn about the Macaulay duration and zerocoupon bonds, the formula used for the calculation and how to calculate the Macaulay ... 
How do companies benefit from price discrimination?
Learn what the average pricetoearnings ratio is for the insurance sector and why the average pricetoearnings ratio should ... 
What is the difference between a primary and a secondary market?
Examine the return on assets ratio as it relates to the insurance industry, and learn what the industry average is for return ... 
For what reasons are electronics stocks commonly purchased by a value investor?
Learn about the breakdown of subjects on the Series 6 while reviewing important aspects of the exam, including its content ... 
Which commodities are the main input materials for the chemicals sector?
Learn about the most wellknown noload funds. Noload funds are unique in that there are no costs to buy and sell nor any ... 
Which companies in the chemicals sector pay the highest dividends?
Learn what the average annual dividend yield of insurance companies is and which factors should be considered when choosing ... 
Why is marketing important to a company in the utilities sector?
Find out what a banker's acceptance is, how it works, and why it should be considered a safe and liquid money market instrument. 
MicroPatterns: Looking At The Smaller Picture
Micropatterns within trading ranges reveal hidden characteristics of the bullbear struggle. 
What is the difference between a modified duration and a Macaulay duration?
Understand how investors and savers can use money market mutual funds and conventional savings accounts, and learn the differences ... 
Can the marginal propensity to consume ever be negative?
Find out when a bond's yield to maturity is equal to its coupon rate, and learn about the basic components of bonds and how ... 
How do I calculate a bond's modified duration using Excel?
Understand the benefits of investing in a money market mutual fund, and learn why investors use this type of account in volatile ... 
How do I calculate the loantovalue ratio using Excel?
Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ... 
The Pros & Cons Of A Strong Dollar
As the U.S. economy has emerged from the Great Recession, the strength of the U.S. dollar has also improved. 
Reading And Adapting To Market Performance
Performance that aligns with broad market direction exposes a major strategic weakness. 
What To Do With Stocks That Hit AllTime Highs
Apply this specialized set of risk management and technical rules when your positions are trading at new highs. 
When is a bond's coupon rate and yield to maturity the same?
Read about some of the major business risks assumed by Enron and Arthur Andersen, its accounting partner, before its infamous ... 
What are the benefits and shortfalls of the HerfindahlHirschman Index?
Learn about the differences between equity and debt financing and how they impact financials. Find out how businesses determine ... 
What is an aggregate limit and what type of insurance is it usually associated with?
Understand why tangible assets are important to a company. Learn why the ownership of a tangible asset has benefits as well ... 
What happens to the intangible assets of a company when it is bought or sold?
Discover the bestperforming stock market sectors over the past five years and learn which sectors continue to offer high ... 
Should I expect growth or income from buying stock in the consumer packaged goods ...
Find out how annual returns are expressed in financial statements. How do fundamental investors measure annual returns? What ... 
Understanding The Price Vs. Time Equation
Price and time generate vastly different reward: risk profiles. 
Using Excel PV Function to compute Bonds PV
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future at any predetermined ... 
What is the difference between Macaulay duration and modified duration?
Find out more about the forward price to earnings ratio and how to calculate the forward price to earnings ratios of companies ... 
Why should I register as a Limited Liability Company (LLC) if I am selfemployed ...
Understand the difference between a company's levered beta and unlevered beta. Learn how debt affects a company's levered ... 
What is the difference between a copay and a deductible?
Learn how the correlation coefficient may be used to predict the relationship between the returns of two stocks, but also ... 
How does the International Monetary Fund function?
Learn how expenditures and distributions affect the fixed charge coverage ratio, and how this ratio is used to evaluate a ... 
Why is there controversy over the use of the information ratio?
Understand the effect that stock dividends have on a company's retained earnings account and how large and small dividends ... 
How can I calculate the Macaulay duration of a zerocoupon bond?
Find out more about a real estate investment trust's funds from operations and how to calculate the funds from operations ... 
How Microsoft & Apple's Balance Sheets Compare
Looking at two iconic companies, Microsoft and Apple, whose balance is sheet is stronger and where? 
Why are the tangible assets of a company important to investors?
Learn what the significant difference is between a financial forecast and a financial plan, for either individuals or for ... 
How does equity financing affect a company's financials compared with the effects ...
Understand the formula used for calculating a company's sustainable growth rate and the factors that influence changes in ... 
How does price elasticity affect my stock purchase decisions?
Explore the many possible corporate positions which may, depending on the size and structure of a business, be responsible ... 
What are the advantages and disadvantages of horizontal integration?
Understand the criteria for recognizing revenue recognition. Learn the principles behind when a company can consider its ... 
Which financial instruments have par values?
Understand the difference between shortterm investments and marketable equity securities, and learn the importance of shortterm ... 
What is the Activities of Daily Living (ADL) hierarchy scale?
Find out how a banker's acceptance is different than a postdated check, even though both instruments represent a claim against ... 
How do fixed assets become impaired?
Find out how an investor can use the procedure of marginal analysis to make investment decisions by comparing marginal costs ... 
How can I calculate a company's forward p/e in Excel?
Discover why trading volume is higher when the price of a security changes. Supply and demand is the mechanism through which ... 
How can I use the correlation coefficient to predict returns in the stock market?
Read about simple interest loans, how they function, and some of the loan products or contracts that are most likely to carry ... 
What is the difference between horizontal integration and vertical integration?
Learn about the differences between bonds and preferred shares, including how payments are made on them and how corporate ... 
How do unfunded capital expenditures and distributions affect the fixed charge coverage ...
Learn about the most common solvency ratio and what it measures. Understand two other liquidity ratios that are commonly ... 
How do stock dividends affect the retained earnings account?
Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... 
How does monetary policy influence the Fisher effect?
Find out if paidup capital generated by the sale of stock has to be repaid by the issuing company and how these funds are ... 
How is the ability to perform Activities of Daily Living (ADL) measured?
Find out how to apply sensitivity analysis to your investment decisions, why sensitivity analysis might be useful and what ... 
Top 6 Money Management Apps For 2015
Spenders who should be keeping better track of their cash flow will benefit the most from these money management apps. 
What New Grads Need To Do On Their First Job
It's never too early to start saving aside something for retirement. But what purpose could a retirement account serve when ... 
Steps to Starting Up an Independent Broker Dealer
Launching your own brokerdealer is a lot of work, but the potential payoff is great, both personally and financially. 
Why Hedge Fund Managers Make Good Advisory Clients
Superbusy hedge fund managers should be viewed as an opportunity for sophisticated financial advisors who can step in and ... 
SmallCap Biotech Stocks to Watch
Home runs in the small cap biotechnology market are hard to come by. Here are some names to watch. 
A Look at How the UltraWealthy Invest
Ultrawealthy investors are cautious this year as they approach the markets. Many target mutual funds and stocks, but most ...
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Frequently Asked Questions

What's a good forex strategy to use when spotting a Wedgeshaped Pattern?
Find out more about the rising and falling wedge formations and how to implement a forex strategy when you spot these patterns ... 
What is a "linear" exposure in Value at Risk (VaR) calculation?
Learn how the valueatrisk (VaR) calculation is used for portfolios with linear risk as opposed to nonlinear risk, and understand ... 
What happens when a company defaults on its commercial paper obligations?
Read about the possible consequences of a large corporation defaulting on its commercial paper obligations even though the ... 
What's the most accurate way to find out a nation's nominal GDP?
Learn about easytouse and most reliable sources for finding a country's nominal GDP data and which sources contain the ...
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