Investing - All Content

  1. How does a bull market in stocks affect the bond market?

    Take a deeper look at the relationship between the bond market and equities, and see what might happen to bonds during the ...
  2. How are yields taxed on a certificate of deposit (CD)?

    Learn how interest earned on a certificate of deposit is taxed and how this may reduce the total return of an investment ...
  3. What are the safest investments during a bear market?

    Learn what investments carry the least amount of risk during a bear market and how they can be used to hedge against falling ...
  4. What skills should I acquire to take advantage of arbitrage trading?

    Understand what arbitrage trading involves and what the necessary skill set is that a trader must develop in order to master ...
  5. Motif Investing vs. ETFs: What's The Difference?

    While there are many apparent similarities between ETFs and newer motif investments, there are also some important differences. ...
  6. Cardinal Points For Mapping a Trading Route

    A successful trading plan addresses four key elements of trading: prediction, timing, volatility and risk.
  7. What are the risks involved in OTC (over-the-counter) trading?

    Learn about the significant disadvantages and risks that are involved for investors seeking to trade in over-the-counter ...
  8. Are a bank's current assets counted as liquidity?

    Find out how bank assets are defined and how the Federal Reserve controls the definitions of, requirements for, and availability ...
  9. Why do preferred stocks have a face value and why is it different than market value?

    Read about the differences between the face value and market value of a preferred stock, including why preferred stocks often ...
  10. How should young people invest in a bear market?

    Learn strategies young investors can implement during a bear market that present the greatest opportunity for long-term investment ...
  11. Are treasury bills a good investment for retirement savings?

    Find out whether Treasury bills (T-bills) are a smart investment for retirement, and learn why opportunity cost is a significant ...
  12. Should I use a deferred tax asset for all of my retirement funds?

    Look outside tax-deferred accounts for retirement savings that are worthwhile now and later. Invest a portion in after-tax ...
  13. Are current assets liquid or capital?

    Take a deeper look at liquid current assets for businesses and individuals, and learn how they differ from other types of ...
  14. Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood concept that exerts a huge influence ...
  15. What are common trading strategies used in a bull market?

    Discover four commonly used trading strategies by investors and analysts to make profits from a prolonged bull market, including ...
  16. What is the difference between a company's equity and its shareholders' equity?

    Understand the difference and the interrelationship between shareholders' equity in a company and the company's actual total ...
  17. What proportion of my overall investments should be in securities?

    Understand the various factors that should be considered by individuals in regard to investment portfolio management and ...
  18. The World's Top Emerging Financial Hubs

    Creating a desirable and competitive financial center, a goal among the emerging financial hubs, can be undone by its volatility.
  19. What Drives Oracle Stock Prices?

    Oracle stock price depend on the company keeping ahead of new technologies while also keeping costs low.
  20. How do I implement a forex strategy when spotting a Symmetrical Triangle Pattern?

    Learn the basics of the symmetrical triangle pattern and how this continuation signal can be used to create trade strategy ...
  21. Book Reliable Profits With Pullback Strategies

    Pullbacks generate all sorts of trading opportunities after an active trend thrusts higher or lower.
  22. What is the difference between the cost of capital and required return?

    Take a look at the primary conceptual differences between an investor's required rate of return and an issuing company's ...
  23. How do I use software to make arbitrage trades?

    Understand the meaning of arbitrage trading, and learn how traders employ software programs to detect arbitrage trade opportunities.
  24. How do I use the news to find arbitrage opportunities?

    Learn what risk arbitrage trading is and how this type of arbitrage trading opportunity is available to individual retail ...
  25. Gap Strategies To Try For Intraday Trades

    Many traders lack effective strategies to manage gaps, whether they pop up on open positions or mark the first play of the ...
  26. How do I build a profitable strategy when spotting a Shooting Star pattern?

    Understand the meaning accorded to a shooting star candlestick pattern, and learn a profitable trading strategy than can ...
  27. Does common stock offer the best investment vehicle in a company or sector?

    Look at features of common stock, which make this a type of investment with possible upsides and several important manageable ...
  28. What are the main differences between a Retracement and a Reversal?

    Learn how to discern the difference between a retracement and a reversal, and understand why it is important for traders ...
  29. Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market ...
  30. How effective is creating trade entries after spotting a Shooting Star pattern?

    Explore the effectiveness of trade entries based on identifying a shooting star candlestick and factors that increase the ...
  31. How effective is creating trade entries after spotting a Spinning Top pattern?

    Understand the significance of the spinning top candlestick pattern and learn how to create more effective trade entries ...
  32. How do I build a profitable strategy when spotting a Symmetrical Triangle pattern?

    Understand the basics of the symmetrical triangle chart pattern including formation and how to use this pattern to create ...
  33. A Soaring Housing Market: College Apartments

    How to play the boom in upscale student housing.
  34. Will Alex Tsipras Change The European Economy?

    A debt default and a Euro exit by Greece's leaders would likely cause more harm to Greece's economy than to the EU, of which ...
  35. How To Build Valuation Models Like Black-Scholes (BS)?

    Want to build a model like Black-Scholes? Here are the tips and guidelines for developing a framework with the example of ...
  36. A Look at Blackrock's iShares ETFs

    An Overview of Blackrock iShares ETFs and what makes them unique.
  37. What is the difference between EBIT and EBT?

    Take a closer look at the different calculations and uses of EBT and EBIT, two non-GAAP figures used to compare profitability ...
  38. What is the difference between yield to maturity and the coupon rate?

    Read about some of the basic differences between a debt security's coupon rate and its yield to maturity, and learn which ...
  39. What is the difference between yield to maturity and the spot rate?

    Find out how yield to maturity and spot rate calculations use different discount rates to determine the present market value ...
  40. Why is the Relative Strength Index (RSI) important for traders and analysts?

    Find out why J. Welles Wilder Jr.'s relative strength index (RSI) is a great tool for measuring current price strength and ...
  41. Why is the PEG (price to earnings growth) ratio something I should be looking at ...

    Understand the price/earnings to growth ratio and why it may be a better stock valuation tool than the more widely used price-earnings ...
  42. The Anatomy of Options

    Find out how you can use the "Greeks" to guide your options trading strategy and help balance your portfolio.
  43. How are taxes treated in the consumer price index (CPI)?

    Discover how various taxes are treated, either included or excluded, in the Consumer Price Index, or CPI, and how this affects ...
  44. What is the historical capitalization rate for real estate in New York City?

    Find out about historical trends in Manhattan real estate capitalization rates and learn how these rates are used by people ...
  45. Why was the practice of depreciating assets for accounting purposes created?

    Read about why the practice of depreciation was created and how the uses of depreciation have morphed to adapt to technological ...
  46. What assets are taxable and what assets are not taxable?

    Adjust your taxable income by understanding what assets the IRS taxes. Learn about legal strategies to lower tax liability ...
  47. Why do analysts look at operating cash flow?

    Learn how operating cash flow is used to determine financial health. Examine how cash flow is calculated, and what a low ...
  48. Investing Strategies For The Millennial Generation

    Suggestions to build a long-term plan for the millennial generation, according to their needs and goals.
  49. What is a roll-up merger and why does it occur?

    Find out what a roll-up merger is and how it is executed. See why roll-ups might bring added efficiency and competition into ...
  50. How do I use the PEG (price to earnings growth) ratio to determine whether a stock ...

    Using the PEG, or price/earnings to growth, ratio provides a better picture of a stock's valuation versus simply relying ...
  51. Are accounts receivable used when calculating a company's debt collateral?

    Learn how accounts receivables are recorded as assets on a balance sheet; they are used when calculating a company's total ...
  52. How do I build a profitable strategy when spotting a Three White Soldiers pattern?

    Learn a simple trading strategy implemented based on the bullish market reversal signal given by the three white soldiers ...
  53. Why is the 200 Simple Moving Average (SMA) so common for traders and analysts?

    Learn about the 200 simple moving average (SMA), how it is utilized by traders and analysts, and why it is considered to ...
  54. How effective is creating trade entries after spotting a Symmetrical Triangle pattern?

    Understand the symmetrical triangle pattern and the likely success of the most common breakout trading strategy implemented ...
  55. How do I implement a forex strategy when spotting a Rounding Bottom Pattern?

    Understand the key factors to implementing a profitable forex trading strategy based on recognizing the formation of a rounding ...
  56. How are Stick Sandwich patterns interpreted by analysts and traders?

    Understand the basics of the stick sandwich candlestick pattern and how this reversal signal is interpreted by analysts and ...
  57. How are Three Black Crows patterns interpreted by analysts and traders?

    Understand the basics of the three black crows pattern and how analysts and traders interpret this bearish reversal pattern ...
  58. How effective is creating trade entries after spotting a Three Black Crows pattern?

    Understand the basics of the three black crows candlestick pattern and how this reversal signal is used for the creation ...
  59. Spot Chances For Profits In The Three-Step Cycle

    Markets progress from one price level to the next through an action-reaction-resolution cycle that generates all sorts of ...
  60. How does face value differ from the price of a bond?

    Discover how bonds are traded as investment securities and understand the various terms used in bond trading, including par ...
  61. How do I create a profitable strategy when spotting a Tenkan-Sen Kijun Sen cross?

    Learn how to create a simple trading strategy using the Tenkan Sen and Kijun Sen indicators, part of the Ichimoku cloud technical ...
  62. Why is my bond worth less than face value?

    Find out how bonds can be issued or traded for less than their listed face values, and learn what causes bond prices to fluctuate ...
  63. How long will it take for a savings bond to reach its face value?

    Learn essential information about U.S. savings bonds along with an explanation of the unique characteristics of this popular ...
  64. How do companies measure labor supply in human resources planning?

    Find out how and why a company's human resources department would measure labor supply, and what policies would address a ...
  65. What are the main differences between a Symmetrical Triangle pattern and a pennant?

    Understand the key differences between the symmetrical triangle and pennant patterns, including how they differ in formation, ...
  66. The 10 Worst Mistakes Beginner Traders Make

    Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors, which ...
  67. Work In Progress (WIP)

    Work in progress, also know as WIP, is an asset on the company balance sheet. WIP is the accumulated costs of unfinished ...
  68. Capital Budgeting

    Capital budgeting is a planning process used by companies to evaluate which large projects to invest in, and how to finance ...
  69. Ex Works (EXW)

    Ex Works, or EXW, is an international legal trade term specifying that the seller is responsible to make his goods ready ...
  70. Paid-Up Capital

    Paid-Up Capital is listed in the equity section of the balance sheet. It represents the amount of money shareholders have ...
  71. Why are OTC (over-the-counter) transactions controversial?

    Learn more about over-the-counter transactions, and why OTC traders are considered riskier than traders working with larger ...
  72. What is the difference between arbitrage and hedging?

    Dive into two very important financial concepts: arbitrage and hedging. See how each of these strategies can play a role ...
  73. When are treasury bills best to use in a portfolio?

    Understand the role that U.S. Treasury bills can play in an investment portfolio and why they represent one of the most liquid ...
  74. What is the difference between cost of equity and cost of capital?

    Read about some of the differences between a company's cost of equity and its cost of capital, two measures of its required ...
  75. How can I become a venture capitalist?

    Find out what it takes to become a venture capitalist, and read about some of the primary attributes private equity firms ...
  76. How are treasury bills taxed?

    Read about how the Internal Revenue Service collects taxes on treasury bills purchased from the United States government ...
  77. What is considered a good interest rate for a certificate of deposit (CD)?

    Explore the various options available with certificates of deposit and discover how to find the most lucrative rates for ...
  78. What is arbitrage pricing theory?

    Find out what arbitrage pricing theory is and how it can theoretically be used by investors to generate risk-free profit ...
  79. How do ridesharing companies like Uber make money?

    Discover the services a transportation company such as Uber provides and how the premiere ridesharing company operates and ...
  80. How do intangible assets appear on a balance sheet?

    Understand how various types of intangible assets are handled in a company's accounting and which of them you can find on ...
  81. Is depreciation only used for tangible assets?

    Learn if tangible assets can be depreciated, as well as what other assets are eligible for depreciation so you can account ...
  82. What does a high weighted average cost of capital (WACC) signify?

    Find out what it means for a company to have a relatively high weighted average cost of capital, or WACC, and why this is ...
  83. What are the typical durations for a certificate of deposit?

    Investing in a certificate of deposit offers individuals the ability to earn interest on idle funds with less risk than stock ...
  84. What are the main advantages and disadvantages of using a Simple Moving Average (SMA)?

    Examine some of the potential advantages and disadvantages involved with the use of a simple moving average or an exponential ...
  85. What's the difference between bid-ask spread and bid-ask bounce?

    Understand the difference between the bid-ask spread that determines the buy or sell price for a stock and a bid-ask bounce, ...
  86. How do economists and psychologists calculate diminishing marginal utility differently?

    Find out why disagreements about the validity of the law of diminishing marginal utility usually boil down to arguments about ...
  87. What does the law of diminishing marginal utility explain?

    Learn about some of the important economic insights that can be derived from applications of the law of diminishing marginal ...
  88. How safe an investment is a certificate of deposit?

    Discover certificates of deposit, their basic makeup and numerous variations, and understand why they are some of the safest ...
  89. A Detailed Look Into China's Options Market

    As the Chinese options market gradually takes shape, we provide an overview, including details of the initial phase and building ...
  90. Rise and Shine With This Pre-Market Checklist

    Your pre-market routine sets the stage for the rest of the trading day. Use this comprehensive checklist to get up to speed, ...
  91. What are the best technical indicators that complement the Relative Strength Index ...

    Learn some of the best additional technical indicators that can be used along with the relative strength index to anticipate ...
  92. What are the best technical indicators that complement the Relative Vigor Index (RVI)?

    Discover some of the best technical indicators that traders and analysts can employ to supplement the use of the relative ...
  93. Do you have to be an expert investor to trade put options?

    Learn about investing in put options and the associated risks. Explore how options can provide risk, which is precisely defined ...
  94. What is a common strategy traders implement when using the Relative Strength Index ...

    Read about some of the many uses of the Relative Strength Index (RSI), and learn about basic strategies traders implement ...
  95. How can retirees protect their wealth in a bear market?

    Look at some helpful hints about how to protect your retirement nest egg when the stock market is underperforming or the ...
  96. How do hedge funds use short selling?

    Learn how hedge funds use short selling to profit from stocks that are falling in price. Explore different analytical techniques ...
  97. How are Rising Three Methods patterns interpreted by analysts and traders?

    Understand the basics of the rising three methods candlestick pattern and how this strong continuation signal is interpreted ...
  98. How are retracement patterns interpreted by analysts and traders?

    Discover how traders and analysts interpret retracement patterns, and learn why it is important to distinguish between retracements ...
  99. What is the difference between operating cash flow and net income?

    Learn how net income is an income statement for a certain period of time, while cash flow shows inflows and outflows based ...
  100. Is short selling a form of insurance?

    Explore short selling and put options. Learn how put options may be used as insurance to protect positions, and costs associated ...
Frequently Asked Questions
  1. How are non-qualified variable annuities taxed?

    Reduce your tax bill by knowing the tax advantages and disadvantages to owning or inheriting a non-qualified variable annuity ...
  2. Do penny stocks pay dividends?

    Discover whether any penny stocks offer dividends, and learn methods investors can use to identify different dividend-paying ...
  3. Can you buy penny stocks in an IRA?

    Discover more about penny stocks, how they can be bought utilizing an individual retirement account and the risks penny stock ...
  4. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The concept of CAGR is relatively straightforward and requires only three primary inputs: an investments beginning value, ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!