Investing Archive

Mutual Funds the Basics

Mutual Funds are somewhat self-explanatory. They are investment companies that make investments on behalf of individual investors. Money managers are paid to make daily decisions on which securities best suit the purpose of the fund. …

How Annuities Work

The global financial crisis left many self-funded retirees and investors scratching their heads.  Share prices and company dividends plummeted, property prices went into free-fall, and the collapse of banks and other financial institutions left many investors …

Guide to Mutual Funds

Guide to Mutual Funds Market Timing System A mutual fund market-timing system is one in which an investor tries to take advantage of short-term market or sector movements by buying or selling focused mutual funds …

Day Trader Stockbroker

It is a myth that a significant amount of capital is required to commence trading as a day trader.  It is possible to start with a minimum of $500.  You do no not need to …

Oil Based Economy

It turns out  that when President Barack Hussein Obama banned oil drilling, he made billionaire George Soros a lot of money.  George Soros is invested in a Brazilian oil company called Petrobas that will get …

What is a Mutual Fund

A mutual fund is a pool of money provided by individual investors, companies, and other organizations. A mutual fund, or portfolio manager is hired to invest this money (the fund’s assets) in stocks, bonds or …

How to Trade Currencies

Currency trading is a relatively new option for non-professional investors.  For years these financial choices have been the domain of Wall Street currency desks who could handle the large amount of money trading every day.  …

Why Companies Issue Stock Options

Companies issue stock options as a way to simultaneously reward privileged employees (like executives), and also to give them an incentive to continue their successful performance in the future. Stock options allow people to purchase …

The Case against Managed Mutual Funds

Mutual Fund companies caught with their hands in the cookie jar? A recent article in the Journal of Indexes (July/August 2007, Hidden Fees Exposed!) cautioned that Mutual Funds were thought to be charging “Hidden Fees”. …

Janus Forty Fund Potential

JANUS FORTY A FUND For a large growth fund with net assets as big as $5.5 billion (as on July 31, 2009), the Janus Forty A Fund (Symbol-JDCAX) is remarkably steady, the jolts of the …

Where to Buy Mutual Funds

There are many sources for mutual funds. You can buy them through most stock brokerages, including on-line brokers. You can buy them through banks and other financial institutions. Some banks have their own funds. There …

When to Sell a Mutual Fund

Determining when to sell a mutual fund is much different than when you would sell a standard stock. While many people believe that the best time to sell a mutual fund is when it stops …

How to Invest with little or no Money

Without exception, people would love to get started with investing. It’s the road for the “common” man to become wealthy, as investing allows a person to build wealth slowly and consistently over time. However, there …

What WACC is and how to calculate it

The weighted average cost of capital (WACC) is a measure of proportional capital cost to businesses and corporations seeking an assessment of multiple forms of capital infusion. For example, if company A issues corporate bonds, …

Fun way to Teach Children to Save Money

Teaching a child that saving for the future can be very difficult. I remember growing up and constantly arguing with my parents about saving my money. As a child, I did not understand why I …

Why Bonds Fluctuate in value

Like many other investments bonds fluctuate in value. There are four things that make a bond price fluctuate: interest rate, credit risk, liquidity risk, and prepayment risk. The number one factor in bond value fluctuation …

Causes of Bond Devaluation

While bonds are often thought of as a safe investment that provides shelter from the turbulence of the stock market, they can also experience price fluctuations.  Understanding the influences on bond price and bond rating …

Investing the Long Put Option

Many traders buy and hold stocks through their respective ups and downs. Only ever making money on the way up and getting nervous when they go down. There is a way to protect your stock. …

Comparing Bonds vs Stock as an Investment

A big difference between bonds and stocks as investments are that bonds are considered ‘bear’ investments and stocks are considered ‘bullish’. In other words, when the stock market is being flailed and vulnerable to 10-20% …

The different Ways to Invest your Money

Overall, there are various ways that capital can be invested. Various investment options come in different shapes and sizes, with some providing guaranteed returns while others do not. These are a few of the different …

Investing what are Bond Funds

Basic Bond Fund Information: A bond fund is sometimes referred to as an income fund. These bonds are set up on a fixed income therefore explaining the alternate name. Bond funds are commonly used to …