Introduction There are 2 main ways (on the investor end) that people make money with stocks and I decided to list them out for you below. Those ways are via appreciation/depreciation or by dividends. Appreciation/Depreciation Whether it’s directly or indirectly (though … Continue reading
Yearly Archives: 2016
What is Present Value/Future Value? With any asset, it will get more or less valuable over time (due to appreciation/depreciation and/or cash flow). Present Value is the value of that asset today. If you put 1000 dollars into an investment … Continue reading
What is Price? Price is how much it costs to purchase a good/service. Importance of Price Holding supply equal, price is a measurement of demand. The higher the demand, the higher the price is bid up. When the price increases, … Continue reading
What is Skepticism? Skepticism is when someone doesn’t take an assertion at face value. Adherents demand a higher standard of proof. They don’t deny facts but demand evidence before they accept something as a fact. What is the Application … Continue reading
Overview Free trade and protectionism are 2 approaches that a country can take in regards to trade. It details the ability for people to buy products and services from other countries and/or sell products and services to other countries. It … Continue reading
My Message to You I write these posts to help everyone and I care deeply about advancing financial education so people can make more informed choices. So I ask everyone to send me any questions they have. I want the … Continue reading
The Dow was down this month by 166 points in total. Lots of back and forth excitement. Lots of the “world is ending” election news. In the end, the market was essentially breakeven. And the TV pundits are still exaggerating … Continue reading
In Short As I mentioned in an earlier post, people should focus on what they are best at, and buy/trade for everything else they need. Specialization increases productive capacity and the total sum of knowledge of a community. Example 1 … Continue reading
In Short Compensating Differentials are a fancy way of saying that people are not willing to do horrible jobs unless they are paid more. Wages vs. Comfort If we take 2 jobs that require equal skill, on average the total … Continue reading
In Short A competitive market has many companies within it, with the price charged equal to the marginal cost. A monopolistic market has one company in it, with the price above its marginal cost. Competitive Market The whole idea of … Continue reading