How Do Brokerage Houses Make Money?

In Short There are 2 main ways that a brokerage house makes money. Those ways are through commissions and interest on cash balances. Commissions This type is what most people automatically think of when it comes to this topic. Every time … Continue reading

I Just Uploaded a free E-Book

I wanted to let everyone know that I just uploaded a free e-book. To download a copy of “A Simple Overview of Financial Planning. Book 1: Market Overview”, please click this link or go to the menu on the top … Continue reading

Quick Definitions (What is a Commodity, What is a Stock Index, What is Market Capitalization?)

What is a Commodity? A commodity as it is defined in the financial markets is a physical good that is considered the same as all other goods of that same commodity classification. For example: cattle is a commodity. One cow … Continue reading

Is it a Good Idea to Buy Stock in a Company You Work For?

Short Answer Buying stock in the company you work for is usually but not always a bad idea. Emotional Objectivity You have to evaluate the prospects/value of the company. If you work there, you will be sucked up in the … Continue reading

What is Rebalancing?

Definition Rebalancing is simply buying and selling things in a portfolio so a particular asset class is a previously agreed upon percentage of the portfolio. For Example A client (with a $100,000 portfolio) told their advisor they want their portfolio … Continue reading