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Definition Opportunity Cost is the value of the best alternative choice that you decide to forego. Example 1 You are trying to decide whether or not to wake up early tomorrow to go for a run or to sleep in. … Continue reading
Monthly Archives: July 2016
What are Taxes? Think of the government as a giant company. By living in the country, we are in essence agreeing to buy all of the goods and services that the company (the government) provides. The taxes are the payment. … Continue reading
Update I added a new definition to the e-book and fixed a few typos. Download it for free here. Intention My intention with the e-book was always to increase knowledge in other people and provide information that I think they will … Continue reading
Overview A financial statement is a report that presents the financial facts about a company. There are 3 main types. Those types are a balance sheet, an income statement, and a statement of cash flows. You can also prepare financial … Continue reading
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
In Short Risk is the possibility that at a particular moment in time, you won’t have enough money to pay for whatever you need to pay for. Fluctuation is Noise The market fluctuates up and down like a roller coaster. … Continue reading
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
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
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
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