In Short Currency is a medium of exchange that improves the efficiency of transactions. An Improvement Over Barter Before currency existed, people obtained what they needed from others via barter. Basically if I have a chicken and you have a … Continue reading
In Short I don’t think you should be worried. I think it’s a temporary fear pit and it will quickly stabilize. Nothing Has Actually Happened Yet The market declined on the fear of an interest rate hike, but no hike … Continue reading
In Short All equity financing involves purchasing ownership of a company. The only difference is where the company is offered for sale. Public Equity This is the area that I focus in. It is companies (stocks) that are offered for … Continue reading
In Short It is the central bank of the United States. It controls the amount of currency within the economy via open market operations, inter-bank loan rates (Discount Rate), and the banking reserve requirements. All of these things control how … Continue reading
In Short When someone buys or sells stocks, mutual funds, ETFs, etc. they have the choice to use multiple types of orders. Market Order The order is done immediately at the current security price. Market orders have to pay the … Continue reading
The Dow was down this month. It started at 18,432.24 and ended at 18,400.88. A very small loss I admit, but I have a point to make. Every one of your portfolios was up, but the Dow was down. How … Continue reading
In Short When a currency becomes less valuable relative to another currency. Explanation The value of all currencies (US Dollar, Euro, Pound, etc.) are defined relative to each other. For example: right now one US dollar is worth about .762 … Continue reading
Risk Vs. Return Before that question can be answered, it is important to understand the relationship between risk and return. In the financial/investing world there is a direct relationship between the two. For example: a treasury bond is very low … Continue reading
Definition When you buy a security there is time between when you buy the security and when you pay for that security. The date you buy is the buy date. The date you pay the money is the settlement date. … Continue reading
In Short An ETF (Exchange Traded Fund) is a basket of securities that attempts to duplicate the performance of a multiple of an index. See here for the definition of a stock index. There are also commodity indexes. Their Benefit … Continue reading