Investing News

The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.

Value investing is an investment strategy that involves selecting stocks that are trading for less than their intrinsic or book value. Value investors actively seek out stocks that the stock market is undervaluing. They believe the market sometimes overreacts, resulting in stock price movements that do not accurately reflect a company's long-term fundamentals. This overreaction offers an opportunity to buy stocks at discounted prices.

BlackRock, the worlds largest investment corporation has created an operating system called Aladdin which stands for Asset, Liability, and Debt and Derivative Investment Network. It is an electronic system that handles about $21 trillion in assets and is a platform that helps in decision making, effective risk management and efficient trading.

The index is more commonly known by its ticker symbol and is often referred to as “the VIX.” It was created by the Chicago Board Options Exchange (CBOE). It is an important index in the world of trading and investment because it provides a quantifiable measure of volatility, market risk, and investors’ sentiments.

The two terms are often used to describe board members of the Federal Reserve System. The terms refer to different viewpoints on the way monetary policy should influence the economy. Hawks are primarily concerned about limiting inflation. They trend toward raising interest rates to restrict the supply of money. Doves, on the other hand, typically try to get interest rates to go lower. They want an increase in the money supply, more economic growth and, particularly, more jobs.

Inflation is the decline of purchasing power of a currency over time. The rate at which the value of the currency is falling and the general level of prices for goods and services is rising.

A Roth IRA (individual retirement account) is an account that allows qualified withdrawals on a tax-free basis provided certain conditions are met. Roth IRAs are funded with after-tax dollars which means the contributions are not tax-deductible. However, once you start withdrawing funds, the money is tax-free.

The Income Statement is one of the 3 most important financial statements used in reporting a company's financial performance (the other 2 financial statements are the Balance Sheet and the Cash Flow Statement). Also known as the profit and loss statement, the Income Statement primarily focuses on the company’s revenues and expenses during a particular period of time.

An ETF (Exchange Traded Fund) is a security that tracks things like indices, industry sectors, commodities, or specific investment strategies, and can be bought or sold the same as a regular stock. An ETF is called an exchange traded fund because it's traded on an exchange just like a stock.

An OCO order (one-cancels-the-other) is a pair of conditional orders stating that if one order is executed, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on a brokerage trading platform. When either the stop or limit order price is reached the order is executed and the other order is automatically canceled. Traders use OCO orders to reduce risk, to exit the market, and to save time.

Fundamental analysis is a method of measuring a stocks value by studying its financial data. Fundamental analysis looks at the things that can affect the stocks value, from macroeconomic factors such as the economy and the industry, to microeconomic factors like sales, cash flow, debt, and the company's management.

Technical analysis is a trading discipline used to evaluate investments and assess investing opportunities by analyzing chart and pattern trends from trading activity, such as price movement and volume. Technical analysts believe past trading activity can be a valuable indicator of a stock's future price direction.

This month we take a look at 2 major cryptocurrency trading platforms, Kraken and Coinbase. These are two of the most high-profile crypto exchange platforms in the world.

Cryptocurrencies are virtual currencies that are secured with cryptography, which makes it nearly impossible to counterfeit. Most cryptocurrencies are decentralized networks based on blockchain technology. Cryptocurrencies are typically not issued by a central bank, which means they are not impacted by government involvement.

A margin account is a brokerage account where the broker loans the customer cash to purchase securities so that the customer does not need to put up the entire value of a trade.

Short selling is when an investor borrows shares of a company’s stock from a brokerage with the intention of buying it back after the company’s share price has fallen.

A short squeeze refers to a significant increase in a stocks share price. This increase forces short sellers to close their short positions which in turn drives the stocks share price even higher.