Investing in Bonds : Corporate, Treasury or Municipal?
When you buy a bond, you are actually loaning your money to the organization that issued the bond. That is why bonds are often called "debt instruments." The principal (the "face value" of the bond) is repaid on the maturity date. In the meantime, you are paid a set amount of interest, usually every six months. This interest is called the "coupon" or "coupon rate." It's called that because bonds used to come with little coupons attached that you would cut off and send in twice a year to receive the interest payment. Nowadays, the coupon rate is nothing more than the annual interest rate.
Small Cap Stocks : Big Perks
Investing in small cap stocks can actually have big benefits. In fact, some of the benefits of small cap stock trading cannot be touched by large cap investors.
Dow Jones Industrial Average : How’s the Stock Market Doing?
If you have ever listened to a business report on the news, you have heard of the Dow Jones Industrial Average. Established in 1896 by Charles Dow, it’s an icon in the trading industry. But what exactly does it mean?
Portfolio Diversification : How to Make Your Money Work for You
It is difficult to build something without having a solid foundation to work on. Choosing to build a home atop a sink hole is as apt to failure as building a town without a fire station. In order to move on to bigger and better things, you must first make sure that what you’ve already worked on is sturdy on its own. The same goes with your stock portfolio. If you want to invest effectively, you have to start on the right foot. This is why it’s important to start off with a diversified portfolio.
Investing in Stocks : What Is the VIX Index and Why Should I Pay Attention To It?
The VIX Index is the Chicago Board Options Exchange future volatility measure for the S&P 500. There are three different types of volatility indexes - the VXN for the Nasdaq 100, the VXD for the Dow Jones Industrial Average, and the VIX for the S&P 500. This volatility index shows the market’s expectations for the next 30 days and is calculated from both calls and puts.
