EDU Articles
Popular articles
What can I do to make my portfolio grow faster?
If your portfolio isn’t growing enough for your liking, you might need to take on more risk or change your active management company. The answer is surprisingly simple: find good managers, fill your portfolio with more risky assets, and rebalance it regularly. The last point has more of a long-term focus, since harvesting and redistributing the gains of successful investments may stunt the growth, but it could also prevent you from losing as much when the winners experience a corrective downturn. Continue reading...
What are Mortgage-Backed Securities?
Mortgage-backed securities (MBS) are products that bundle mortgages together and are traded like securities for sale on the markets. Typically investment banks build these products by bundling mortgages with different interest rates and risk premiums, with the hope of the investor gaining a higher yield than can be found from traditional risk-free products, like U.S. Treasuries. Mortgage-backed securities got an infamous name during the 2008 financial crisis, as many of the packaged loans were subprime in nature. Many MBS products lost incredible value during the crisis, particularly following ruling FAS 157, which required banks to mark their value to market. Continue reading...
What is buying power?
With regards to Margin Trading, ‘Buying Power’ is a term used to describe how much additional leverage you have given the excess equity in your account. When your broker or custodian authorizes buying on margin, the purchasing power of your assets can become substantial. Instead of just owning $10,000 worth of stock, you might be able to leverage that to buy $10,000 more, therefore having $20,000 of long exposure even though you only have $10,000. Continue reading...
How to use the average directional index in trading?
Trend traders can use the Average Directional Index (ADX) technical indicator to spot and confirm the strength of a trend in a security, then combine the ADX reading with other indicators to determine whether it makes sense to trade with the trend. Click here to view the current news with the use of other Technical Indicators Technical Indicators are charting tools that appear as lines on charts, or as other kinds of graphical information, and serve as guidelines for buying and selling opportunities. Traders use technical indicators like the ADX to make predictions about future prices. They verify how well a specific indicator works for a particular security, often by calculating the odds of success under similar market conditions to guide their actions. Continue reading...
What is a support line?
A support line represents an estimation of where a price is likely to stop moving downwards, based on recent data and analysis methods. It is arrived at with different formulas for different indicator methods, but it is generally a line derived from moving averages and standard deviation which represents a lower level at which traders would expect a price to rebound back upwards. Several methods of technical and fundamental analysis plot a support line or two as part of a graphical representation of trends. Theoretically, a price will only deviate so far from its moving average before bouncing back toward the middle. Continue reading...
What is Life Expectancy?
Life Expectancy at Birth Statistics — Found Here Life expectancy may be different for each subset of the population, based on risk factors and age. It is most commonly discussed as the average for an entire population or a specific age group, without regard for specific health risks that may be present. Life expectancy may come into play in discussions of the economy, the health of a population, or for individual planning purposes. Actuarial tables with life expectancy are published by government entities and private companies. The most basic variable will be age. Continue reading...
What is the Home Affordable Refinance Program (HARP)?
In 2009 the Federal Housing Finance Agency (FHFA) commissioned the HARP program to help Americans upside-down on mortgages to get approved for mortgage refinancing. This is only available to people whose mortgages are already owned by Freddie Mae and Freddie Mac. Many Americans find themselves upside-down, or underwater, on their home mortgages, particularly after the housing bubble popped in 2008. To be underwater means that there is more owed on the loan than the home can serve as collateral for. Continue reading...
What is the Lifetime Learning Credit?
The Lifetime Learning Credit is a federal tax credit to offset expenses associated with higher education. There is no age limit and the credit can be applied to part-time student courses, even if it is only one class. The credit is for 20% of the related expenses up to a maximum of a $2,000 credit per household. Tax credits are a dollar-for-dollar reduction of taxes due. The Lifetime Learning Credit can be used for higher education expenses, regardless of the age of the student, but there is a household limit per year. 20% of educational expenses up to a household maximum of $2,000 can be applied as an income tax credit. The credit exists to make it easier for Americans to increase their skill-set and education. Continue reading...
What is Supply Chain Management(SCM) and Why is it Crucial for Modern Businesses?
Supply Chain Management (SCM) stands as the backbone of modern business, seamlessly converting raw materials into consumer-ready products. In today's competitive market, SCM's role is paramount, ensuring businesses deliver value while maintaining an edge. This guide delves deep into SCM's essence, from strategic planning and efficient sourcing to the nuances of delivery and returns. With the rise of ethical considerations and technological advancements, SCM has evolved, becoming more than just a business operation—it's a critical success driver. Dive in to unravel the intricacies of SCM and discover strategies that can elevate efficiency, reduce risks, and boost profitability in the ever-changing business landscape. Continue reading...
What Is Decentralized Finance?
DeFi, in its essence, represents a financial technology revolution built on secure distributed ledgers, much like the ones powering cryptocurrencies. This innovative approach fundamentally challenges the conventional centralized financial system, where banks and brokerages have historically held the keys to capital access and financial services. Instead, DeFi empowers individuals through peer-to-peer digital exchanges. Continue reading...