The Securities and Exchange Commission (SEC) is a cornerstone of the U.S. financial regulatory framework, established in response to the devastating stock market crash of 1929 that led to the Great Depression. This article explores the SEC's core functions, structure, historical significance, and its role in safeguarding the integrity of the U.S. securities markets. The primary mission of the SEC is to protect investors and maintain the fair and efficient operation of the securities markets. To achieve this, the SEC enforces a set of rules and regulations that promote transparency, ensure the provision of accurate information, and combat fraudulent practices. Continue reading...
The federal government annually limits how much of your earnings are subject to the Social Security tax. In 2023, this limit has been raised significantly, impacting both employees and self-employed individuals. Here's what you need to know about the 2023 Social Security tax limit and its implications. As of 2023, the Social Security tax limit stands at $160,200, a notable increase from the $147,000 limit in 2022. This limit determines the maximum amount of your earnings subject to the Social Security tax. Specifically, 6.2% of your income, up to this limit, goes toward funding Social Security benefits. Continue reading...
Purchasing power parity (PPP) is a fundamental concept in macroeconomics that allows analysts to compare economic productivity and standards of living across different countries. At its core, PPP seeks to equalize the value of a common basket of goods in various currencies, thus enabling a meaningful comparison between nations. In this article, we delve into the intricacies of PPP, how it's calculated, and its real-world applications. Continue reading...
Before you dismiss that email in your inbox with the subject line "Equifax Breach Settlement (Credit Monitoring Instructions and Activation Code)," it's important to pause and reconsider. This email is not a scam; it's a legitimate offer from Equifax as part of the final settlement for the data breach they experienced in 2017, which affected millions of individuals. In this article, we will explain how eligible claimants can benefit from four years of free credit monitoring from Experian IdentityWorks℠ and provide key information to ensure you don't fall victim to potential scams. Continue reading...
The Taiwan Stock Exchange (TAI) .TW, also known as the TWSE, has played a pivotal role in Taiwan's financial landscape since its establishment in 1961. This exchange, headquartered in Taipei, serves as the primary hub for securities trading in the region. Over the years, it has evolved to become a critical player in both domestic and international financial markets. The TWSE boasts a diverse range of listed securities, including stocks, government bonds, convertible bonds, exchange-traded funds (ETFs), call warrants, put warrants, Taiwan Depositary Receipts (TDRs), and REIT beneficiary securities. Continue reading...
The S&P/TSX Composite Index, often referred to simply as the TSX Composite, is a cornerstone of Canada's financial landscape. It's a capitalization-weighted equity index that tracks the performance of the largest companies listed on the Toronto Stock Exchange (TSX). In this article, we'll delve into the essence of this index, its constituents, and how you can invest in it. he S&P/TSX Composite Index is Canada's answer to the S&P 500 in the United States. It comprises around 230 to 250 publicly traded Canadian companies out of the approximately 1,500 listed on the TSX. Continue reading...
Microeconomics, often referred to as the study of the "small picture" in economics, is a branch of the discipline that delves into the nitty-gritty of individual and firm behavior in the market. This field is instrumental in deciphering the intricate web of choices, decisions, and incentives that guide our resource allocation, production, exchange, and consumption. At its core, microeconomics seeks to illuminate the consequences of decisions made by individuals and firms in response to changes in various factors, including incentives, prices, resources, and production methods. Continue reading...
Secure Your Retirement with Transamerica Funds 🚀 Facing low-interest rates? Discover the top 5 Transamerica funds for a prosperous retirement. From tax-free munis to high-yield bonds, we've got your diversified nest egg covered. Explore now! 💰 #RetirementPlanning #Investing Continue reading...
Unlock the secrets of Keynesian Economics! 🌍 Dive into its origins during the Great Depression and learn how it challenges traditional economic beliefs. Discover the power of government intervention and fiscal policies in stabilizing economies. Explore the debates and key concepts that shape modern economic thought. 📈 #KeynesianEconomics #EconomicStability Continue reading...
📈 DJIA vs. S&P 500: Uncover the Differences 🤝 Explore the contrasting worlds of Dow Jones Industrial Average (DJIA) & S&P 500. From history to methodology, grasp the nuances that make these indices unique. Dive into the heart of the U.S. stock market with this insightful breakdown. 💼📊 #StockMarket #Investing Continue reading...
Dive deep into the world of BRICS, the powerful coalition of emerging economies that's reshaping the global landscape. Coined by Goldman Sachs in 2001, BRICS represents Brazil, Russia, India, China, and South Africa, nations poised to redefine global economic dominance. From its inception as an analytical concept to its current role as a formidable economic alliance, BRICS stands as a testament to the shifting dynamics of global power. Discover the history, ambitions, and challenges of this influential group, and understand why it's a force to be reckoned with in the 21st century. Continue reading...
Unravel the story of Cyber Monday, the e-commerce giant that transformed online shopping. Born in 2005, this post-Thanksgiving event has grown exponentially, overshadowing even Black Friday in online sales. From its U.S. origins, Cyber Monday has expanded globally, with countries worldwide embracing the online shopping frenzy. As technology advances and consumer habits shift, Cyber Monday's influence is poised to grow even further. Dive into its history, understand its impact, and get a glimpse of what the future holds for this remarkable shopping event. Whether you're a shopper or a retailer, this is a tale of innovation and global influence you won't want to miss. Continue reading...
Unlock the secrets behind the FAANG stocks phenomenon! Dive into the world of Meta, Amazon, Apple, Netflix, and Alphabet (formerly Google) in this insightful exploration. Discover their rise, market impact, and the ongoing debate about their valuations. Are they overvalued, or is their dominance justified? Explore the allure and accessibility of these tech giants. Don't miss this captivating journey through the FAANG universe. #FAANGStocks #Investing #TechGiants Continue reading...
Explore the fascinating world of stock market history with our top 10 highest stock prices ever recorded! From Warren Buffett's Berkshire Hathaway at $445,000 to Lindt & Sprüngli's sweet success, delve into the stories behind these iconic numbers. Witness Next PLC's fashion-forward rise, NVR's housing highs, and Amazon's online dominance. Discover the tech giants Alphabet and Apple, and journey back to the early 1900s with Calumet and Hecla and General Motors. These tales offer insights into market dynamics and business resilience. Continue reading...
Unlock the secrets of Trickle-Down Economics! 📈 Explore its core theory, tax cuts, regulations, and controversies. Is it a boon or bane? Dive into the debate. 💼💰 #Economics #TrickleDown #TaxCuts Continue reading...
Unlock the world of conglomerates in this insightful exploration. Discover their formation, advantages like risk diversification and capital allocation, and challenges such as the conglomerate discount and complexity. Delve into their historical rise and contemporary examples like Reliance Industries, Meta Platforms Inc., and Amazon. Stay tuned to witness the versatility of conglomerates in the ever-changing business landscape. #Conglomerates #BusinessInsights #Diversification Continue reading...
Explore Modern Monetary Theory (MMT), a groundbreaking approach redefining government finance and money creation. MMT challenges conventional beliefs about fiscal policy, revealing how sovereign countries can create money without relying on taxes or borrowing. Delve into its origins, growth, and key principles, including its unique perspective on government debt. While MMT gains momentum, it faces substantial criticism, raising questions about its potential as a revolutionary economic paradigm. Join the ongoing debate on the future of fiscal policy and economic thought. #MMT #Economics #Finance Continue reading...
Unlock the Power of Financial Literacy! 🚀 Learn why it's crucial in today's ever-changing financial landscape. Discover key aspects, benefits, and strategies for improving your financial know-how. Start your journey to financial empowerment now! 💰 #FinancialLiteracy #Finance Continue reading...
Discover the transformative world of Buy Now, Pay Later (BNPL). A financial trend that's reshaping shopping and personal finance, BNPL offers a unique blend of convenience and flexibility. From its core principles to its global impact, this guide delves deep into the nuances of BNPL. Learn how it differs from traditional credit, its potential risks, and its place in the future of finance. Whether you're a seasoned financial expert or a curious consumer, this comprehensive guide provides insights into the BNPL revolution and its role in the ever-evolving financial landscape. Dive in and navigate the BNPL phenomenon with confidence. Continue reading...
The National Futures Association (NFA) is an independent, self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodity Futures Trading Commission (CFTC) as a registered futures association, the NFA's mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members fulfill their regulatory obligations. The NFA operates at no cost to the taxpayer and is primarily financed by membership dues, fees, and assessments paid by members and other users of the derivatives markets. Continue reading...
The Treasury yield is the interest rate that the U.S. government pays to borrow money for different lengths of time. Treasury Yield: What It Is and Factors That Affect It. When it comes to financial markets, the term "Treasury yield" is frequently bandied about, often with significant implications for investors, borrowers, and the broader economy. In this article, we'll delve into what the Treasury yield is, how it works, and the factors that influence it. Continue reading...
Journey through the fields of Monsanto's legacy, from its groundbreaking innovations to its fierce competitors. As the agricultural landscape shifts, where does this titan stand among giants like Dow Chemical and Syngenta? Unearth the story of the industry's most influential player. Dive in! Continue reading...
Unlock the intricacies of the FTSE Russell Group, the British financial titan shaping global markets. From its origins to its renowned indexes like the FTSE 100, journey through its pivotal role in the financial landscape. Continue reading...
Discover the captivating world of blue lobsters! With odds of 1 in 2 million, their rarity is undeniable. Dive into their market value, from high-end restaurant menus to collectible items. Explore the hierarchy of lobster rarity and the mystery that surrounds these unique creatures. #BlueLobsters #SeafoodRarity Continue reading...
Unlock the legacy of Jack Welch, a corporate giant. From humble beginnings to "Manager of the Century," his transformative leadership reshaped GE and corporate history. Dive into his impact and controversies in this enlightening exploration. #JackWelch #CorporateLeadership Continue reading...
Unlock the world of finance with TINA: "There is no alternative." Dive into its origins, from Herbert Spencer to Thatcher's politics, and discover its influence in investments, including its role during inflation. TINA, more than an acronym – it's a financial phenomenon. #Finance #Investments #TINA Continue reading...
Discover the Evolution of SOFR! 📈 From replacing LIBOR to its foundation in real transactions, learn how this benchmark interest rate is shaping the financial world. Explore its historical development and impacts on derivatives and loans. Stay updated in the ever-evolving finance landscape. #SOFR #FinanceEvolution Continue reading...
📈 Exploring VFIAX vs. SPY: Which is Your Ideal Investment? Discover the cost-efficiency battle between VFIAX & SPY, from fees to performance. VFIAX's rock-bottom expense ratio gives it an edge, but SPY offers tax advantages. Tailor your investment choice to your goals! 💼💰 #Investing #VFIAX #SPY Continue reading...
Unlock the secrets of economic analysis with "The Significance of Per Capita." Dive into per capita's role in understanding national and global economies. Learn how it differs from median figures, why it's vital for assessing poverty, and explore real-world examples. Discover the power of per capita in shaping informed financial decisions. #Economics #PerCapitaAnalysis Continue reading...
Unlock the secrets of Quantitative Easing (QE)! Discover how central banks use QE to supercharge economies during crises. Dive into its mechanisms, learn its impact from real-world examples, and unravel the controversies surrounding its effectiveness. Stay tuned for a deep dive into the world of monetary policy. #QEExplained #EconomicGrowth Continue reading...
Unlock the world of fiduciaries, trusted guardians of interests, ethics, and legality. Discover their diverse roles from estate management to corporate governance. Learn why the fiduciary duty sets them apart. #Finance #FiduciaryRoles Continue reading...
Dive into the world of KOSPI, the pivotal index that mirrors South Korea's financial vitality. Comparable to the U.S.'s S&P 500, KOSPI offers a panoramic view of Korea's stock market, from giants like Samsung to emerging players. Tracing its roots from the 1980s, KOSPI has weathered global crises, showcasing the resilience of the Korean economy. Whether you're an investor eyeing the Asian markets or a finance enthusiast, this deep dive into KOSPI provides a holistic understanding of South Korea's economic trajectory. Discover the intricacies, investment strategies, and the undeniable significance of KOSPI in the global financial arena. Continue reading...
Unlock the secrets of S&P 500 Futures! 📈 Discover how these vital financial instruments work, from E-minis to micro E-minis, and why they matter in today's market. Dive into the mechanics and options to gain clarity in your investment strategy. #SP500 #Investing101 Continue reading...
Unlock the secrets of the Russell 2000 Index, a vital gauge of small-cap stocks in the U.S. market. Dive into its origins, composition, and key metrics, revealing sectoral insights and specialized sub-indexes. Discover why this market cap-weighted index is a unique tool for investors seeking exposure to smaller, high-growth companies. Whether you're a mutual fund investor, ETF enthusiast, or individual investor, the Russell 2000 Index offers valuable insights and investment opportunities in this dynamic market segment. Stay ahead in the ever-evolving financial landscape with this steadfast indicator. Continue reading...
Unveil the World of Tariffs 🌍🛃 Discover the power and complexity of tariffs in international trade. From revenue generation to protecting industries and geopolitical strategies, delve into the significance and impacts of tariffs in our globalized economy. Learn about the types of tariffs, why governments impose them, and the unintended consequences they can bring. Get insights into the history and advantages/disadvantages of tariffs, shaping our economic landscape. Stay informed for a nuanced perspective on this critical trade tool. 📈🌐 #TradeTariffs #GlobalEconomy Continue reading...
Unveil the Intricacies of Taxation: From Ancient Roots to Modern Realities Discover the profound history and significance of taxation in our civilization. Explore various tax types, their purposes, and why they're vital for governments worldwide. Delve into taxation's evolution, with the United States as a captivating case study. #TaxationEssentials Continue reading...
👶 Unpacking the Baby Boomer Generation: Dive into history, characteristics, & financial impact. With 76 million born in the U.S. between 1946-1964, their influence is undeniable. Explore their economic clout, retirement challenges, and concerns over Social Security in our in-depth analysis. 💼👴 #BabyBoomers #Retirement #Economics Continue reading...
Delve into the depths of the Great Depression: an unparalleled economic calamity that reshaped the world. From the roaring twenties' climax to global ramifications and recovery efforts, uncover the intricate events and policies behind this profound downturn. 📉 #GreatDepressionExplained Continue reading...
Demonetization is a significant economic intervention that involves stripping a currency unit of its legal tender status. This process entails withdrawing the existing currency from circulation and often introducing new notes or coins. In some cases, an entire overhaul of the currency system takes place. This article delves into the concept of demonetization, its historical examples, advantages, disadvantages, and its impact on economies. Continue reading...
Economics is a branch of social science that plays a pivotal role in understanding how societies allocate their resources to meet their diverse needs and desires. This complex field encompasses a wide range of topics, from individual decision-making to global economic systems. Let's delve into the world of economics by exploring its various dimensions, types, indicators, and systems. At its core, economics revolves around the study of how societies, organizations, and individuals manage limited resources to fulfill their unlimited wants and needs. It addresses the allocation of resources for the production, distribution, and consumption of goods and services. Continue reading...
Dive into the intricacies of Japan's leading stock index, the Nikkei 225! 📈 Compare it with the Dow Jones, uncover its historical resilience, & explore ways to invest, from ETFs to individual stocks. Unlock the potential of Asia's largest economy today! 🇯🇵 #Nikkei225Guide #InvestInJapan Continue reading...
Unlock the secrets of the Nikkei 225 🇯🇵: Japan's benchmark stock index! Dive into its history, mechanics, and ties with Tokyo Stock Exchange. From post-WWII origins to today's corporate giants like Sony & Toyota, discover how the Nikkei reflects Japan's economic pulse. #NikkeiGuide Continue reading...
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. This pivotal transition from private to public status allows companies to raise equity capital from public investors, marking a significant milestone in their growth journey. Before delving into the mechanics of an IPO, it's important to understand the key steps and factors that make it a vital strategy for companies seeking capital infusion. Continue reading...
Unlock the secrets of the Nasdaq 100 Index! From tech titans like Microsoft and Apple to innovative sectors shaping our future, dive deep into the world of top companies and investment avenues. Your journey into global market performance starts here. Continue reading...
Ever wondered how your medical data remains private and secure? Dive into the world of HIPAA, the groundbreaking act that revolutionized healthcare privacy and data protection. From its inception in 1996 to its modern-day implications, discover how HIPAA shapes the healthcare landscape Continue reading...
The stock market, often seen as the heartbeat of modern finance, is a realm of endless possibilities and complexities. From its humble beginnings to the bustling global exchanges of today, it serves as a pivotal platform for capital exchange and investment. But what drives its pulse? This guide delves deep into the intricacies of the stock market, shedding light on its core functions, the dance between primary and secondary markets, and the myriad strategies employed by investors. With regulatory oversight ensuring fair play and technological advancements democratizing access, the stock market stands as a testament to economic evolution. Whether you're an aspiring investor or a seasoned trader, understanding the stock market's dynamics is crucial. Embark on a journey through the labyrinth of finance and discover the potential that lies within the world of stocks. Continue reading...
In the bustling world of startups, the term "unicorn" stands as a beacon of success, representing companies that have achieved a staggering valuation of over $1 billion. But what truly defines these high-value ventures? Beyond their impressive financial worth, unicorns symbolize innovation, growth, and a touch of rarity in the vast entrepreneurial landscape. From their intriguing origins, introduced by venture capitalist Aileen Lee, to real-world success stories like Nuro and Instacart, the unicorn phenomenon offers a captivating narrative. Whether you view them as a testament to technological advancement or question their long-term sustainability, there's no denying the impact unicorns have on modern business. Dive deeper to uncover the intricacies of these enigmatic entities, their pathways to success, and the debates they spark in the financial realm. Join us as we journey through the ever-evolving dynamics of business and finance, exploring the allure and significance of the unicorn phenomenon. Continue reading...
Explore the Hang Seng Index (HSI), Hong Kong's premier equity market benchmark. From its history to structure, understand the HSI's role as a reflection of economic vibrancy and investment trends in one of Asia's financial hubs. A vital guide for investors & market enthusiasts. Continue reading...
Explore the DAX Stock Index, a critical benchmark for the German & European economies, reflecting 80% of the Frankfurt Exchange's market cap. Learn its history, trading system, significance, and impact on industries like pharmaceuticals, finance & more. 📈🇩🇪 #DAX #StockMarket Continue reading...
Explore the Nasdaq Composite Index, a vital global stock market benchmark with over 3,700 stocks. With heavy weighting in tech and inclusion of both domestic and international companies, it's a key indicator of market health. Dive into its composition, relevance, and unique features in our detailed guide. Continue reading...
Inflation is a natural economic phenomenon characterized by the increase in the prices of goods and services over time, resulting in a decrease in the purchasing power of money. This article explores the various aspects of inflation, its causes, measurement, and effects on the economy, as well as strategies to mitigate its impact. Continue reading...
Unemployment is a term that holds significant importance in the realm of economics, serving as a critical indicator of the health and vitality of an economy. At its core, unemployment pertains to a situation in which an individual is actively seeking employment but is unable to secure a job. This article delves into the multifaceted concept of unemployment, exploring its various causes, classifications, and methods of measurement. Continue reading...
Generation X: More Than Just a Bridge Between Boomers and Millennials. Delve into the rich tapestry of Gen X's experiences, from navigating economic turbulence to pioneering work-life balance. Discover how this 'lost generation' has defied stereotypes, championed technological transformations, and emerged as the unsung heroes of the modern era. Their journey of adaptation and resilience offers invaluable insights for today's multigenerational workforce. Join us as we celebrate and rediscover the enduring legacy of Generation X. Continue reading...
Unlock the potential of ESG Investing! Discover how to align your financial goals with your values for a sustainable future. Learn to navigate the triple pillars of ESG - Environmental, Social, and Governance factors, and understand their impact on your investments. Beware of 'greenwashing' and make informed decisions. Start your responsible investment journey today! Continue reading...
The Russell 2000 index is comprised of the 2,000 smallest companies in the U.S. If you’re looking for a small cap domestic benchmark, this is a good one. Companies included in this index are reevaluated annually to make sure they can still be considered small cap companies. Since the Russell 1000 index represents 90% of the market, the Russell 2000 index represents about 10% of the market (if you are wondering whether or not there is a Russell 3000 index, the answer is yes — it is a combination of the Russell 1000 and Russell 2000 indices). Continue reading...
The U.S. currency system has witnessed a myriad of changes over the years. While we might be familiar with the current denominations, it's intriguing to look back at the discontinued and rare currencies that once played a pivotal role in the economy. Continue reading...
A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. Continue reading...
Sustainability is not a buzzword to be taken lightly. It's a necessary approach, a mindset, and a commitment to ensuring that the world we leave behind is as good as, if not better than, the one we inherited. Embracing sustainability is not just the responsibility of businesses and governments but every individual. Continue reading...
Ever felt lost in the maze of financial jargon? One term stands out as a beacon: the Annual Percentage Rate (APR). It's more than just a percentage; it's the key to understanding the true cost of borrowing or the genuine potential of an investment. Whether you're eyeing a new credit card, contemplating a loan, or exploring investment avenues, the APR serves as your financial compass. This guide unravels the intricacies of APR, distinguishing it from mere interest rates, and showcases its pivotal role in smart financial decision-making. Dive in to demystify APR and let it illuminate your path to financial wisdom and success! Continue reading...
Dive deep into the world of financial analysis with the Internal Rate of Return (IRR)! Unravel its significance in evaluating potential investments, understand its interplay with other crucial metrics, and harness its power to make informed decisions. Whether you're a seasoned investor or just starting out, this comprehensive guide on IRR will illuminate your path to financial success. Continue reading...
The S&P 500 (also known as the Standard & Poor's 500) is an index of the 500 largest and most important U.S. companies (selected by a special committee). The S&P 500 is a cap-weighted index, meaning the respective weights of companies in the index depends on market capitalization. For example, since Apple Inc. and Google are the biggest companies in the U.S., they affect movements in the S&P 500 more than a smaller company, like Visa. Continue reading...
The Dow Jones Industrial Average (DJIA) is an index comprised of 30 'significant' U.S. stocks, typically the biggest and most frequently traded. The Dow Jones Industrial Average was created in 1896 by Charles Dow, as a way to track the general trend of U.S. stocks. The index is price-weighted versus cap-weighted, meaning that if a company splits 2 for 1 its contribution to the index will drop by half (even though the company's value did not change). Continue reading...
The NASDAQ (National Association of Securities Dealers Automated Quotations) is an electronic marketplace for trading stocks, and is also used to track major Technology stocks. The NASDAQ Composite is an index of over 3,000 publicly traded companies on the NASDAQ stock market, which includes the world's biggest and most relevant technology companies - Apple, Google, Amazon, Intel, Oracle, and so on. Continue reading...
The Wilshire 5000 is about as broad as an index gets. There are over 9,000 companies traded on all of the U.S. equity markets, and the Wilshire 5000 tries to capture a broad sense for how they are performing. Though the index says 5000, there are actually just under 7,000 listed stocks in the index. It is a cap-weighted index meaning bigger stocks have more influence, and vice versa. It can be considered the broadest index of all U.S. equity markets. Continue reading...
The Russell 1000 is considered the optimal benchmark for large cap U.S. stocks. The Russell 1000 comprises over 90% of the total market capitalization of U.S. stocks, and is the go-to benchmark for large cap U.S. stocks. Like the S&P 500, the Russell 1000 is cap-weighted and will give investors a good idea of how the largest U.S. companies are performing. What is the Russell 2000 Index? What Should I Compare the Performance of My Portfolio With? Continue reading...
The “Nikkei” is the most referenced index for measuring Japanese stocks. The Nikkei 225 - often just referred to as “the Nikkei” - is an index that tracks the performance of Japan’s top 225 publicly-traded companies on the Tokyo Stock Exchange. It is to Japan what the Dow Jones Industrial Average is to the United States. The Nikkei is a price-weighted index. What is a Bear Straddle? What is Foreign Exchange? Continue reading...
The “Shanghai” is an index measuring all shares that are traded on the Shanghai Stock Exchange (China). The Shanghai Index - also referred to as the SSE Composite Index or simply “the Shanghai” - is an index measuring price changes of all A and B shares traded on China’s Shanghai Exchange. Many foreign investors have only limited access to trading shares on China’s main exchange, which makes price discrepancies likely. Continue reading...
The Hang Seng Index (HSI) is comprised of the 50 biggest stocks traded on the Hong Kong Stock Exchange. The Hong Kong stock market is much different than that of China, in that foreign investors are allowed access and the index is calculated on a free floating cap-weighted basis. It tracks the 50 biggest companies on the Hong Kong Stock Exchange, and is a better barometer for measuring overall performance of companies from the region. Continue reading...
The FTSE 100 Index - also known as the Financial Times Stock Exchange or the “Footsie” - tracks the performance of the largest 100 stocks by market capitalization traded on the London Stock Exchange. Since many of these companies are multinationals, however, the FTSE 100 does not provide the best gauge for how the UK economy is performing. The FTSE 225 is a better barometer for the UK. The FTSE 100, however, much like the S&P 500 provides a good general gauge for how stocks are performing globally. Continue reading...
The EURO STOXX 50 is an index designed to give a broad representation of stock performance across the euro zone. The EURO STOXX 50 is an index comprised of the 50 largest and most liquid stocks in the euro zone, and is designed to “provide a blue-chip representation of Super-sector leaders in the Eurozone.” The performance of the EURO STOXX 50 is generally a good indicator for how Europe’s economy is doing. Continue reading...
The MSCI World is perhaps the most well regarded index for global stocks. The MSCI World Index is a global cap-weighted index that serves as a good barometer for stock and economic performance of the world as a whole. If you are a global investor, the MSCI World makes for a very useful benchmark for performance. The index is maintained by Morgan Stanley, and has over 1,600 stocks listed in it from all developed markets in the world. It does not include emerging markets or China. Continue reading...
The MSCI ACWI is the “All Country World Index” - providing the broadest measure for global stocks. The MSCI ACWI tracks performance of stocks from all over the world - literally. It includes all markets and gives the broadest picture for how world stocks are performing. Developed markets account for some 75% of total global output, so the MSCI ACWI includes many countries that are not necessarily palatable contributors to world growth. Continue reading...
The CAC 40 is an index tracking performance of stocks in France. The CAC 40 is an index that tracks the 40 largest capitalization stocks of the 100 listed on the Euronext Paris stock exchange. It provides a good barometer for the performance and standing of the French economy. What is the DAX? What is the EURO STOXX 50? Continue reading...
The DAX is an index tracking performance of German stocks. The DAX is an index that tracks the 30 largest capitalization stocks that trade on the Frankfurt Stock Exchange in Germany. The index is capitalization weighted, but since it is so narrow it is more comparable to the Dow Jones than the S&P 500. It does not necessarily give a thorough indication of how the German economy is performing. What is the CAC 40 Index? What is the EURO STOXX 50? Continue reading...
The LIBOR is the benchmark interest rate that the world’s leading banks pay each other for short-term loans (interbank rate). It stands for ‘London Interbank Offered Rate’ and essentially serves as the benchmark that global banks use to determine the interest cost of short-term loans. The rate then becomes useful in determining - and as a reference point - for government bonds, mortgages, student loans, credit cards, and derivatives. Continue reading...
A stands for Mergers and Acquisitions, and refers to the consolidation of companies or assets for strategic purposes. It does not necessarily have to imply that one company wholly takes over another — there are a number of different transactions that can fall under the M&A umbrella, which can include purchase of key assets or management acquisitions. In nearly all cases, however, there are two companies involved - the buyer of capital and the seller. Continue reading...
The NASD stands for the National Association of Securities Dealers. It was a self-regulated, regulatory body that oversaw the NASDAQ market to ensure proper and non-fraudulent operations. In 2007, the NASD merged with the New York Stock Exchanges regulatory body to form the Financial Industry Regulatory Authority, or FINRA. What is Minimum Margin? What is the SEC? Continue reading...
REPO is shorthand for Repurchase Agreement. It is a money-market practice where two entities agree to buy/sell government securities overnight and reverse the transaction the next day for the sake of providing the selling entity with short-term cash. Repurchase Agreements provide the selling party with short term liquidity, and are considered a money-market instrument. A third party usually acts as a clearing agent. Continue reading...
The Securities and Exchange Commission (SEC) is a governmental regulatory agency established by Congress which polices the practices of the securities industry. Since 1934, the SEC's mission has been to protect investors and the market from malfeasance. FINRA (the 2007 successor to the NASD which was formed in 1939) is a self-regulatory organization in the industry which seeks to keep member firms more than compliant with SEC regulations. Continue reading...
SIBOR is the primary interbank loan rate quoted in the Asian markets. SIBOR stands for the Singapore Interbank Offered Rate, and is a regional equivalent of the LIBOR, or London Interbank Offered Rate. It serves as a reference rate and is a composite of the reported rates offered by member banks of the Association of Banks in Singapore (ABS) for the lending of unsecured funds over several time frames. Continue reading...
SPDRs (Spiders) are index ETF shares that track the S&P 500, or could refer to other similar ETFs tracking other indices. The SPDR is the longest standing ETF (exchange traded fund), and has existed since 1993. Unlike index mutual funds that track the S&P, ETFs can trade intraday, can be sold short, and bought on margin. There are other SPDR ETFs that are spin-offs, and using “SPDRs” in the plural might refer to these as well. SPDRs are managed by State Street Global Advisors, and the S&P 500 SPDR is listed on the NYSE under the ticker symbol SPY. Continue reading...
A swap is an over-the-counter agreement between institutions to "swap" one thing for another, usually the cash flow related to interest-bearing instruments. Given the negotiable and over-the-counter nature of swaps, there are many permutations and manifestations of this concept. The most common is the interest rate swap, in which the counter-parties agree to pay the interest due on principal amounts which are not exchanged. Continue reading...
Treasury Inflation Protected Securities (TIPS) are coupon-paying treasuries issued by the US Government whose principal amount adjusts with inflation. When a consumer buys Treasury Inflation Protected Securities (TIPS), they experience a few benefits when compared to other investment options. One benefit is that the security is backed by the full faith and credit of the US Government. Another benefit is that the principal amount adjusts automatically for inflation with the Consumer Price Index. Continue reading...
VIX is the ticker of the volatility index of the S&P 500. The Chicago Board Options Exchange (CBOE) Volatility Index projects the volatility of the S&P 500 going forward by creating a composite of the volatility priced-in (implied) on various S&P 500 options. Since it is created using the prices of options, it serves as a gauge of market sentiment, and is often called the "fear gauge" since it will spike when the market plunges. Continue reading...
One of the largest and most influential groups in the country is the American Association of Retired Persons, or AARP. It is a nonprofit organization whose mission is the improvement of the quality of life for its members. The group is one of the largest entities in the country, and it’s free monthly magazine has a higher circulation than any other publication in the United States. Its membership consists of over 40 million American citizens over the age of 50. Members receive many benefits each year, including many discounts and coupons on food, lodging, travel, and so on, for dues around $20 per person per year. Continue reading...
Most people recognize this as a “routing number.” The American Bankers Association (ABA) assigns a number to each banking institution registered with them, for the purposes of electronic transfers; this is commonly known as a routing number, and officially an RTN, or Routing Transit Number. Consumers and bank clients are familiar with this number as the 9-digit number that appears beside their account number on the bottom of their personal checks. Every client with a particular bank will have have the same routing number on their checks. Continue reading...
The Chicago Mercantile Exchange, now known as the CME group, is the largest derivatives exchange in the world, and one of the oldest. It has historically served as a major international exchange for commodities futures and options on those futures, along with the Chicago Board of Trade and the New York Mercantile Exchange, which are now part of the CME Group. The CME Group is now comprised of what used to be several futures exchanges: CME, the CBOT, and the NYMEX. Historically these markets traded in traditional commodities and their futures, and Chicago was the most likely location for such an exchange, being at the hub of the Midwest. Continue reading...