What Kinds of ETFs Exist?
There are many ETFs on the market and more popping up all the time. Currently, there are over 900 ETFs available on the market, covering basically every market sector, industry, commodity, asset class, country, style of investing on the stock market. The amount of money invested in ETFs has increased exponentially over the last decade and is likely to continue in that direction. Many more ETFs are introduced to the market every year, many with different and creative strategies that have never been available in a single investment product before. These might use Forex, rate swaps, CMOs, futures, options, short-selling, and other advanced or institutional trading strategies, to create a new kind of position in a sector, industry, or geography to which the investor wants to gain exposure. Continue reading...
How do I get IPO shares?
Participating in an IPO is generally limited to institutional investors. However, if you are a high net worth client at a brokerage firm that has access to the IPO, you may be able to purchase some shares. First, you need to know that investing in IPOs is considered speculative and only suitable for experienced investors will substantial assets. If you meet the criteria that your brokerage has for allowing IPO trading, which may include a minimum account balance of $250,000 or so, you may be allowed to submit an Indication of Interest (IOI), which is a document used to request shares in the IPO. Continue reading...
What are the Contribution Deadlines for My Self-Employed 401(k)?
Contribution deadlines vary depending on whether it is a salary deferral or contribution based on profits generated. The contributions to a Self-Employed 401(k)s consist of two parts, and the deadlines for these parts are different. The contribution which you as an employee make on your own behalf, which is considered a salary deferral, is 15 days after the close of your fiscal tax year. If you have a regular fiscal year, which ends on December 31, the contribution deadline is January 15th. These contributions include both regular salary deferrals and catch-up contributions. Continue reading...
What is the MSCI World?
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...
What is Dividend Frequency?
Dividends are paid at certain intervals by companies who pay them. This might be quarterly, annually, or semi-annually. The dividend rate that investors should keep up with is the annualized amount, but there is a lot to be said for quarterly or monthly payments, particularly for those actually using dividends as income, but even if you are just reinvesting. Higher dividend payment frequency means higher liquidity, more control, and probably higher returns in your portfolio. Continue reading...
What is technical analysis in trading?
Technical analysis is a method of evaluating the worth and probable future direction of security prices using charts and data concerning prices and volume. This is the counterpart to fundamental analysis, which looks at the physical operations of a company and their place in the market to determine value. Those who practice technical analysis are sometimes called “quants” or chartists because they believe that the most important information about a security will be found in the data on the price, volume, and the moving averages and volatility associated with them. Continue reading...
What is Cash and Cash Equivalents?
Cash and cash equivalents are negotiable instruments which have a stable value and are highly liquid. Cash and Cash Equivalents is a phrase used often in the financial world. Generally money market accounts are the most used cash equivalent. They are invested in currency, and their goal is to preserve the value of the the investor’s dollars. Money market accounts are basically completely liquid, and investors can even write checks and make ATM withdrawals from their money market accounts. Continue reading...
What is Revenue?
Revenue is a word describing any cash flowing into a business as a result of goods and services rendered. It is sometimes call gross income, and is a representation of income before all expenses. It is notable, though, that revenue only includes receivables in the current period. The Accounts Receivable on the company’ s books may include the entire cost of the goods or services rendered during that period, but the Revenue should generally only reflect the amount that is paid to the company in the current year. Continue reading...
What is a foreign fund?
A foreign fund is a mutual fund that invests solely in companies abroad and does not invest in corporations owned in the US. Owning foreign companies can be a very good diversification strategy and is considered a core holding in the portfolio of most investors. Foreign exposure means that if the US economy hits a rough patch, you may have a hedge in the foreign fund if the companies or markets in other parts of the world are not entirely correlated. Continue reading...
What are Pivot Points?
Pivot points are quick-reference tools used in intra-day trading that give the trader benchmarks and perspective while short-term price movements happen. Pivot points are set by taking the high, low, and close price levels of a stock market index or individual security for the previous day or week and basing support and resistance levels from there by multiplying those numbers by simple factors. These multiple might be very simple, such as 2x or 3x, or using Fibonacci numbers, which is still a simple calculation if you have the Fibonacci numbers. These are meant to be very quickly generated on a piece of scratch paper, and because of their simplicity, they were a favorite among floor traders. Continue reading...