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What is the Russell 2000 Index?

The Russell 2000 index is comprised of the 2,000 smallest companies in the U.S. If youโ€™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 โ€” it is a combination of the Russell 1000 and Russell 2000 indices). Continue reading...

What is the Russell 1000?

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...

What is a market index?

Market indexes attempt to give an overall picture of the behavior of the market by tracking the performance of a representative sample of stocks. Different indexes have different focuses. The Russell 3000 samples more of the smaller companies than the S&P 500. Index mutual funds and ETFs track specific indexes but, as youโ€™ll notice in their disclosures, it is impossible to invest directly in an index; they only follow the index by investing in as many of the companies as possible and minimizing lag as much as they can. Indexes give numerical values for the progressive fluctuations in the price action for specific sets of stocks. Continue reading...

What is the definition of the Russell 2000 Index?

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...

What is the Financial Times Stock Exchange Group (FTSE)?

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...

What are the three most prominent U.S. stock market indexes?

Unlock the Power of Stock Market Indexes! ๐Ÿ“ˆ Explore the significance of S&P 500, DJIA, and Nasdaq Composite in guiding investment decisions. Discover diverse investment opportunities and smart beta strategies. Stay ahead in the dynamic financial landscape. #Investing #StockMarket Continue reading...

What Are Small-Cap Stocks, and Are They a Good Investment?

Small-cap stocks, often considered the hidden gems of the market, have gained attention for their growth potential and dynamic nature. These stocks represent companies with a market capitalization generally ranging from $300 million to $2 billion, offering unique opportunities for investors. But with these opportunities come higher risks and volatility. Here's an in-depth look at what small-cap stocks are, their characteristics, potential advantages, and considerations for investors. Continue reading...

What Is a Mid-Cap?

In the vast world of finance and investing, understanding the various categories of stocks and how they're tracked can be a crucial aspect of building a diversified portfolio. One of the key categories, often underutilized by investors, is mid-cap stocks. But what exactly is a mid-cap stock, and how can you track them? In this article, we'll explore the world of mid-cap stocks and the indexes designed to monitor them. Continue reading...

What is currency convertibility?

Currencies may work fine in a particular country or region, but it may happen that certain currencies are not convertible into other currencies or gold. Sometimes this is by choice, such as was formerly the case with closed economies like the Peopleโ€™s Republic of China, Soviet Russia, Cuba, and others. Most currencies are convertible into other currencies. Banks, at least the central banks of countries, tend to have reserves of most foreign currencies with their citizens do business. Continue reading...

What is a currency symbol?

Currency symbols are characters written or typed in a specific arrangement alongside the numerical values of a currency amount, to denote the kind of currency in which the amount of money is held. An example would be the dollar sign ($), which is placed at the beginning of the numbers which describe the amount of currency in question, despite the fact that in most languages the word โ€œdollarsโ€ follows the numbers when spoken. Many currencies have their own symbol but not necessarily all do. Continue reading...

What should I compare the performance of my portfolio with?

Benchmark indices are used to gauge the performance of an investment portfolio. In order to evaluate the performance of your portfolio for any given period of time, find the corresponding index for each investment in your portfolio. For example, for US Equities, use the S&P 500 For your Small Cap portion, use the Russell 2000 Index, etc. You can also compute weighted index blends that correspond to your index allocation (e.g., 40% MSCI / 60% S&P). If your manager or the portion of your portfolio significantly (by more than a couple percent) underperforms the corresponding index, be sure to carefully monitor this manager or portion of your portfolio. Continue reading...

Which Mid-Cap Index Should You Choose: A Comparative Analysis?

A mid-cap index provides a benchmark for investors interested in gauging the relative performance of mid-cap stocks or investment vehicles that hold mid-cap stocks, such as exchange-traded funds (ETFs) and mutual funds. A mid-cap stock is defined as any equity security whose market capitalization, or market value generally falls between $2 billion and $10 billion. Some investment companies put the mid-cap range at about $3 billion to $10 billion. Continue reading...

What is the Coefficient of Variation (CV) and What Does It Tell Us About Data Dispersion?

Dive into the world of statistics with our comprehensive guide on the co-efficient of variation (CV). This pivotal measure helps you understand data dispersion and make informed decisions across numerous fields. Whether you're a financial analyst gauging investment risks or a researcher comparing experimental data, CV is your go-to metric for insightful analysis. With our guide, you'll learn to calculate CV with ease and apply it effectively, ensuring your data speaks volumes. Embrace the power of CV and elevate your analytical prowess to new heights. Continue reading...

What are the advantages of maintaining long-term stock investments?

Discover the benefits of long-term stock investments: ๐Ÿ“ˆ Higher returns over time ๐ŸŒ Diversification with emerging markets and caps ๐Ÿ“‰ Weathering market fluctuations ๐Ÿ’ก Avoid emotional decisions ๐Ÿ“Š Lower taxes and costs ๐Ÿ’ฐ Harness the power of compounding with dividend stocks. #InvestingTips Continue reading...

What is Publication 503, Child and Dependent Care Expenses?

IRS Link to Publication โ€” Found Here Publication 503 covers tax deductions and filing guides for individuals who pay for childcare. It does not address the employer side of things, for those who provide childcare as a fringe benefit, which is covered in IRS 15-b. Tax deductions are available for parents who have to pay for child-care so that they can work at a job and earn income. Publication 503 describes the circumstances under which this type of deduction is allowed and the filing requirements for it. Continue reading...

Week (March 18 - 22) in Review: Financial Leaders

Dive into the heart of recent market dynamics with our latest analysis covering March 18-22. Witness the contrasting landscapes as commodities and certain indexes celebrate gains, while the cryptocurrency sphere navigates through turbulence. Continue reading...

What is the Wilshire 5000 Index?

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...

Which Small-Cap Stocks Are Topping the Charts in June 2023?

As of June 2023, the small-cap stock landscape showcases some remarkable performers amidst a varied market. Notably, stocks like Prometheus Biosciences Inc., TG Therapeutics Inc., and Akero Therapeutics Inc. have surged over 400% in the past year, illustrating significant market potential. Meanwhile, the Russell 2000 Index remains nearly unchanged, underscoring the unique opportunities within this segment. Continue reading...

What are the Risks Associated With Stocks?

Stocks are inherently risky, and an investor has risk of capital loss. As with most things in life, no risk yields no return. Theoretically, the greater the risk, the greater the potential return. A new company which has not established itself yet will have a decent chance of crashing and an investor can lose all invested capital. But โ€” what if it takes off? Your potential gains in such a situation are potentially vast. There is a point when the rate of increased return per degree of risk begins to slow down. Continue reading...

What are 'Liar Loans'?

Liar loans are a term that refers to loans or mortgages that were granted with little or no request for qualification documentation, such as proof of income. On certain low-documentation loan programs, such as stated income/stated asset (SISA) loans, income and assets are simply stated on the loan application. Then there are still other loan programs known as no income/no asset (NINA) loans, where the applicant essentially does not have to provide any proof of eligibility. These types of loans opened the door for fraudulent lending practices, which ultimately bankrupted several mortgage companies during the 2008 financial crisis. Continue reading...