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What is a Distributed Ledger?
A distributed ledger is a records system in which the same information is held redundantly across many nodes in a network, and is essential to blockchain technology. Centralized databases used to be the primary way that important records of transaction histories and so forth were held. Databases validate the identity of those requesting access to the records by asking for and retaining personally identifying information. If that office building were to lose power, was hacked, or was destroyed, it is possible for all of the information to be lost or given over to hands of bad actors. Even with cloud storage backups, the security and financial risk to any one of these storage depositories remain a problem. Continue reading...
Can Blockchains Reduce Fraud and Failed Payments?
Blockchains can validate, clear, and document transfers of value much faster and more securely than traditional methods. Blockchains offer an extremely efficient and reliable means of processing transactions of any size in a way that reduced the likelihood of fraud and failed payments. If a cryptocurrency wallet says that there is a specific balance present in a specific wallet, then that balance is there; it can be validated using the transaction record held on the thousands of computers on a b... Continue reading...
What are Core Mutual Funds?
Core mutual funds represent the middle ground between Value and Growth, but are not the same as Blend funds. Core Mutual Funds are in between Growth and Value funds. In other words, companies in their portfolio have Price to Earnings ratios which are higher than those of Value companies but lower than those of Growth companies. This category is essentially based on the 9-box Morningstar categorization system, which separates equity funds into Small, Mid and Large Cap on the vertical axis and Value, Core, and Growth on the horizontal axis. Continue reading...
What are Value Mutual Funds?
Value mutual funds are those that invest in companies with strong fundamentals and steady earnings histories. A Value Mutual Fund’s portfolio will typically consist of stocks that are considered to be undervalued and expected to pay out dividends. The stocks held in such funds usually have P/E ratios in-line with or lower than the S&P 500 index, and such companies are usually older and well-established. Continue reading...
Bitcoin's Taproot Upgrade: What Are the Key Takeaways?
In the fast-paced world of cryptocurrencies, innovation is constant. Bitcoin, the pioneer of the digital currency realm, has recently undergone its most significant upgrade in the last four years – the Taproot upgrade. This upgrade holds the promise of transforming Bitcoin's functionality, transaction efficiency, privacy, and even its role in the world of decentralized finance (DeFi). In this article, we'll explore what Taproot is and why it's making waves in the crypto community. Continue reading...
What is the Difference Between a Blockchain and a Database?
Blockchains use distributed ledgers, which are decentralized and do not rely on centralized databases. Databases are the traditional way to store information and to keep it secure. When companies store information about their customers, or about the business itself, it is usually kept in a database connected to servers that handle requests for the information. The design for such a system tends to look like a wagon wheel: a central hub with numerous spokes connecting it to the outer wheel. Layers of security are heaped onto centralized servers and permit access to various levels of information is given to specific users. Continue reading...
What are Blend Mutual Funds?
Blend mutual funds offer exposure to both growth stocks and value stocks. Blend mutual funds seek to capture the upside of growth stocks as well as the dividend yield of value stocks. P/E ratios can be used to identify a growth or value stock: where a P/E over about 25 is a growth stock and under about 15 is a value stock. Blend funds are generally considered a good core asset, but are not the same thing as a Core Fund. Continue reading...
How Do You Understand Leases? A Comprehensive Guide
Ever wondered about the intricacies of leases and their ripple effects on the economy and society? Dive into our comprehensive guide to uncover the key aspects of leases and their broader implications in the world of real estate. Discover more than just a contract! Continue reading...
Navigating Investment Diversification: Blend or Balanced Funds?
Investing can be as much about managing risks as it is about targeting returns. Two popular vehicles for diversification and risk management are blend funds and balanced funds. While they may sound similar, they serve different purposes in an investor's portfolio. Understanding these differences is critical for making informed investment decisions. Continue reading...
What is Form 8282: Donee Information Return?
IRS Link to Form — Found Here Non-cash contributions to a charity which are valued at over $5,000 must be reported on a Form 8282 by the organization receiving the donation. The organization does not have to include publicly traded securities on this form, or items used in the course of the organization’s mission, such as medical supplies. Non-profit organizations must report non-cash contributions that they receive from donors if the value of the item is over $5,000. These items will also need to be reported by the donor or form 8283, Section B. Continue reading...
How Can I Establish a SIMPLE IRA?
A SIMPLE IRA must be established by an employer with fewer than 100 employees. An employer can establish a SIMPLE IRA if they have no more than 100 employees who earned $5,000 or more during the preceding calendar year. The employer cannot have any other type of qualified retirement plan going while a SIMPLE IRA is in effect. SIMPLEs should be established between Jan 1 and October 1 of the first year of the plan, unless the business started after that. Plans can be set up relatively quickly and can even use automatic enrollment if employees are given the ability to opt-out. Continue reading...
What is a Homeowners Association (HOA)?
A homeowner’s association (HOA) will exist in many planned communities and subdivisions, and the association will usually expect dues to be paid from all residents in a community. They will have a board of directors, usually, who make it their business to help maintain the quality of the neighborhood by making sure common areas are taken care of and that residents are complying with the community rules. A HOA may have rules in place that make a place unpleasant to live in for some people. Continue reading...
What is the Lightning Network?
The Lightning Network is a system that allows for extremely fast Bitcoin transactions off-chain. Lightning Network is a smart contract protocol that uses existing blockchains to mediate transactions off-chain to increase the speed at which they can be finalized. Such a technology is much sought-after in the Bitcoin community, where transactions can take hours to clear if the workflow for miners gets backed up. With the fast pace of business today, the emergence of many other options for faster settlement, such as Ethereum and Ripple, developers know that something like Lightning Network may be needed to keep Bitcoin relevant and make it more scalable. Continue reading...
Deciphering the Broadening Wedge Descending (Bearish) Pattern: A Blend of Market Psychology and Strategic Trading
Dive into the world of stock trading with our insightful article on the Broadening Wedge Descending (Bearish) Pattern. Discover the intricacies of this unique pattern, how it shapes market trends, and the strategic trading approaches it entails. Unravel the psychology behind pattern trading, and learn how to leverage this knowledge for better risk management and informed decision-making. Perfect for both novice and seasoned traders, this article is your key to mastering one of the most intriguing aspects of the stock market! Continue reading...
What is Form 1045: Application for a Tentative Refund?
IRS Link to Form — Found Here Form 1045 can be used to apply for a refund that might carry-back of up to 5 years, if an individual or trust has overpaid on their taxes, finds Net Operating Losses (NOL), or has section 1256 losses to carry-back. The 1045 is meant to be the quickest way to get a carry-back refund. Net Operating Losses from a pass-through entity or business can be carried back up to 5 years now, according to updates to IRC 172(h). Section 1256, which applies to futures contract investing, will allow a carry-back of losses in a 3-year time frame. For such carry-backs, the standard filing is IRS Form 1045. Continue reading...
What Is a Payment Gateway?
At its core, a payment gateway is the technological bridge that enables businesses to accept payments from customers, primarily via debit or credit cards. This umbrella term encompasses the physical card-reading devices commonly seen in physical retail stores and the digital portals that facilitate online transactions. Moreover, as technology continues to advance, payment gateways now encompass innovative methods such as phone-based payments using QR codes or Near Field Communication (NFC) technology in physical stores. Continue reading...
Should I Notarize my Will?
In general, a will must be signed in the presence of two witnesses, each of whom must also sign your will. Whether or not a notarized will is accepted by the court depends on the rules of the state in which you live. You should cross-reference the rules of your state and comply to them, or simply consult an estate planning attorney for the best approach. How is a Will Implemented After my Death? Do I Need Professional Help to Prepare a Will? What is Probate? Continue reading...
What is the Difference Between Litecoin and Bitcoin?
Litecoin is very similar to bitcoin, but there are some distinct differences. Litecoin was designed with a blockchain protocol called Scrypt rather than SHA 256, which powers bitcoin. In Scrypt, blocks have solved an average of every 2.5 minutes rather than the 10 minutes that bitcoin requires. Let’s face it -- 10 minutes is a really long time in the digital world, and litecoin was created in an effort to get things moving a little faster. This means that each confirmation takes less work and energy for the network to confirm, which should translate into lower transaction costs. Continue reading...
What Is a Promissory Note?
A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. In this article, we'll delve into what a promissory note is, how it works, its types, and the advantages and disadvantages of using one. Promissory notes can be thought of as a financial intermediary between the informality of an IOU (I Owe You) and the strict structure of a loan contract. An IOU simply acknowledges a debt, while a promissory note includes a promise to pay on demand or at a set date, along with details on the repayment process. Continue reading...
How might the Fidelity Crypto Launch benefit from the current banking turmoil?
Discover how Fidelity Investments is seizing the moment in a turbulent banking landscape with its strategic foray into retail crypto services across 36 U.S. states. This article explores Fidelity's timely expansion, its unique offerings, and its role as a safe harbor in the face of regulatory scrutiny. As the crypto market evolves, Fidelity's history, adaptability, and commitment to stability position it as a pivotal player for investors seeking secure and accessible options in a rapidly changing financial world. Continue reading...