Articles on Stock markets

News, Research and Analysis


Popular articles
Table of Contents
Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics
Is there any merit to the momentum theories?

Is there any merit to the momentum theories?

The momentum theory has many fans for its useful and relatively simple nature. The momentum theory basically states that markets which are moving either up or down for some period of time cannot suddenly reverse their course. Utilizing these strategies means jumping on a freight train, riding it for a short period of time, and jumping off before it stops and reverses direction. It is hard to argue with the this one, but it may be hard to find momentum strong enough for an investor’s taste in certain market environments, which might mean spending too much time on the sidelines, and due to the frequent active trading involved, the investor will incur fees and be susceptible to emotions and media hype. Continue reading...

What are the 403(b) Contribution Limits?

The contribution limits are increased over time with cost-of-living adjustments. 403(b) contribution limits are currently the same as 401(k) limits, and are adjusted for inflation at the same rate. As of 2016, if you are under age 50, you may contribute up to $18,000. If you’re over 50, you can also make a catch-up contribution of up to $6,000, for a total of $24,000 for the year. 403(b)s also allow an additional form a catch-up for employees who have been at the job for over 15 years and whose contributions in the past average out to less than $5,000 per year. These catch-ups are called Fifteen Year Cap Expansion Option or just service-based catch-ups. Continue reading...

What’s So Special about an IRA?

When compared to other methods of investing, there are benefits to using an IRA. An IRA provides tax deferred growth of your assets, and the result of such growth, over the years, can be quite remarkable in comparison with a regular savings account. Using an advanced calculator online – or asking an advisor or a CPA to run some calculations for you – can be an eye-opening experience. For most investors, mutual funds will be their best option for cost-efficient diversification. Holding mutual funds outside of an IRA or 401(k) means that the investor will have some taxes, whether long term gains or short term gains, passed on to him or her from the mutual fund company every year that the fund experiences gains. Continue reading...

How Can I Establish a Self-Employed 401(k)?

How Can I Establish a Self-Employed 401(k)?

Establishing an Individual 401(k) might only take you a matter of minutes. You can establish a Self-Employed 401(k) by going to an Individual 401(k) provider, or asking your Financial Advisor for help and/or recommendations. However, make sure that you are satisfied with the conditions your provider offers. There are dozens of choices available to you, all with different investment options and fee structures. There are plenty of good ones without annual plan fees, lost cost investment options, and a wide variety of investment choices. Continue reading...

What is an Electronic Communication Network (ECN)?

An ECN is an alternative platform to an index for making trades. An Electronic Communication Network is a type of alternative trading system that allows for trading listed stocks and other exchange-traded products. Trading on an ECN is typically limited to institutions and broker-dealers, and trades are facilitated when the price on a buy order intersects with a price on a sell order. ECN’s must register with the SEC, and you must be a subscriber to trade on one. Continue reading...

What is a Letter of Credit?

A letter of credit is a provided by a bank or financial institution on behalf of a borrower or buyer, to ensure the seller that payments will be made on time and in full. In the event that the buyer is unable to make payment on the purchase, the bank will have to step-in to cover the full or remaining amount of the purchase. Letters of credit are often used in international transactions to guarantee that payment will be received. Continue reading...

What is Fiscal Policy?

Fiscal Policy refers to the tactics used by a central government to influence the nation’s economy, whether by setting tax and/or spending policies. Fiscal policy is related to monetary policy, in that they are both aimed to either boost an economy or temper growth to avoid overheating. A fiscal policy conducive to growth would aim to have low taxes and higher level of spending. When a government invokes “austerity” measures, it means they are trying to cut spending most likely to reel-in budget deficits or overall debt levels. Continue reading...

What is a currency forward?

What is a currency forward?

Forward contracts allow an investment institution, bank, or individual investor to lock in a price for a good or service by agreeing to exchange a set amount of one currency for a set amount of another at the settlement date of a contract. Forward contracts may be used as the means of establishing a settlement price for goods or services that have been exchanged or will be exchanged in the future. Continue reading...

What is Home Equity?

Home equity is a notional amount that a person owns at any given time, which is computed as the market value of a home minus any remaining principal repayments on a loan. Home equity is an asset on a person’s balance sheet, and can be used as as leverage for additional loans or lines of credit. A person’s home equity is the amount in their home which is “paid off.” It can be computed by taking the fair market value of a home and subtracting the amount of principal, if any, that still needs to be repaid on a mortgage loan. Continue reading...

What is Income Tax Payable?

Income Tax Payable is an account on a company’s ledger where they reserve amounts that will be used to pay the tax liability in the current quarter or year. This account tends to be separate from payroll taxes and sales taxes. This account will typically be empty at the end of the fiscal year. Corporations must pay income taxes based on their gross income, and the funds to pay them are held in the Income Tax Payable account on their company ledger. Continue reading...