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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
How should my strategy change with age?

How should my strategy change with age?

The more time you have to invest, the more room you have to make mistakes, wait-out downturns, and to experience the power of compounding interest. As you get older and need to draw income from investments, things change. The answer is relatively simple: you can afford to be very aggressive when you’re young, and gradually become more and more conservative with your investments as you grow older. Generally speaking, stocks are considered risky investments, while bonds are considered less risky, so a person’s portfolio mix from age 40 to age 80 might go from 80 stocks/ 20 bonds to 50/50 or even 20 stock/ 80 bonds depending on his or her preferences and the market conditions. Continue reading...

If I Want to Establish a SEP IRA, Do I Have to Establish One for All Employees of My Business?

All employees that meet minimum eligibility criteria must be included in a SEP IRA arrangement. If you decide to establish a SEP IRA, every eligible employee must be given a SEP IRA account to receive employer contributions. An employer is able to expand eligibility but cannot ignore the minimum eligibility rules. If an employee is over 21, has worked at the business in 3 of the last 5 years, and has earned over $600 in the most recent year. Continue reading...

What is the VIX?

What is the VIX?

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...

What is a Limit Order?

A Limit Order is a type of order to buy or sell a security, where the trader wants to set a specific price for the trade, or any price that’s better than the price set. From a buy and sell standpoint, a buy limit order would be designed to have the trade executed at the designated price, or any price lower than that. A sell order is just the opposite, where the trader hopes to execute the trade at a minimum set price. Limit orders typically have a period of time before they are canceled, if the designated price is not reached by a certain period. Continue reading...

What is trend analysis?

What is trend analysis?

Trend analysis is an attempt to explain market movements as general directional tendencies of various strength over various time frames. Trend analysis also works to predict future movements based on the probability of a trend continuing. The use of moving averages with support and resistance levels is the most commonly used methodology in trend analysis, and several trading strategies employ these tools in various ways. Trade volume, spreads, news, crossover points, and other market factors are also considered in the discipline. Continue reading...

What is a Cash Conversion Cycle?

A business with a fast ‘cash conversion cycle’ can efficiently use funds and resources to fulfill the different needs of the business and to generate more business. In the simplest terms, the ‘cash conversion cycle’ is an accounting and efficiency model which measures how fast a retailer can disburse cash to suppliers and then receive cash from customers. To be more descriptive, the business would use cash from Receivables, to get Inventory (and cover Payables), sell that Inventory, and Receive cash again. Continue reading...

What is a Bank Draft?

The truest definition of a Bank Draft is a check written with the certification of a customer’s bank. Bank Drafts are checks also known as Bank Checks and Cashier’s Checks. They have already been cleared at the writing institution and they provide an extra endorsement that the payment is good. Regular personal checks do not need to be co-signed or verified before they are used as payment, whether or not there is enough money in an account to cover it. Continue reading...

What is a Takeover?

A takeover is an acquisition done through the procurement of enough equity interest to govern a company from the board of directors. Takeovers can be hostile or friendly, and may involve a tender offer from the acquiring company who seeks to buy a large block of shares. Takeover carries a negative connotation, since in peaceful circumstances this is usually called an acquisition. An acquiring corporation will offer to buy enough shares to have a controlling interest in the company in what is called a tender offer. Shareholders of the target company will have a set amount of time to decide whether they would like to take the offer, which is normally to buy the shares at a premium over the market price. Continue reading...

What is Mortgage Life Insurance?

Mortgage life insurance is any life insurance policy which covers the life of the borrower in a mortgage loan and assigns the mortgage lender as a creditor-beneficiary entitled to recoup their losses from the life insurance policy. The bank or lender will be designated as the assignee for the collateral of the life policy. Historically speaking, mortgage life insurance was a term policy with a decreasing death benefit, also called a face amount, that equaled the remaining amount due on the mortgage loan. As the home was paid off, the amount of life insurance required would decrease, and, in most cases, the premium with it. Continue reading...

What is Mortgage Fallout?

Mortgage fallout refers to the instance of proposed loans falling through before closing. This is something tracked by not only mortgage producers and their mortgage companies, but also economists who keep up with mortgages and the secondary market for mortgage derivatives. Since mortgages take two months or more to close, the fallout rate can indicate a stagnancy in the economy and trouble for the secondary mortgage market. Continue reading...