What are the Contribution Deadlines for My Keogh Plan?
Generally the deadline for contributions is the tax filing deadline, with extensions. In order to deduct your contributions to a Keogh Plan from your taxable income, the Keogh Plan has to be set up by the last day of that year (December 31). The deadline to make contributions to your Keogh Plan is the same as the due date for Federal Income Taxes for your business. This includes extensions, so you may be able to make contributions until October of the following year. Continue reading...
What is “efficient market hypothesis”?
The Efficient Market Hypothesis (EMH) states that it is impossible to beat the market consistently over time, since all available information is priced efficiently into stock prices. But what the EMH misses is the impact that sentiment can have on price discrepancies in the short-term. Emotions can lead to gross mis-valuations (as we saw with the tech bubble in 2000), and market corrections can see stocks selling off dramatically for no fundamental reason. Continue reading...
Is Bitcoin Legal?
Bitcoin remains a technology and a currency that primarily exists outside of the influence and control of governments and regulated markets. In most places, it is accepted for what it is. In some countries, it is explicitly banned. Bitcoin is technically illegal in a few parts of the world, but for the most part, it remains in the extra-legal realm, existing outside of the traditional legal system and the regulated markets. Bitcoin was created in large part to be difficult to understand and to pin down, to be part of the fringe and underground that could not be controlled by a central authority. It is open-source, so no one owns the rights to the code, and the community of programmers interested in shaping the future of cryptocurrency frequently attempts to make small upgrades and tweaks to blockchain technology in the interest of creating more efficient, more scalable blockchain cryptocurrency. Continue reading...
What is Ether?
Ether is the currency that powers the Ethereum network, which is a platform of distributed blockchain computing on which transactions, smart contracts, and distributed applications operate. Ethereum is a blockchain code environment through which distributed applications, smart contracts, and financial transactions using the Ethereum protocol are tested, validated, and added to distributed ledgers by the mining computers acting as nodes in the network. Ether is the currency, or token, in the Ethereum world which is used to pay the miners and transaction fees which are specific to its blockchain. Continue reading...
How Do You Use Ethereum?
When most people ask this question they are actually asking how to use Ether, the main currency of the Ethereum platform. But the Ethereum platform can be used in many ways as well. Ethereum is a platform that can be used by developers to create decentralized applications (dapps), tokens/cryptocurrencies, and basically anything else that can be programmed. It was the front-runner of the race to develop what is sometimes called Crypto 2.0: blockchain technologies that go well beyond singular usage as digital currency and instead reach and revolutionize every aspect of digital technology in the world today. People can and do use Ether, the primary currency of the Ethereum system, to make transactions like a currency, or as an investment. Continue reading...
What is the Accounting Cycle?
The Accounting Cycle includes all of the documentation that is collected and all of the controls and systems in place to ensure accurate accounting. The Accounting Cycle begins with the point of sale, with documentation for the transaction (invoice or receipt) and the internal expenses and inventory. There are conventions, controls and systems in place to account for and control the flow of information in a company at each stage of the process to ensure that accounts are as accurate as possible. The Accounting Cycle may refer to the length of time between trial balances, such as monthly, quarterly, or annually. Continue reading...
What is Bank Credit?
Bank Credit is the amount of loaned capital that an individual or business is capable of getting from a bank at a given time. This amount will be based on a series of evaluative metrics such as the total amount of assets an individual has, home equity, income, liquid net worth, work history, credit rating, and so forth. An individual can only borrow so much at a time, and, using these variables, a banker can essentially estimate how much credit could be extended that a given individual at that time. Continue reading...
What is market research?
Market research is the process of evaluating a possible opportunity for entering into a market with a new product or company, or for evaluating the effectiveness of a product or company in a market that they are already invested in. Market research can also be important for decisions regarding mergers and acquisitions. It may involve surveys and market study groups. Sometimes a company will conduct its own market research, but often third-party companies are hired for the task. These companies may specialize in sampling and surveying methods for consumer groups, and/or statistical analysis of a business model or product’s chance of success in a given market. Companies may look to such analysts if they are considering a merger or acquisition, or of launching a new product. Continue reading...
Who is a commodity trading advisor (CTA)?
A Commodity Trading Advisor (CTA) is registered with the National Futures Association (NFA) to manage client funds in a managed futures account (MFA) or other pooled investment such as a hedge fund or commodity pool in which the primary instruments being used are commodity futures, swaps, and other commodities derivatives. CTAs are a particular type of money manager specializing in commodities. Commodities Trading Advisors (CTAs) are licensed to manage commodity pools, managed futures accounts, and commodity-based hedge funds on behalf of clients. Continue reading...
What is the Hindenburg omen and is there any merit to it?
The Hindenburg Omen is technical indicator meant to predict bear markets, sell-offs, and declines. It is named after the famous tragedy of the Hindenburg Zeppelin in Germany on May 6th, 1937. The “Omen” identifies several very complex technical patterns in the behavior of the NYSE, such as the number of new highs, new lows, and some other indicators. It claims to predict market crashes within a very short period of time (about 40 days). Continue reading...