Articles on Stock markets

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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

What are Sector ETFs?

Sector ETFs hold a portfolio of stocks and other securities that represent a specific sector of the market. Sector ETFS are managed portfolios of securities which are representative of a specific industry or market sector. They might passively track a sector index or be actively seeking alpha over the sector benchmark. The word “sector” is a broad term for a grouping of companies in the market, but the word “industry” is sometimes used interchangeably. There are 10 sectors in the S&P 500: healthcare, financials, energy, consumer staples, consumer discretionary, utilities, materials, industrials, information technology, and telecommunications (telecom) services. Continue reading...

Learn Options Trading

Learn Options Trading

Options are contracts used by investors to take a speculative position – or a hedge – based on expected future price movements of the underlying securities. An option is a contract which can be exercised if the price of an underlying security moves favorably. An option will be written or sold short by one investor and bought by another. It will name the strike price at which the security can be bought or sold before the expiration of the contract. Continue reading...

Does IRS Rule 72(t) Provide a Way to Take Early 401(k) Withdrawals Without Penalty?

Rule 72(t) allows the owner of a 401(k) or IRA account to take “substantially equal periodic payments” from an account without owing the 10% early withdrawal penalty. Taking money out of a401(k) or IRA before age 59½ will generally cause someone to owe a 10% early withdrawal penalty. One of the ways this penalty can be avoided, however, is if the participant uses 72(t) distributions. IRS rule 72(t) is the section of the code that describes early withdrawal penalties, but it also allows “substantially equal periodic payments” to be taken from a 401(k) or IRA without owing the 10% penalty. Continue reading...

What are the 401(k) Contribution Limits?

The contribution limits of 401(k)s are generally increased year-to-year and published by the IRS. As of 2016, an individual can contribute up to $18,000, or 100% of compensation, into their 401(k) account on a pre-tax basis. This is the employee’s contribution only, and does not include employer contributions. There is a $35,000 window that can hold employer contributions, which may contain matching contributions as well as a profit-sharing component for a total of $53,000 in employee/employer contributions per year. Continue reading...

What Provisions Should a Long-Term Care Policy Contain?

What Provisions Should a Long-Term Care Policy Contain?

Long-term care insurance policies can be structured in any number of ways, depending on your desired coverage. More coverage equals more premium cost, but may save you money later in life if you use your policy for a number of years. There are a variety of provisions (also known as riders) to consider, including but not limited to the dollar amount of your daily benefit (usually $200 - $500), whether it is a reimbursement or paid in full, which facilities qualify for coverage, what kind of assistance you’ll provided, whether or not it includes a nurse on duty 24 hours a day, access to a doctor, whether you’ll have a room to yourself or not, and so on. Continue reading...

What is Cash-Flow Financing?

Cash flow financing is an alternative method of securing a loan, in which cash flows are the collateral, not assets. In cash flow financing, also known as cash flow loans, a lending institution will base their decisions regarding the size of the loan and the loan repayment schedule on future expected cash flows of the company. The cash flows serve as collateral instead of assets, as in an asset-backed loan. Continue reading...

What is IRS Publication 505, Tax Withholding and Estimated Tax?

IRS Link to Publication — Found Here This IRS guide gives taxpayers and businesses an idea of how to calculate the appropriate amount of withholding to do and how to continually estimate tax rate on an ongoing basis for an entire year. It is about 60 pages long and touches on many issues related to tax withholding. Tax withholding applies to payroll needs, self-employed reporting, as well as some retirement planning applications, among other things. Continue reading...

What is the Broadening Wedge Ascending (Bearish) Pattern?

What is the Broadening Wedge Ascending (Bearish) Pattern?

The Broadening Wedge Ascending pattern forms when a security price progressively makes higher highs (1, 3, 5) and higher lows (2, 4), following two widening trend lines. This pattern may form when large investors spread their buying over a period of time. When initial buying occurs, other market participants react to rising price and jump on the bandwagon to participate. Then value investors begin to sell, believing the price has risen too much, which spurs the original large investor to resume buying again. Once these activities stop, the price may break out in either direction. Continue reading...

What are Some of the Applications of Blockchains?

What are Some of the Applications of Blockchains?

The overarching theme of blockchains is that they can provide security and asset verification in a decentralized system, which is perhaps the best-known method for preventing fraud. Blockchains are a technological revolution that provides an opportunity to establish strong systems for digital identity. Here are some of the applications and uses for it: A user can authenticate a unique physical item by pairing them with a corresponding digital token. In that sense, these tokens serve to connect the physical and digital worlds. With a token assigned to each physical good, that can revolutionize supply chain management, managing intellectual property to prevent counterfeiting and fraud detection. Continue reading...

How to use Andrew's Pitchfork in trading

How to use Andrew's Pitchfork in trading

Alan Andrews designed Andrew’s Pitchfork to define a trend with support and resistance lines around a median line, all three of which are derived from three points at peaks and troughs around the onset of a current trend. The overlay takes the shape of a trident or pitchfork, with Andrews calling the lines “tines,” after a pitchfork’s prongs. The origin point is placed at the location of a major trend reversal or a definitive support/resistance level, forming beginning of the pitchfork’s “handle.” Once the incline of the pitchfork is suitable, traders can attempt to use it for indications of overbought/oversold conditions, or to indicate a transition to a new trend. Continue reading...