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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
Are the markets efficient?

Are the markets efficient?

The concept of an efficient market is more applicable today than it was when it was conceived, a truly efficient market is nearly impossible. The Efficient Market Hypothesis states that random new information will affect the value of securities, and that new information disseminates so quickly among rational investors that it is futile to try to beat the “market portfolio.” Thirty years ago, this was more of a theory than an observable phenomenon, and plenty of inefficiencies in the dissemination of information and the pricing of securities could be pointed out. Continue reading...

Can I Leave My 401(k) With My Former Employer?

Generally a plan will allow you to leave your assets in there indefinitely, but this is probably not ideal for you. Most custodians will be happy to hold onto your account dollars as long as you’re willing to leave them there. They don’t have to spend any time servicing your account since you can’t make contributions and probably aren’t even able to reallocate your assets, and they will continue to make money on your account with the built-in fees. You may be charged inactive account fees or small account fees as well. Continue reading...

What is the SEC?

What is the SEC?

The Securities and Exchange Commission (SEC) is a governmental regulatory agency established by Congress which polices the practices of the securities industry. Since 1934, the SEC's mission has been to protect investors and the market from malfeasance. FINRA (the 2007 successor to the NASD which was formed in 1939) is a self-regulatory organization in the industry which seeks to keep member firms more than compliant with SEC regulations. 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 an A-B Trust?

What is an A-B Trust?

An A-B Trust is a plan which actually creates two trusts at the death of the first spouse, and is a strategy intended to avoid as much estate tax risk as possible. Each spouse has an estate tax exclusion amount of $5.45 Million, and laws have made unused exclusion amounts fully portable to the surviving spouse, but for our purposes here, most of the exemption will be used up. So a Bypass Trust will be created which uses some amount of the exclusion, and will take that money out of the estate of the surviving spouse. The spouse can still get some income from this trust and have some discretion and control of the principal amount, but cannot use the principal for themselves. Continue reading...

What is an Account Balance?

An account balance is the amount either credited to or owed on a ledger assigned to a particular entity or line-item. The balance of an account is the net debit or credit assigned to it after all transactions have been documented for a current period. Transactions might be deposits, withdrawals, interest credited, fees, or other activity. The account in question could be a personal savings or checking account, or a ledger account at a business or institution, or another form of account, such as the macroeconomic concept of current national account. Accounts are said to be “in the red” when there is a net debit (negative) amount, and “in the black” when there is a net positive balance (net credit). Continue reading...

Best Day Trading Guide

Best Day Trading Guide

Day traders, by definition, trade on a very short-term time frame, seeking to generate profits by opening and closing positions hour-by-hour and having the majority of their positions closed by the end of the day. Short-term profits and income are the goals with most day-traders, and the term is used more and more for “amateur” traders who trade from home and treat it as their primary occupation without being part of a brokerage firm. Day trading has become more and more prevalent for independent, non-affiliated investors who trade from their computers at home for hours a day. 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 Earnings Before Interest, Taxes ,and Depreciation (EBITD)?

Earnings Before Interest, Taxes, and Depreciation (EBITD) is one method of viewing the earnings of a company with some of the typical expenses added back into it. It is not to be confused with its close cousin EBITDA, which also adds amortization back in. Amortization is essentially the same thing as depreciation, but amortization applies to intangibles such as debt principal amounts and intellectual property. Continue reading...

What is Form 2848: Power of Attorney and Declaration of Representative?

IRS Link to Form — Found Here Sometimes individuals need representation to argue their case to the IRS or the tax court. To this end, there is an IRS form, the 2848, which designates an individual to represent the taxpayer on tax matters. The person receiving agency must be qualified and certified to perform such work. CPAs, Enrolled Agents (EAs), tax attorneys, and a few other professionals are qualified to represent taxpayers (or non-taxpayers, as the case may be) on tax matters in a tax court or IRS audit. To give one of these registered tax advisors the authority to serve as your agent and proxy for such matters before the IRS and tax courts, you must file a Form 2848. Continue reading...