In stock trading, if an investor sells a stock for more than they bought it for (or the price inherited), the profit realized is a capital gain. The same applies to gains made in real estate.
To note, assets held within tax-deferred accounts, like IRAs and 401(k)s, do not trigger capital gains when sold for profits. It only applies to taxable assets, like stocks held in a brokerage account. The capital gains tax is the tax paid on net capital gains in a given year.
A ‘Time Spread,’ also called a Calendar Spread, involves the use of multiple options of the same type, and strike price
Money Purchase and Profit Sharing Plans have several investment options, including stocks, bonds, mutual funds, annuities
Inflation plays a crucial role in your retirement planning. Investors should anticipate 2% - 3% inflation each year
Covering a short position means to acquiring the securities which were sold short, and returning them to the broker
Open interest is a measurement of the outstanding open positions in a derivative security. Strong open interest means high liquidity
A bond rated BB/Ba2 is just below investment grade and is a somewhat speculative financial instrument
Assessed value is used to determine the property taxes due on real estate. Assessed value is normally lower than appraisal
Distributions from qualified educational accounts such as 529s will be reported on a 1099-Q
The Arms Index is also called the Trin (short for “Trading Index”) because it seeks to indicate overbought or oversold conditions by serving as an index of trading activity