The current yield on a bond takes into account its annual interest payment but also the price at which it can be sold.
The yield on a bond held to maturity is fairly straightforward. However, if the bond you are holding is trading at a price higher or lower than where you purchased it, the current yield would be different than the yield to maturity.
For example, if you purchased a 5% bond at a price of $100, but the current market price was $90, your current yield would be significantly lower than 5%. To calculate, simply divide annual cash inflows by market price.
C-corps are generally the larger, more established companies in the country – most publicly-traded companies are C-corps
Gains on stock investments will be taxable in the current year unless they can be offset with losses
Consensus is a measure of investor beliefs which are in-line with one another, and can be determined by strong trends
Discounted Cash Flow (DCF) uses an estimated future cash flow amount and a Discount Rate to determine the Present Value
Enterprise Value is the total cost to acquire a company. Enterprise value and its ratios can be used to compare companies
Subordinated Debt is a junior security which will be serviced after the Unsubordinated Debt in the event of a bankruptcy
There are investments which have the potential for very high returns, but they will always be that much riskier
A more salient way to understand unrealized gains is to look at the opposite: unrealized losses. If a person makes an...
Markets have been around for much longer than most people think. The Tulip bubble happened in the 1500's!
The term "Financial Advisor" applies to professionals who are compensated for helping to implement investment strategies