Articles on Stock markets
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What is index investing?
The main idea behind index investing is that markets are efficient, and, especially with the low fees of indexed funds, it can be a winning strategy.
Index investing is a simple strategy of choosing the indices which reflect your investment beliefs and offer diversification, buying mutual funds or ETFs that track these indices, and holding them for a long period of time. The last 10 years have seen the propagation of index funds for any specific market, industry, country, commodity, etc.
Remember that it is impossible to invest directly in an index: index investing means buying shares of mutual funds and ETFs that closely track the index. Index weighting also comes into the equation, since some indexes and funds will use different weighting methods to determine how much of each company in the index to buy.
Some are equally weighted, some are weighted by market capitalization size, and so on. Buying and holding index funds is relatively inexpensive, and provides a good vehicle for diversification.
There are also index-oriented managed futures ETFs, some of which offer leveraged positions by using margin to purchase more futures contracts than otherwise.
What is the “Life with Period Certain” Option?
In a life with period certain annuity payout option, the company will pay a set income for as long as the annuitant lives
What is a Self-Employed 401(k)?
Self-Employed 401(k)s function in exactly the same way traditional 401(k)s do, except for a few tweaks. First of all
How Much Will Medigap Cost?
Generally speaking, Medigap policies are not cheap, since they cover all (or most) of the out-of-pocket costs for...
Can Blockchains Reduce Fraud and Failed Payments?
Blockchains can validate, clear, and document transfers of value much faster and more securely than traditional methods
What does overbought mean?
Overbought is a term used when analysis doesn't seem to justify the buying behavior of investors past a certain threshold
What is the Contribution Margin Ratio?
The contribution margin ratio presents a profit (less variable expenses) as a percentage of net sales
What is an Interest Rate?
An interest rate is a simple principle that’s been around for centuries, whereby a borrower has to pay for money borrowed
What is the commodity futures trading commission?
The Commodity Futures Trading Commission (CFTC) is an independent government agency that regulates the futures market
What is Duration?
Duration refers to the amount of time before a fixed income product will return the investment (principal and interest)
What is a Stop Limit Order?
A Stop-Limit Order basically automates the preferences of an investor or trader, to reduce exposure to price uncertainty