When given choices on (for example) an investment action to make, the opportunity cost represents the potential loss of taking one action versus another.
Let’s say you have the choice of buying stock A or a U.S. Treasury yielding 4%, and you choose stock A. But it turns out that stock A only ends up producing a 1% return on the year. In this case, your opportunity cost for that year would have been 3%.
Mutual funds are managed portfolios of stocks and bonds, where the portfolio manager uses pooled investor funds to...
A bull call spread is a vertical spread that buys and sells calls in a way that benefits from upward price movement
401(k) plans typically allow loans to be taken, so that investors don’t have to pay taxes or an early-withdrawal penalty
There are pros and cons to buying so-called Medigap coverage, and it can depend on how much medical care and services...
Accounting standards are the practices which make financial information uniform and normalized between various businesses
An accounting period can be a fiscal year, quarter, or month, or any other time frame for which reporting is being done
Home equity loans give a homeowner the ability to borrow a lump sum against their home equity. Homeowners have the...
The Federal Communications Commission is a bipartisan regulatory body that oversees interstate communications media
Market efficiency describes the degree to which relevant information is integrated into the price of a security
Publication 17 is a very large and detailed guide to help individuals correctly file their federal income tax returns