Articles on Stock markets
News, Research and Analysis
What is present value?
The price in today's dollars for an asset which will appreciate or depreciate to an amount which may be known at a specific date in the future.
One simple example of Present Value is the amount that needs to be invested in order to grow to a specific amount later, if the rate of return and length of time are known. So if someone wanted to have $50,000 to buy a boat in 5 years, and they could get 5% on a guaranteed investment, they would need a lump sum investment of about $39,000 to get them there.
That $39,000 is the Present Value of the $50,000. The $39,000 will turn into the $50,000, so it's like buying that boat at a discount. The rate of return is referred to as the Discount Rate when things are viewed from future values and discounted backward.
This explanation is a little oversimplified, but it will get you going in the right direction.
What are the Tax Implications for Making a Profit (or Loss) On a Stock?
Gains on stock investments will be taxable in the current year unless they can be offset with losses
What’s the Difference between a Defined Benefit Plan and a Defined Contribution Plan?
Defined Benefit plans and Defined Contribution plans look similar, but the main difference is what is certain and defined
How Much Money Does the Government Have Invested in Social Security?
As of 2016, there is about $2.8 trillion in the Social Security Trust Funds
What is the Difference Between a Will and a Trust?
A primary difference between a will and a trust is that a will goes into effect once you die, but a trust goes into...
What is Income Risk?
Income risk is the chance that an investment which is used for income will fluctuate in an unfavorable way
What is Discounted Cash Flow?
Discounted Cash Flow (DCF) uses an estimated future cash flow amount and a Discount Rate to determine the Present Value
What is a REPO?
REPO is shorthand for Repurchase Agreement. It is a money-market practice to buy/sell government securities overnight
What are Marketable Securities?
Marketable securities is a term referring to assets/securities that can be converted to cash easily, at least in a year
What are Utilities Stocks?
Utilities stocks are those who deal in services like water, electricity, gas, and other critical infrastructure
What is the adaptive market hypothesis?
The Adaptive Market Hypothesis uses theories of behavioral economics to update the aging Efficient Market Hypothesis