Things Everyone Should Know About Roth IRA
Roth IRAs are highly preferred by people for their retirement savings with offering tax-free investments. According to many people, it is the one of the …
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Investing
6 Things Beginners Must Know About Asset Allocation Before Starting Investing
Asset allocation is one of the most general portfolio management strategies. It can be simply defined as “Don’t put all your eggs in one basket.”…
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What are the major types and classifications of markets?
When we talk about the markets, we usually refer to financial asset markets. However, there some other markets. These markets can be grouped as pairs …
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How are the financial markets classified? Who are the borrowers and savers in financial markets?
Financial markets are classified based on the following points;
- underlying asset
- delivery date
- maturity
- players
In addition, we know that financial markets bring borrowers and …
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What are the characteristics of hedge funds?
Hedge funds are mostly preferred by the professional or institutional investors since they are aggressively managed and riskier than other funds. Their characteristics are;
- having
What are the characteristics of mutual funds?
Mutual fund is one of the leading investment tools preferred by many investors. A mutual fund can invest to stocks, bonds, money market instruments at …
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Why should a junior investor start to investment with mutual funds?
Mutual funds collect money from many investors and invest this money to stocks, bonds, cash, or other securities. If you are starting investment, it is …
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How are stocks taxed in the U.S?
In the United States, taxes on the stocks are changing depends on the account type, receiving dividends and income level.
If you buy stocks for …
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What are cyclical company and cyclical stock?
Cyclical company is a firm whose sales and earnings will be heavily influenced by the overall business activity. This kind of companies perform well during …
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What are defensive company and defensive stock?
Defensive company is this whose future earnings are likely to withstand an economic downturn. One would expect them to have relatively low business risk and …
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What are growth company and growth stock?
Companies are usually classified depending on the changes in sales and earnings, or investments’s rates of returns
A growth company is a firm which makes …
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What are the basic investment valuation techniques?
Commonly used investment valuation techniques are accounting rate of return, payback period, discounted payback period, internal rate of return, and net present value.
Now let’s …
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Who is the creator of 401(k) monster: Ted Benna or wild capitalism?
Nowadays, there are increasing debates about 401(k) plan in U.S. As we now, 401(k)s are the largest and most common type of defined contribution plan, …
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Stock valuation ratios-2: Price to book value (P/B)
Price to book value (P/B) is the ratio of market price per share to book value per share.
In order to calculate P/B …
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Stock valuation ratios-1: Training P/E and Leading P/E
Earnins of companies are major driver of value of stock, thus earnings per share (EPS) is the main focus of analysts and investors.
There are …
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What is 401 (k) plan? How it works? What are the restrictions?
What is 401 (k) plan?
401 (k) plan is most common type of retirement savings plans. This plan is offered to employee through his/her employer, …
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What are the types of retirement plans?
All Americans want to have a comfortable retirement with enough money. Thus they make savings with some retirement plans.
There are various plans for retirement. …
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What are the contribution limits for 401k in 2016?
In 2016, contribution (elective deferral) limit for employees, participates 401 (k) plan, is the same with limit of 2015.
The limit of the federal government’s …
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These five measures will help you when you invest in stocks
While investing in stocks, you should examine 5 basic financial ratios. After having more investing information, you can look at other detailed ratios.
- Price-to-earnings ratio
Look at these 5 company fundamentals while investing in stocks
As an stock investor, you should choose the right company to invest in its stock. If you do not have enough financial analysis information, you …
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