In today’s fast-paced global economy, there is a wide variety of investment vehicles to suit the individual needs of each investor. Knowing what each of these styles has to offer is the best way to diversify and tailor your portfolio accordingly. Click on any of the following to learn more.
Bear Market Protection
Sometimes, the best measure of success is not how well you do in a bull market, but how well you cope when the market is down. [more...]
Bonds
Bonds are tradable instruments (debt securities) issued by companies or governments to raise capital that guarantee payment of the original investment plus interest by a specified future date. Bond certificates act as evidence of a debt on which the issuer promises to pay the holder a specified amount of interest for a specified length of time, and to repay the loan on its maturity. [more...]
Currencies
To investors more familiar with the trading of stocks, futures and options, currency trading may seem like a strange and exotic process. For one thing, currency trading does not take place on a regulated exchange. Nor is it controlled by any central governing body. Also, there are no clearing houses that guarantee trades. Instead, it is based on credit agreements. [more...]
Dividends and Stocks
If there’s one thing that most blue-chip stocks have in common, it’s that they pay dividends. In fact, if a company pays a dividend, it’s generally a good sign because it often means its profits are such that it can afford to do so. [more...]
Dollar
There’s no denying that in recent years the value of the U.S. dollar has declined against those of foreign currencies. But while the dollar’s slide has eroded your purchasing power when it comes to imported goods or an overseas vacation, there is an upside: If you own assets abroad, you’re more than making up for that loss of purchasing power. [more...]
Exchange Traded Funds (ETFs)
Exchange Traded Funds (ETFs) are investment holding companies that track an index, but whose shares can be bought like any stock. ETFs bundle the securities that are in an index, but unlike mutual funds, can be handled like any normal stock. For example, an investor can short sell an ETF. [more...]
Interest Rates
Interest rates play a pivotal role in the course that the economy takes. The slightest deviation in the Federal Reserve’s policy in regard to rates can send stock markets soaring or plummeting. [more...]
International ETFs
Exchange Traded Funds (ETFs) are investment holding companies, whose shares can be bought like any stock. However, unlike U.S. stocks that get only part of their earnings overseas, International ETFs buy only foreign stocks. They are traded like stocks on U.S. exchanges, which bypasses any and all hassles of dealing with foreign exchanges. [more...]
Large-Caps
Large-caps are companies with a market capitalization exceeding $10 billion and, therefore, perceived to be the safest and most reliable stocks.
However, risk exists throughout the market, even among blue-chip stocks, and with reduced risk comes reduced growth potential. Nevertheless, large-caps appeal to more conservative investors looking for modest gains and income through quarterly dividends. [more...]
Mid-Caps
Mid-caps are companies with a market capitalization between $2 billion and $10 billion. Mid-cap stocks are a popular investment because these companies are primed for potential growth, while at the same time having already gone through some of the growing pains which small-cap stocks have yet to experience. [more...]
Mutual Funds
A mutual fund is a financial intermediary that allows a group of investors to pool their money with a predetermined investment objective. The pooled money is invested into specific securities (usually stocks or bonds) by a fund manager. By investing in a mutual fund, you are buying shares of the mutual fund and become a shareholder of the fund. [more...]
Options
An option is a contract giving an investor the right, but not the obligation, to buy ("call") or sell ("put") a fixed amount of shares (usually 100 shares) of a given stock or index and commodity at a specified price within a limited time period – usually three, six, or nine months. [more...]
Small-Caps
Although definitions may vary among brokerages, small-caps are companies with a market capitalization of between $300 million and $2 billion. These smaller companies have a greater chance for growth but also more volatility. [more...]
Stocks
Simply put, stocks are shares in the ownership of a company. When you own stocks in a company, it represents a claim on the company’s assets and earnings. The more shares of company stock you acquire, the more of an ownership stake you take in the company – and a larger portion of its profits. [more...]