Investing

Understanding Interest-Rate Risks and Yields

Like all bonds, corporates tend to rise in value when interest rates fall, and they fall in value when interest rates rise. Usually the longer the maturity, the greater the degree of price volatility. By holding a bond until maturity, you may be less concerned about these price fluctuations (which…

Top Basic Facts that you need to know to Invest

Interest Payments Corporate bond interest is usually paid semiannually. Zero-coupon bonds pay no periodic interest. Forms of Issuance Corporate bonds are issued in several forms: Registered Bonds: Some corporate bonds are issued as certificates, with the owner’s name printed on them. There are no coupons attached for the owner to…

Types of Fixed Income Securities

There are a few types of Fixed Income Securities. Corporate Bonds Corporate bonds (also called corporates) are debt obligations, or IOUs, issued by private and public corporations. They are typically issued in multiples of $1,000 and/or $5,000. Companies use the funds they raise from selling bonds for a variety of…

Basics of stock market

Financial markets provide their participants with the most favourable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market. Financial market comprises variety of instruments,…

Getting to know investment process

The key point of investing funds is minimizing risks and getting income. To know more, it is important to distinguish between different processes investment comprises. We begin with the simplest terms, yet most likely unknown for the majority of the readers, winding up with the most optimal for managing funds…

Mutual Funds and Index Funds

Buy an index fund. Approximately 80% of mutual funds underperform the average return of the stock market. Here’s something else you need to know about mutual funds. We know you probably don’t want to spend hours learning about the intricacies of mutual fund investing. Even if you’ve cleared your calendar…

How to invest overseas using single-country funds and ETFs

For that reason alone, financial advisers typically recommend putting 15 percent of a stock portfolio in non-U.S. markets. For most people, a diversified international mutual fund covers the map. Yet if you’re keen on a particular foreign market, consider giving a small portion of your international allocation to a fund…

What are private equity investments

Private equity investments are capital invested in public, but more typically private, companies on a private placement basis and are not available in the public markets. Private equity investments run the gamut of corporate finance strategies, ranging from financing of start-up companies to debt investments in mature companies. Sub-categories that…

ETFs (Exchange Traded Funds): pros and cons

Exchange Traded Fund or ETF is a fund that tracks an index, but can be traded like a stock. They are like stocks because they: • trade all day long on the major stock market exchanges (mostly on the AMEX) • ETFs can be handles like regular stocks, which means…

What is behind the numerous figures of the quarterly reports

Investors need to get an idea of what is behind the numerous figures of the quarterly reports. It can be hard for an inexperienced investor to understand the point of this obscure paperwork. The first thing to take note of here is the company’s profit, i.e. the bottom line of…

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