Investing

Mutual funds have suffered a serious blow when the public learned about serious machinations in the industry. The public has heard a number of times that the majority of the funds underperform the average return of the stock market. However, the funds are still there. Moreover, you will probably need…

A “closed-end fund,” legally known as a “closed-end company,” is one of three basic types of investment company. The two other basic types of investment companies are mutual funds (open-end investment companies) and Unit Investments Trusts (UITs). Here are some of the traditional and distinguishing characteristics of closed-end funds: –…

With the stock market growing fast, stock mutual funds continue playing an important role. Mid caps, short for medium capitalization, refer to stocks with a capitalization in between $500 million and $7 billion. To understand properly mid caps, it is important to really distinguish between “small”, “medium” and “large” caps….

Stock generally refers to shares of Common Stock or an “equity share” of a corporation. Each share of Common Stock represents a share of ownership in a company. The price of a stock generally represents investor expectations about the future profitability potential or future value of the company, and may…

Debenture bonds Most corporate bonds are debentures – that is, unsecured debt obligations backed only by the issuer’s general credit and the capacity of its earnings to repay interest and principal. However, even unsecured bonds usually have the protection of what is known as a negative pledge provision. This requires…