February 12, 2014
Growth Stocks vs. Value Stocks
Investors are often confused about the differences between growth stocks and value stocks. The main way in which they differ is not in how they are bought and sold, nor…
February 12, 2014
How Are Mutual Funds Taxed?
Many people have heard the Benjamin Franklin quote, “In this world nothing is certain but death and taxes.” Mutual fund taxes can be onerous. However, if you understand the complexities…
February 12, 2014
What Is Stock?
Most people know something about the stock market, but many investors who see stock as a way to get rich quick might not understand exactly what stock is and how…
February 12, 2014
Zero-Coupon Bonds
Zero-coupon bonds (“zeros”) represent a type of bond that does not pay interest during the life of the bond. Instead, investors buy these bonds at a steep discount from the…
February 12, 2014
What Types of Bonds Are Available?
Bonds are issued by federal, state, and local governments; agencies of the U.S. government; and corporations. There are three basic types of bonds: U.S. Treasury, municipal, and corporate. Treasury Securities…
February 12, 2014
What Is a Bond?
When you invest in bonds, you are investing in the debt of a government entity or a corporation. A bond is simply evidence of a debt and represents a long-term…
February 12, 2014
What Do Bond Ratings Mean?
Bond ratings gauge a bond issuer’s financial ability to repay its promised principal and interest payments. Ratings are based on an analysis of the issuer’s financial condition and creditworthiness. In…
February 12, 2014
What Is a Stock Index?
In 1884, Charles Henry Dow averaged the closing prices of 11 stocks he considered representative of the strength of the U.S. economy in a paper that preceded The Wall Street…
February 12, 2014
What Is a Closed-End Fund?
Closed-end funds have been around since 1893, more than 30 years before the first mutual fund (also known as an open-end fund) was created in the United States. However, closed-end…
February 12, 2014
What Investment Risks Should I Know About?
Taken by itself, the word "risk" sounds negative. But broken down into what it really stands for in terms of investing, it begins to be a little more manageable. By…
