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investing

A collection of 152 issues

What Are Dividends? Definition, Types & Investor Benefits

Introduction Dividends are payments, in cash or stock, that companies distribute to shareholders from profits. They reward investors for holding equity and signal management’s confidence in future earnings. How Do Dividends Work? Public corporations declare dividends through their boards. Key dates include the declaration date, record date, ex-dividend date,

What Is a Convertible Bond? A Complete Guide for Investors

What Is a Convertible Bond? A Complete Guide for Investors Convertible bonds blend the steady income of traditional bonds with the upside potential of stocks. Issued by companies seeking flexible financing, these hybrid securities let investors receive fixed coupon payments and later exchange the bond for a predetermined number of

Compound Interest: Definition, Formula, and Wealth-Building Power

Compound Interest Explained Compound interest is called the eighth wonder of the world because it lets money grow faster than simple interest. You earn returns on your principal and on previous interest, creating a snowball effect that can turn small contributions into substantial wealth over time. How Compound Interest Works

Certificate of Deposit (CD): A Safe Way to Grow Savings

What Is a Certificate of Deposit? A Certificate of Deposit, commonly shortened to CD, is a time-deposit account offered by banks and credit unions. In exchange for leaving money untouched for a predetermined term, the institution pays a guaranteed interest rate higher than most standard savings accounts available today. How

Capital Gain: Definition, Tax Rules, and Smart Strategies

What Is Capital Gain? Capital gain refers to the increase in value of a capital asset—such as stocks, bonds, real estate, or a business—between the purchase price and the selling price. When the asset is sold for more than its original cost basis, the difference is recognized as

Capital Asset Pricing Model (CAPM): A Complete Guide

What Is the Capital Asset Pricing Model? The Capital Asset Pricing Model (CAPM) is a cornerstone of modern portfolio theory and corporate finance. By linking an investments expected return to its exposure to market risk, CAPM helps investors decide whether a security is fairly priced. Mastering this straightforward yet

Callable Bond: Definition, Risks, and Investment Strategies

Introduction to Callable Bonds A callable bond, sometimes called a redeemable bond, is a fixed-income security that allows the issuer to repay the principal before the scheduled maturity date. This embedded call option gives companies and municipalities flexibility, while offering investors a potentially higher yield to compensate for early-redemption uncertainty.

What Is the Buy-and-Hold Strategy? A Long-Term Investor’s Guide

Understanding the Buy-and-Hold Strategy The buy-and-hold strategy is a long-term investing approach in which an investor purchases securities—typically stocks, index funds, or ETFs—and keeps them in a portfolio for an extended period, regardless of market fluctuations. Rather than trying to time short-term price movements, buy-and-hold investors focus on

Understanding a Bull Market: Definition, Signals, and Strategies

What Is a Bull Market? A bull market refers to a prolonged period during which the prices of financial assets, most commonly equities, rise consistently. Market sentiment is optimistic, economic indicators generally improve, and investor confidence fuels additional buying. Analysts typically define a bull market as a 20 percent advance

What Is a Broker? Roles, Benefits, and How to Choose the Right One

Understanding the Term “Broker” A broker is a licensed intermediary who connects buyers and sellers in exchange for a fee or commission. Whether you are trading stocks, purchasing real estate, or shopping for insurance, a broker uses market knowledge, negotiation skills, and regulatory expertise to complete transactions efficiently and securely.