What is a stock? A stock is a financial instrument, or monetary contract, denoting partial ownership of a corporation. A unit of stock is called a share. A company issues shares when it divides ownership among investors or employees. Both public and private companies may issue shares, but they are traded and valued differently. The … Continue reading Stocks: Answers To Common Questions
With the outbreak of war in Ukraine, my heart goes out to all the Ukrainians and their relatives and friends around the world. War is a terrible thing, and the needless suffering of innocent people is heartbreaking. That said, during tumultuous times, people often wonder how their personal finances may be affected. This may seem … Continue reading How Does War Affect The U.S. Stock Market?
The COVID-19 pandemic has triggered the highest unemployment rate (14.8% in April 2020) since the Great Recession. Millions were out of jobs and struggled to make ends meet. As states eased restrictions and began to reopen, the economy has geared up to return to the pre-pandemic normal. More than a year has passed since then, … Continue reading Be Wary about Job Scams that Promise You Quick Ways to Wealth
A recent survey by MagnifyMoney found that a significant portion of investors, particularly younger investors, have taken on debt to invest. Out of about 1000 investors surveyed, 40% took on debt to invest. Here's how that broke down by age group: Generation Percent who took on debt to invest Z80%Millennials60%X28% Baby boomers 9% Of those … Continue reading Don’t Take Out Personal Loans To Invest
Investing can be simple, or it can be quite complex. For most people, simplicity is the best choice. Just invest in a total market or S&P 500 index fund, and you'll be good to go (check out The Simple Way To Become A Millionaire). This allows you to take advantage of compounding in the stock … Continue reading Why I Like Covered Calls
One of the biggest weak points for an investor is the emotional component to watching your money rise and fall. Most investors underperform the market, and a big reason for that is emotional investing. People tend to buy into the market when it rises for fear of missing out on gains, and then they sell … Continue reading Why You Should Be Careful About Reference Points When Investing
It is very common for investors to own securities mostly or entirely from the country they live in. This is known as home bias. For investors living in the U.S., this has worked out quite well historically, while it may have been less lucrative for those living in other regions. However, the U.S. stock market … Continue reading What Are The Best Performing International Stock Markets?
When I first started investing years ago, I didn't really know what I was doing. I wanted to play around with stocks, but I didn't want to risk losing all my money. For that reason, I decided to place some of my money under management by financial professionals. I figured that the experts would know … Continue reading Your Financial Advisor May Be Losing You Money, Study Claims
When you buy a stock, mutual fund, or ETF, you are often asked whether you want to reinvest your dividends. This may seem trivial to you, but it could have a big impact on your investments, depending on how frequently dividends are issued and how large they are in comparison to the share price. To … Continue reading Should You Reinvest Dividends?
I started investing about 11 years ago, and my wife started more recently, in 2017. Though we started investing at different times and at different ages, we both made a lot of mistakes in our first year. Amateur investors often end up losing money when they first enter the market, either because they are overconfident, … Continue reading Amateur Investing Mistakes To Learn From