How do you make your investment decisions and where do you get your information? If you’re like most of the people I know, you look to the experts.
Category: Investing
Sector weightings explained.
Before you buy into a mutual fund, you should find out where the mutual fund is putting most of its money. You can do this by looking up the sector weightings. Sector weightings will show you the amount of money that this fund has put into each of the different sectors of the economy. You should never buy into a mutual fund before you know and understand what the sector weightings of the mutual fund you’re looking at mean.
While you may have heard the terms “bull market” and “bear market”, most people do not know what the terms actually refer to. In some cases, these terms are referring to the options market and not to the stock market directly. The bull spread, for example, has to do with what the trend is for options.
What is a professional money manager?
Now you don’t have to make any investment decisions.
What is an option?
An option is an agreement that a commodity or stock will be available for purchase at a set date.
What is a mutual fund?
Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the “investment adviser.”
What is a derivative?
Invest in commodities without buying the commodities themselves.
What are stripped bonds?
Stripped U.S. treasury bonds explained.
Stripped U.S. treasury bonds are bonds that are generally sold at lower prices than their face value. If you can find a stripped bond to purchase, there is a chance that you will get more money out of the deal than you would if you were buying the bond outright. There are a few key differences, however, due to the way in which treasury bonds are stripped down.
Warrents are similar to call options, although there are a few key differences. However, the most important thing to keep in mind is how much they are similar to call options. Just like buying a call option, when you buy a warrant, you are buying the right to purchase a particular security (stock, bond, or otherwise) at a particular price and during a certain time frame. Even if the stock is worth more at the end of the timeframe, you are still able to buy it at the lower price – which means that there is a chance for profit if the stock rises above the warrant price.
Variable annuity explained
A great retirement option for the long-lived.