What is Common Stock?
Often referred to as equity, common stock represents ownership in a publicly traded company. It entitles you as an investor to a portion of the company’s earnings and allows you to receive dividend payments when paid out.
Often referred to as equity, common stock represents ownership in a publicly traded company. It entitles you as an investor to a portion of the company’s earnings and allows you to receive dividend payments when paid out.
CAGR stands for Compound Annual Growth Rate and is the measure of an investment’s annual growth rate from the beginning investment balance to the end balance.
An index is a means by which to track the performance of a basket of securities through a standardized metric. There are various indexes that capture specific areas of the market such as the S&P 500, Dow Jones Industrial Average(DJIA), Nasdaq, Russell 2000(RUT) and many others.
Short for Exchange Traded Fund, ETFs are currently one of the more popular investment products for investors to get started with and now there are thousands to choose from to fit your investment strategy.
A mutual fund is a financial vehicle where various investors elect to pool their money together with a designated fund manager who will select stocks or other investment securities for the fund.
A small-cap stock is a company whose market capitalization is between $300 million and $2 billion. These companies are smaller in market value but will often still be included in the investment strategy for an equity growth portfolio.
A mid cap stock is a company whose market capitalization is between $2 and $10 billion. These companies will often be included in the investment strategy of various equity growth funds.
A large-cap stock is a company with a market capitalization value of at least $10 billion and will include well established companies who are often deemed as industry leaders.
The market value reflects how the whole investing community puts a price to a business or particular asset in the open market itself. Likewise, it captures how investors feel about the future prospect of a company since it is an aggregate of estimated future returns for the stock of a company.
Intrinsic Value much like Market Value is used by investors and financial analysts to measure the worth of an asset.
Diversification is a word that is talked about frequently in investment circles and among those just getting started. This a word that shouldn’t scare anyone but can take on many different meanings and levels when constructing your portfolio.
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