Investing is the midpoint between gambling and mattress stuffing. An investment is something that has a positive expected future outcome based on evidence. While investors cannot know everything about any given investment — predicting the future isn’t easy — investors should know enough to have reasonable forecasts about the future.
The dividend discount model is one of the most traditional and conservative methods for valuing an individual stock. A dividend discount model, also known as the Gordon Growth Model, assumes that a stock is equal to the present value of all its future dividend payments.
With Dell Inc. (DELL) in news wanting to go private, the roll of private equity firms is in the spotlight again. Private equity once hid in secrecy; being only a small part of the going-ons on Wall Street, private equity didn’t attract any real attention until the heyday of the 1980s and much later when Mitt Romney, one of the founders of Bain Capital, ran for the presidency.
The exchange-traded fund (ETF) industry is growing at a dizzying pace as new funds are made available to investors each week. The growth in the industry doesn’t come without its growing pains – investors have to carefully look through available ETFs to find one that will work for their investment objectives.
Non-traded REITs are in the headlines as brokers push them for their high yields, and FINRA investigates the investments for their robust claims. Here’s what you need to know about non-traded REITs before you consider an investment. Non-traded REITs 101
The hardest part of investing is doing the dirty work – research. Researching a company requires hard work to uncover vital information about a company and using it to determine which stocks to buy or sell.
Bond credit ratings are without a doubt the most important measures in the bond market. Three major ratings agencies – Moody’s, Standard and Poor’s, and Fitch drive the bond market with their research into bond quality.
The Businessweek magazine of today is very different from the magazine just ten years ago. After becoming part of the Bloomberg empire, the renamed Bloomberg Businessweek is a fantastic American weekly business news publication.
If there is anything good to come from losing money in the stock market, getting a tax benefit for your losses might just be that thing. Recording a loss is as easy as selling a losing investment. Getting the tax benefit, however, requires that you avoid making a critical error – tipping the wash sale rule. The wash sale rule affects all stocks, bonds, mutual funds, and options. Any investment that can generate a taxed capital gain is affected by the wash sale rule.
Tune into any financial media network and you’re sure to hear about fund managers and investment strategists talking about alpha. But what is alpha, and why is everyone talking about it? It certainly has no relation to alpha dogs.