Explore the ABCs of mortgage-backed securities and risks they bear, find out how to calculate the average life of MBS and learn about prepayment assumptions.
What is market cap? Why is it helpful to investors? Learn who are the top-runners to reach the 13-figure valuation. Will it be Apple, Alphabet, Microsoft or their strong challengers?
The bid-ask spread is the difference between the offer and the bid price of any security, such as stocks, commodities, derivatives, etc. Learn how to calculate the bid-ask spread.
Zombies are heavily indebted companies. Learn about biotech zombie companies, how they appear, chase their goals, behave and come to life.
Diversification explained: myth of the 30-stock portfolio, the role of industry, size and style and how to make sure you are not missing out on market opportunities.
2007–2008 hit the US economy hard. The global financial crisis came out of nowhere for most Americans. Few people were able to predict the crash, even fewer actually managed to make money on it. It took years and trillions of dollars for the economy to recover.
Learn about simple and compound interest rates: how they are calculated and charged. What are the key differences? How can compounding work for and against you?
When you seek a business to invest in, there are two essential concepts you should necessarily interpret: market value and book value. They are crucial in the sense that they help you evaluate an investment properly. Whether it is worthwhile to invest or it does not depend on your conclusions.
Paying for education, buying a car or a house are costly investments. Some people are sure they can’t go without a loan to finance these purchases. But there are some ways to avoid borrowing, and here they are.
The gold markets beckon investors. And it’s not for nought – the royal metal is a secure way to stay afloat during inflation, when the world’s currencies lose their value. Top advisors advocate for commodities in any portfolio, because they decrease risks.
Economies of scale occur when goods or services are produced in larger quantities but with less costs. A company can afford to reduce inputs harmlessly as it grows and increases production units. In essence, economies of scale generate economic growth.
A bearer bond, often referred to as a coupon bond, is an unregistered bond. In comparison to an ‘ordinary’ bond, it fully belongs to a person who holds it. Not a single ownership record exists. Whoever keeps it is considered an owner.
Life insurance is an issue that may pose a real challenge and make you wonder what to choose: a permanent policy or a term one. And here you find yourself guessing, which means I won’t be throwing my money away.
Companies from one industry act alike. Their performance is often explained by the type of products they offer. Such companies are not allies. Instead, they play against each other to win over the customers. They invent marketing strategies, pour money into advertising and try to stand out among the others.
What do we know about cash and when can we regard it as a call option with no time limit and expiration date? Let’s figure out the possible outcomes.
Budgeting one month ahead can save you the trouble of worrying about debts and spending. Learn how to build this financial action plan in three simple steps.
Looking for alternative methods to finance your business? Explore the 5 most popular options and choose the one for you.
Value investing was introduced by Benjamin Graham in the 1930s and adopted as a strategy by the prominent and wealthy investor Warren Buffett. Learn the pros and cons of the concept and decide if it suits you.
Well, there are a number of reasons why a company may decide to go private. Today, we’ll examine the major ones and show you the pros and cons of such an important transition.
Starting a company is only half the battle. Keeping it viable is much more challenging. So many problems can knock it out of business. Here are the top 5 risks your small company is exposed to.