Stocks and Bonds : The Differences
Stocks and bonds, like Frick and Frack and Abbot and Costello. You rarely think of one without the other. But what exactly are the differences between stocks and bonds? Actually, though they do share some core similarities, in many ways they are very different types of investments. Like stocks, bonds are sold by corporations and can be traded on the open market. Bond interest rates also fluctuate and are subject to the volatility of market conditions. But the similarities tend to end there.
Small Cap Stocks : Big Perks
Investing in small cap stocks can actually have big benefits. In fact, some of the benefits of small cap stock trading cannot be touched by large cap investors.
Dow Jones Industrial Average : How’s the Stock Market Doing?
If you have ever listened to a business report on the news, you have heard of the Dow Jones Industrial Average. Established in 1896 by Charles Dow, it’s an icon in the trading industry. But what exactly does it mean?
Who Are Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac are two government sponsored entities (GSEs). GSEs are set up by the government but run privately. These two GSEs were started to back up mortgages, making it easier for banks to dole out more mortgages with greater risks and lower rates to more families. Fannie Mae and Freddie Mac combined now own or back up almost half of all mortgages in America.
Portfolio Diversification : How to Make Your Money Work for You
It is difficult to build something without having a solid foundation to work on. Choosing to build a home atop a sink hole is as apt to failure as building a town without a fire station. In order to move on to bigger and better things, you must first make sure that what you’ve already worked on is sturdy on its own. The same goes with your stock portfolio. If you want to invest effectively, you have to start on the right foot. This is why it’s important to start off with a diversified portfolio.
