How to Get Started with Investing: Types of Investments Explained What should I know before investing? Before investing, you should understand the basic types of investments and how they work. You should also be aware of the risks involved in investing, and know your own risk tolerance. The most common types of investments are stocks, … Read more
An investment that does not qualify for special tax treatment. For example, certain types of investments, such as those in life insurance contracts and annuities, qualify for special tax treatment that allows the investor to defer taxes on the investment income. Other investments, such as those in collectibles and precious metals, do not qualify for … Read more
Upper management refers to the executives and other senior leaders in an organization. These individuals typically have the authority to make decisions that affect the entire company. Upper management may also be responsible for setting the company’s strategic direction and making decisions about how to allocate resources. Why is investment management important? Investment management is … Read more
A rally is a period of sustained increases in the prices of securities. A rally may be caused by a variety of factors, including positive economic news, an influx of buyers, or simply a lack of sellers. Rallies can last for days, weeks, or even months, and can occur in both bull and bear markets. … Read more
A limited discretionary account is an account where the account holder has granted someone else permission to make investment decisions on their behalf, but only within certain parameters. This means that the account holder has given the other person discretion over which investments to make, but has set limits on how much they can spend … Read more
Value averaging is an investment technique in which the investor commits to investing a fixed dollar amount into a security or securities at fixed intervals. The dollar amount invested is adjusted upwards or downwards based on the performance of the security or securities in order to maintain a desired average price. For example, let’s say … Read more
Dollar-cost averaging (DCA) is an investing technique used to reduce the effects of market volatility on the purchase price of a security. When using this technique, an investor buys a fixed dollar amount of a security at fixed intervals, regardless of the security’s price. By buying the security in small increments over time, the investor … Read more
When the stock market opens for the day, the opening price is the first price at which shares of a particular stock are traded. The opening price is important because it set the tone for the rest of the trading day and can be used to gauge market sentiment. How do you technically analyze stock? … Read more
The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities and cash between broker-dealers. ACATS allows customers to transfer their accounts, including securities and cash, from one broker-dealer to another without having to sell their securities or close their account. ACATS also allows broker-dealers to transfer customer accounts to … Read more
. Types and Asset Classes of Financial Instruments What is the most important financial instrument? There is no one “most important financial instrument” – rather, there is a range of financial instruments that are important, depending on the specific situation. Some of the most important financial instruments include: -Bonds: Bonds are debt securities that represent … Read more
