There are many different time periods that investors can choose to focus on when considering their investment returns. Some common time periods include daily, weekly, monthly, quarterly, annually, and over the life of an investment. One way to compare investment returns across different time periods is to annualize them. This simply means converting the return … Read more
When you subscribe to something, you’re agreeing to receive ongoing deliveries of it in exchange for regular payments. For example, when you subscribe to a magazine, you agree to pay a certain amount each month or year in exchange for regular delivery of that magazine to your home. Many subscription services offer a free trial … Read more
The term “hold” refers to an investor’s decision to keep a security in his or her portfolio. There are a number of reasons why an investor might choose to hold a security, such as a belief that the security is undervalued or a desire to wait for a better entry point. An investor may also … Read more
An income stock is a stock that pays regular dividends and produces little or no capital gains. Income stocks are usually found in utility companies and other companies that have a stable business model and generate consistent cash flows. What are the two basic types of stocks? There are two main types of stocks: common … Read more
A liquidity premium is the return that an investor earns for investing in a security that is not as liquid as others. The return compensates the investor for the added risk of investing in a security that may be difficult to sell. For example, a company’s bonds may be less liquid than its stock, so … Read more
Investment income is money earned from investments, such as dividends from stocks, interest from bonds, and capital gains from the sale of securities. Investment income is important for two reasons: first, it provides a source of revenue that can be used to fund expenses or reinvest in the portfolio; and second, it can help to … Read more
An undervalued definition is a security that is trading below its intrinsic value. Intrinsic value is the true value of a security, which is based on a number of factors including the company’s financials, future growth prospects, and the overall market conditions. Investors often look for undervalued securities as they believe they are more likely … Read more
Conservative investing is a risk-averse investment strategy that focuses on preserving capital and generating income. Conservative investors typically invest in blue chip stocks, government bonds, and cash equivalents. They avoid high-risk investments, such as penny stocks, and prefer to stick with tried-and-true investments that have a history of stability and profitability. What are 5 different … Read more
An odd lot is a group of shares that is less than the standard number of shares that is traded on an exchange. For example, if the standard number of shares traded on an exchange is 100, then an odd lot would be any group of shares that is less than 100. Odd lots are … Read more
A Certified Valuation Analyst (CVA) is a professional who has been certified by the National Association of Certified Valuators and Analysts (NACVA) after completing a rigorous course of study and passing a comprehensive exam. A CVA is someone who is qualified to provide accurate valuations of businesses and intangible assets. This can be useful for … Read more
