March 2009

Dividend Yield

by ABC editor

Photo Credit mag3737 Check out the introductory post on dividends if you haven’t already done so. The term “dividend yield” or even just “yield” is commonly used when referring to the dividend of a stock or a stock index.  The dividend yield is the percentage which you get by dividing the annual dividend payments (total […]

Online brokerages are companies that allow you to set up an investment account with them and buy and sell investments.  The purpose of setting up one of these accounts is for someone who is a “do-it-yourself” investor and can buy investments without the help of an advisor.  An investor can have an advisor and still […]

Most investors own bonds via mutual funds or a target retirement fund.  Bonds are thought of as a very safe investment compared to stocks because their principal amount doesn’t change.  If you buy a $5,000, 10 year bond paying 6%, then in 10 years you will get your $5,000 back plus interest.    Seems safe […]

The traditional IRA investment account is a retirement savings account which is fairly similar to the 401(k) plan in that all contributions are tax-deductible.  In other words, if you contribute money to a traditional IRA that you have already paid tax on, then the contribution will generate a tax rebate for you. Any earnings of […]


by ABC editor

Inflation is a measure of average price changes of goods and services over a period of time expressed as a percentage.  The statement “inflation was 3% last year” means that cost of living for the average person increased by 3% for that year. How is it measured? Inflation is usually measured using the [consumer price […]

The consumer price index is a measure of the average price of various goods and services consumed by households in America.  It is intended to represent the spending by the average city-dwelling American on a typical basket of goods and services. The CPI is similar to a stock market index in that the actual number […]

In a previous post, the “market” order was discussed – if you haven’t done so, please read that post first. If you want to buy an ETF (exchange traded fund) or a stock online,  it is important to learn about market orders and limit orders.  One of the potential problems with a “market” order is […]