Fixed Income Investments

Fixed income investments are a type of investment or investment asset class that is made up of securities that have a fixed price and pay some sort of interest at regular intervals.  Here are some examples of fixed income investments: Bonds – There are many different types of bonds but one of the more famous […]

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Foreign Exchange Trading

Foreign exchange or forex rates determine what you get when you swap one currency for another. Tourists going abroad need foreign exchange, an import firm has to keep up with currency conversion rates to pay for purchases overseas, and multinationals need to keep tabs on multi-currency operations. Currencies are actively traded in the fast-paced and […]

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What Is Private Equity Investment?

Private equity is capital infused into a company without going through an issue of publicly traded stocks or bonds. The money comes from well funded investors – be they individual high-net worth investors or venture capital funds – who seek early entry into a promising start-up in need of seed capital or a young firm […]

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Financial Statements Analysis

Financial statements give a snapshot of a company’s operations and its financial health.  A study of the four main statements – the balance sheet, income or earnings statement, the cash flow and statement of shareholder’s equity – reveals significant trends to figure out if a company is worth investing in. For the purpose of this […]

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Growth Investing – A Short Explanation

[Two common philosophies of stock investing are “value investing” and “growth investing” – value investing is covered in another post] Growth investing is a strategy by which an investor buys stocks that are forecast to grow at rates exceeding that of its peers or the overall stock market. Growth investors do so by identifying companies […]

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Christmas Stocking Stuffer Idea – A Cheap Beginner Investing Book!

This is my review of the awesome book for beginner investers called Investing Made Simple written by Mike Piper who is the author of the investing blog Oblivous Investor. I’ve highlighted both Mike’s blog and book before and I was quite happy to review the book for him. I think it’s a great resource for […]

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“Top Down” Investment Approach

If you read the business pages or investment in mutual funds you will often hear portfolio managers described as “bottoms up investors” or “top down” in their investment approach.  Here is an explanation of “top down”. The investor using a top down investment approach looks at the big picture. Macro economic variables such as the […]

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“Bottoms Up” Investment Method

If you read the business pages or investment in mutual funds you will often hear portfolio managers described as “bottoms up” or “top down investing” in their investment approach.  Here is an explanation of “bottoms up” (and no, it nothing to do with alcohol). In the bottom up investment approach, the details matter. An investor […]

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Calculating Taxes On Capital Gains and Capital Losses

Capital gains taxes In a previous post we discussed how a capital gain occurs when you sell an investment for a profit.  All capital gains are taxable in the year that you sell your investment so you can’t normally “defer” the gain to a future year and you also don’t have to worry about any […]

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Calculating Capital Gains and Capital Losses

If you sell an investment such as a stock or mutual fund in a taxable investment account, then you might have to pay capital gains taxes on any profit that you make.  This does not apply to a tax-deferred retirement accounts such as 401(k) plan and Roth IRAs. If you make a profit on the […]

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Stock Purchase – Bid/Ask Prices

This is a more advanced post concerning buying and selling stocks and etfs.  If you aren’t familiar with the subject then you might want to start with market orders and limit orders. If you ever have need to buy/sell individual stocks or exchange traded funds then you should be familiar with the different types of […]

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More Exciting Facts About Stock Indexes

If you are not familiar with stock indexes then please read this post which explains what they are first. What is a stock index? Stock indexes come in a variety of shapes and sizes.  The most common types of stock indexes are market value-weighted (S&P500) and price-weighted indexes (Dow Jones).  Some determining factors of various […]

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Tax-Free Municipal Bonds

If you are looking for a type of investment that will maintain your capital while getting a tax-exempt income flow, municipal bonds might be a possibility for you. Municipal bonds are debt obligations issued by smaller government entities such as cities or a local school board. Once you purchase a municipal bond, you’re lending money […]

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What is Value Investing?

[Two common philosophies of stock investing are “value investing” and “growth investing” – growth investing is covered in another post] Most investors consider value investing to mean buying cheap or discounted stocks, but there is more to this investing strategy. Value investing deals with the buying of stocks that have been neglected by the market […]

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Carnival of Money Hackers – 81st Edition

Welcome to the 81st Edition of Carnival of Money Hackers. Moolanomy.com was kind enough to let ABCs of Investing host this week so enjoy the posts and the pictures. Investing Photo Credit:Bob Merco Zachary Scheidt presents Stage is Set for IPO Rebound posted at ZachStocks. ABC presents REITs (Real Estate Investment Trusts) – Invest In […]

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REITs (Real Estate Investment Trusts) – Invest In Real Estate The Easy Way

Real Estate Investment Trusts or REITs are a type of investment that invests in real estate (as the name suggests).  These investments trade like stocks and exchange traded funds on stock exchanges but you can also buy mutual funds which invest primarily in REITs.  Typically these investment funds invest in large commercial realty projects such […]

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