At a Glance: A 401 Retirement Plan is a savings plan established under Section 401 of the US Internal Revenue Code. There are two main types: the 401(a) plan, commonly used by government agencies and non-profit organizations, and the 401(k) plan, offered by private-sector employers. In a 401(a) plan…
At a Glance: Investing involves committing money and time to an asset to generate profit. The legal age to start investing in stocks is generally 18, but some states have higher age restrictions. To begin, find a suitable brokerage account. Consider factors like educational resources, user interface…
At a Glance: Cash flow from investing activities is a section in the cash flow statement that tracks the cash spent or generated from various investment activities over a specific period. It includes buying/selling assets and securities. Negative cash flow doesn’t always indicate poor performa…
At a Glance: Life insurance is a form of insurance where you pay monthly premiums to a company, and upon your death, the company pays out a sum of money to your loved ones. The premium amount is determined by factors such as the desired death benefit, type of policy (term or permanent), and your [&h…
At a Glance: Stock options can be used for speculation or as equity compensation. In the investor context, they are contracts to buy or sell a stock at a fixed price. The goal is to profit from the difference between the fixed price and the market price. Companies also offer stock options to employe…
At a Glance: In stock markets, a bull market refers to an upward trend where the average stock value is increasing, typically during a thriving economy with high consumer confidence. In contrast, a bear market is a downward trend where the average stock value is decreasing, often during an economic …
At a Glance: The S&P 500 is a widely recognized stock market index that measures the performance of 500 large companies listed on U.S. stock exchanges. It serves as a benchmark for the market and is commonly used by investors. Investing in the S&P 500 can provide exposure to a diverse rang…
At a Glance: Intangible assets are non-physical resources that hold long-term value for a business, such as brand recognition, patents, copyrights, and customer relationships. They complement tangible assets and can enhance a company’s value. Intangible assets can be damaged, have various calc…
Most investment strategies fall into two overarching categories: passive vs. active investing. This might be painting with a broad brush, but there are two schools of thought in the world of managing your portfolio. Active investing means taking a more concerted role in how your portfolio performs, …
At a Glance: The stock market is a marketplace where shares of publicly and privately owned businesses are bought and sold. Investors can make money through dividends, compound interest, or by selling stocks at a higher price. The stock market can go up or down based on factors like interest rates a…