What is NASDAQ? NASDAQ is the 2nd largest stock exchange in the world and is focused on technology companies. It is based in New York City, and was created in 1971. NASDAQ is an acronym for the National Association of Securities Dealers Automated Quotations. What is special or unique about NASDAQ? Originally, stock exchanges had …
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Have you ever wondered how much you know about stocks and the stock market – do you think you are a pro, or do you want to learn more about it? Figure out where you stand with this short quiz. You’ll have 5 seconds to choose an answer. Remember to have a pencil and paper …
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What is the S&P 500? The S&P 500 is one of the most popular stock indexes in the world. It was created in 1957 by the company Standard and Poor’s – or S&P – which is how it got its name. The S&P 500 is a way to measure the performance of the stock market …
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What is the Dow Jones Industrial Average? The Dow Jones Industrial Average – or the Dow – is one of the most popular stock indexes in the world. It was created in 1896 by Charles Dow and Edward Jones. It is a way to measure the stock market as a whole by looking at a …
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If I want to invest in stocks, should I invest directly in individual stocks, or use equity mutual funds instead? And what factors should I consider when making my choice? The biggest factor to consider is diversification. If you invest directly in stocks, you would invest in 5, 10, maybe 20 individual stocks at most. …
Read MoreComparison: Direct Investment in Stocks vs Mutual Funds – Pros and Cons
What is an IPO? An IPO, or Initial Public Offering, is a process through which a private company hires an investment bank to sell its stock to the general public for the first time. After an IPO, the stock gets listed on a stock exchange so that it can be bought and sold like any …
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Howdy Wall St. Willy! In the newspaper I read about diversification. What is diversification anyway? Diversification is investing money in different things instead of investing all of your money in just one or two things. Why would I need diversification? You need diversification to reduce the risk of losing money or getting negative returns. Well, who …
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What is Fundamental Analysis? Fundamental analysis is a type of analysis you could use to identify the companies or stocks you want to invest in. Fundamental analysis takes into account multiple factors and how they may influence the company’s future growth prospects, to see if the company is overvalued or undervalued. There is no way …
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Howdy Wall St. Willy! Sometime ago, we talked about asset classes, and when we talked about that, you said something about portfolio rebalancing. But what is portfolio rebalancing anyway? Portfolio rebalancing (or portfolio re-balancing) is buying and selling securities from different asset classes to maintain the asset allocation that’s right for you. Well, when should …
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Howdy Wall St. Willy! Sometime ago when we talked about yield, you said something about dividend yield. But what is dividend yield anyway? Dividend yield is the rate of return you get through dividend payments from a stock at its current market price. It is expressed as a percentage, just like interest rates. Well, how …
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