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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What is Foreclosure? Foreclosure is a legal process where your home is put up for sale by the lender. It happens when your home is used as a collateral for a mortgage, but you default and aren’t able to pay back. Then the lender can foreclose your home to recoup the remaining loan amount with …
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Howdy Wall St. Willy! My friend went to get a mortgage to buy a house but the bank that was lending the money to him asked for a down payment. So, what is a down payment anyway? A down payment is money that you pay upfront when you take a loan. For example, you usually …
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Howdy Wall St. Willy! I read about a stock exchange in the newspaper. But what is a stock exchange anyway? Well, a stock exchange is a place where stocks and other kinds of securities are traded, which means they are bought and sold. Can a bond be bought and sold in a stock exchange? Yes, …
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Howdy Wall St. Willy! All this Halloween spooky stuff is making me think about death. So, what will happen to all of my stuff if I die? Well, you can always have a will. What is a will? A will is a document that your write which states all the people who will get your …
Read MoreWhat is a Will? Succession Planning or Estate Planning Basics
Howdy Wall Street Willy. In the newspaper, I read something about EPS. But what is EPS anyway? EPS stands for Earnings Per Share. EPS is the profit, or earnings, of the company for one year, divided by the number of stocks that the company has. Earnings Per Share or EPS = Earnings of the Company …
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Howdy Wall Street Willy, I heard that Facebook had a really high market cap, but what is a market cap anyway? Well, market cap, also known as market capitalization, is the market value of a company. It is basically the number of stocks, or shares, in the company, times the stock price. Market Capitalization or …
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Howdy Wall Street Willy. We talked about EPS, or Earnings Per Share, a little while back. And then you told me about Dividends. But what is a dividend anyway? Dividend is the portion of a company’s profit that is distributed to stockholders. That’s what you receive if you own stock in the company. Well, can …
I heard my parents wanted to do real estate investing. But what is Real Estate investing? Real estate investing is where you invest in immovable property, like a house. Is real estate investing only in houses and apartments? No, that is one kind of real estate – it’s residential real estate. But real estate …
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