What Are Bonds & How Do They Work?

A bond is a loan to a company or government. Bond investors lend money for a set period, with the promise of repayment of that money plus interest. The most common types of bonds include corporate bonds and municipal bonds. …

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What Is Futures Trading?

Futures trading is the buying and selling of futures contracts. Futures contracts are standardized legal agreements where a buyer and seller agree to exchange a commodity at a specific price at a particular future date. While this may sound simple …

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How Many Trading Days in a Year?

The average number of trading days for U.S. markets is about 252 days, but not every year has 252 trading days. For example, the 2020 trading year consists of 253 trading days. In the United States, the New York Stock …

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Active vs. Passive Management

There are two types of portfolio management: active and passive. Which is better is a hotly contested question within the field of investment management. Like most hotly-contested questions, the answer is complicated. Each type of portfolio management has its advantages …

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Is Stock Trading Gambling?

Is stock trading gambling? Yes and no. Stock trading is gambling in the sense that certainty is not guaranteed. At the same time, assuming you’re investing in a financially savvy way, stock trading is nothing like gambling since, unlike gambling, …

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Boom & Bust Cycles: What Are They?

The boom and bust cycle, also referred to as the business cycle, is an economy’s alternating periods of growth and decline. During the boom period of the cycle, the economy grows, jobs are plentiful, and the stock market provides high …

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How Do You Know Which Stocks Pay Dividends?

You can quickly identify stocks that pay dividends by using screening tools provided by your broker or utilizing free online services. For more detailed information, one should consult the dividend policy disclosure in a company’s annual report. Dividends and Why …

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Will the Stock Market Always Recover?

A stock market consists of publicly traded companies in multiple industries. These companies are representative of the health of an economy. As long as there is economic growth, the stock market will always recover and rise to new highs over …

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