Mutual Funds

Money Market Mutual Funds: How To Invest

There are two basic types of money market funds, taxable and tax-free. Taxable money market funds can be further broken down into different categories, including: General-purpose funds that are available to all investors directly from sponsoring mutual fund companies Stockbroker-affiliated general-purpose funds, also available to all investors, but which are often provided as part of […]

Stocks

Fundamental Analytics Explained: Cash Flow Statements

The cash flow statement helps investors answer questions like: Is the company generating enough cash needed to fund growth? Is growth outpacing cash generation, requiring additional financing? Is the company generating enough cash to cover its short-term needs? In times of easy credit, companies may be able to patch over cash flow interruptions with interim […]

Mutual Funds

Money Market Mutual Funds: Risks and Rewards

It’s easy to invest in a money market account. You can open an account and make deposits and withdrawals virtually any time you want. Your money is not tied up for any specific time period. Investment Strengths Check-writing and other privileges Money market funds typically offer such services as check-writing privileges and/or the ability to […]

Stocks

Fundamental Analytics Explained: Income Statements

Reading an income statement: Revenues and Costs The income statement gives a more detailed answer to a critical question for any investor: is the company making money? A well-known expression the bottom line comes from income statements. Specifically, it refers to a company's net income. While this is obviously an important figure, it's worth reviewing […]

Options

Understanding Option Greeks and Dividends: Theta

Theta refers to time decay and is the amount a theoretical option's price will change for a corresponding one-unit (day) change in the number of days to expiration of the option contract. Each moment that passes melts away some of the option's value. Not only does the premium melt away, but it does so at […]

Trading

How are “Hard-to-Borrow” fees calculated?

A hard-to-borrow fee is an annualized fee based on the value of a short position and the hard-to-borrow rate for that position. The fee is charged on a pro-rated basis depending on how many days you hold the position short. It will be assessed to your account at the end of the month or upon […]

Options

Protective Put Strategy

You buy stock because you're bullish and expect the stock's price to go up. Since you're bullish, chances are you aren't too preoccupied with the downside. But as we all know, markets can shift quickly. Puts are a handy tool to help lock in profits on your existing positions in the event of a sudden […]

Options

Understanding Option Greeks and Dividends: Vega

Vega is one of the most important Greeks, but it often doesn't get the respect it deserves. Vega is the amount a theoretical option's price will change for a corresponding one-unit (percentage-point) change in the implied volatility of the option contract. Simply stated, Vega is the Greek that follows implied volatility (IV) swings. Don't forget […]

Mutual Funds

Mutual Funds Tax Guide

What are mutual funds? A mutual fund is an investment company that pools money from many people and invests it in stocks, bonds, or other securities. Each investor owns shares, which represent a part of these holdings. Investors can buy shares (or portions) directly from the fund or through brokers, banks, financial planning professionals, or […]

Mutual Funds

Mutual Funds Tax Guide

What are mutual funds? A mutual fund is an investment company that pools money from many people and invests it in stocks, bonds, or other securities. Each investor owns shares, which represent a part of these holdings. Investors can buy shares (or portions) directly from the fund or through brokers, banks, financial planning professionals, or […]