Investing

A:

A person can increase capital gains by selling particular assets at an amount greater than the purchase price, notes the Internal Revenue Service. These assets must be held for at least one year prior to being sold on the open market.

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  • What is the difference between direct and indirect investments?

    Q: What is the difference between direct and indirect investments?

    A: Direct investments are those in which the investor owns the particular assets himself, while indirect investments are investments made in vehicles that pool investor money to buy or sell assets, according to Red Mountain Asset Research. A direct investor invests in the asset itself, whereas an indirect investor invests in the expertise of the people using his investment money, notes the National Association of Real Estate Investment Trusts.
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  • How can I increase my capital gains?

    Q: How can I increase my capital gains?

    A: A person can increase capital gains by selling particular assets at an amount greater than the purchase price, notes the Internal Revenue Service. These assets must be held for at least one year prior to being sold on the open market.
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  • What causes stock market prices to fluctuate?

    Q: What causes stock market prices to fluctuate?

    A: Psychology, as much as business basics, dictates the rise and fall of stock prices, says HowtheMarketWorks.com. From a business standpoint, the Federal Reserve System, the value of the dollar, inflation, deflation and politics are all major factors that make stock prices fluctuate, reports StockMarketPrimer.com.
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  • Why is investing important?

    Q: Why is investing important?

    A: One of the main reasons investing money is important is that it helps to create more money. As opposed to just saving money in a bank account, investing money involves choosing to use that money to buy interest or stock in order to earn a return on the money.
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  • What is capital rationing?

    Q: What is capital rationing?

    A: Investopedia defines capital rationing as the act of limiting the number of new projects or investments undertaken by a company. This is done to slow down the spending of capital so that older projects can be completed or to insure that new projects or investments offer higher rates of return.
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  • How do mutual funds work?

    Q: How do mutual funds work?

    A: Mutual funds work by combining the money of many investors into a single, professionally managed investment. The resulting pool of money can be invested in a wide variety of investments, including stocks, bonds or even other mutual funds.
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  • What is the Wall Street bull statue?

    Q: What is the Wall Street bull statue?

    A: The Wall Street bull statue, officially titled Charging Bull, is a sculpture by Arturo Di Modica that is located in Bowling Green, New York City, at the intersections of Broadway and Morris streets, just a block north of the South Ferry building at the southern tip of Manhattan. The bronze sculpture weighs more than 3.5 tons and measures 18 feet long. Di Modica and friends left the sculpture in front of the New York Stock Exchange, beneath a Christmas Tree as a gift to the world, in December 1989.
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  • How much does the government fund NASA?

    Q: How much does the government fund NASA?

    A: For fiscal year 2014, which covers Oct. 1, 2013 to Sept. 30, 2014, Congress approved $17.6 billion in federal funding for NASA. The agency expects to receive slightly less — $17.5 billion — for fiscal year 2015.
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  • Where can I get up-to-date stock market prices?

    Q: Where can I get up-to-date stock market prices?

    A: Up-to-date stock market prices are available on the websites of financial media sources such as CNN Money, Bloomberg News and the Wall Street Journal. Prices may also be available from websites of individual exchanges, such as the NASDAQ Stock Market.
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  • What is a good ROI percentage?

    Q: What is a good ROI percentage?

    A: A return of 7 percent is considered a good ROI for someone who invests in the stock or real estate markets, notes Joshua Kennon for About.com. A positive ROI range for bonds is anywhere from 2 to 4 percent.
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  • What is a revenue model?

    Q: What is a revenue model?

    A: A revenue model is a system through which a business generates income from its products and services. The revenue model is a key component of any business model. It is a business plan that guides a company in generating income by creating value for its customers.
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  • What was the highest NASDAQ close ever?

    Q: What was the highest NASDAQ close ever?

    A: According to NASDAQ, as of May 2014, the highest NASDAQ closing ever was achieved on March 9, 2000, when the market closed at a record 5046.86. USA Today reports that the highest closing achieved by NASDAQ since was a 4007.09 closing on Nov. 26, 2013.
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  • How do you get started investing in foreign currency?

    Q: How do you get started investing in foreign currency?

    A: Investors can start foreign currency trading by opening a Forex trading account, buying foreign currency CDs, or investing in mutual funds, exchange traded funds or exchange traded notes. Each of these methods comes with different initial investment requirements and unique risks. To be successful in foreign currency investing, it is critical that an investor understand the basic tenets of currency trading and choose the most suitable method of investment.
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  • What are toxic assets?

    Q: What are toxic assets?

    A: "Toxic assets" are assets than cannot be sold and are guaranteed to lose money. Most assets can become "liquid" by selling them off for money. Assets that cannot be sold are "illiquid," as no money can be made from them.
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  • What are crude oil futures?

    Q: What are crude oil futures?

    A: Crude oil futures are contracts related to various types of unrefined oil that are traded in global markets. Crude oil, the most traded commodity in the world, is bought and sold primarily on the New York Mercantile Exchange in the United States.
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  • Why did the stock market crash in 1929?

    Q: Why did the stock market crash in 1929?

    A: The stock market crashed in 1929 because investors had put too much capital into the stocks by borrowing large amounts of money that they did not truly have. Large sums of money were invested in certain stocks because many investors thought that they were a sure thing.
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  • How do savings bonds work?

    Q: How do savings bonds work?

    A: Modern U. S. savings bonds are essentially a loan from purchasers to the U. S. government. They are purchased online at face value through the U. S. Department of the Treasury and accrue annual interest for up to 30 years until they are cashed in. Bonds may be cashed in as soon as six months after purchase, but bonds cashed in early are penalized the last three months' worth of interest.
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  • When was the stock market invented?

    Q: When was the stock market invented?

    A: The first stock market was invented in the 1300s when merchants of Venice began to trade securities received from other governments, according to Investopedia. This was done via slates with information on things for sale, which were carried to meetings with the merchant's clients.
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  • What does a shareholder do in a company?

    Q: What does a shareholder do in a company?

    A: According to Investopedia, a shareholder is any person owning at least one share in a corporation. A shareholder has rights outlined in the corporate bylaws. The shareholder can review the company's financial books and sue for actions that negatively impact the corporation.
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  • What are some good techniques for investing in gold?

    Q: What are some good techniques for investing in gold?

    A: Investment experts recommend investing in gold through a variety of avenues, including exchange traded funds, shares of mining companies, futures contracts and derivatives contracts. Some simply purchase and store gold itself. Each of these strategies comes with unique benefits and risks that are not suitable for all investors. Public interest in gold investment has spiked in recent years, creating both opportunity and risk.
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  • What is the Rule of 85, and how does it affect retirement?

    Q: What is the Rule of 85, and how does it affect retirement?

    A: The Local Government Pension Scheme 2014 reports that the Rule of 85 determines how someone's retirement benefits are decreased if the person decides to retire before the age of 65. Under the Rule of 85, a person's age at the time benefits are drawn plus the number of years of membership in a pension plan should equal 85 or more to avoid a reduction in benefits.
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