Investing

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.

See Full Answer
Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • Why Is Shareholder Wealth so Important?

    Q: Why Is Shareholder Wealth so Important?

    A: Shareholder wealth is important because the shareholders own the company, and in a capitalist society, the measure of a company's value is in the profits it generates for the owners. The primary goal of a for-profit business firm is maximizing shareholder wealth, according to About.com.
    See Full Answer
    Filed Under:
  • What Is a Blue Chip Company?

    Q: What Is a Blue Chip Company?

    A: Blue chip companies have an established reputation, popularity and secure long-term growth, according to the U.S. Securities and Exchange Commission. These companies provide blue chip stocks that the Dow Jones Industrial Average uses in its index, according to the U.S. Securities and Exchange Commission.
    See Full Answer
    Filed Under:
  • What Is the Difference Between a Command and a Market Economy?

    Q: What Is the Difference Between a Command and a Market Economy?

    A: The government has more authority in a command economy, while private citizens and companies have more influence in a market economy, according to Infoplease from Pearson Education. The government directs the types and levels of production in a command market. Private producers choose the amount of goods to supply the market in a market economy.
    See Full Answer
    Filed Under:
  • What Is the Difference Between Assets and Liabilities?

    Q: What Is the Difference Between Assets and Liabilities?

    A: An asset is something a business owns that helps produce economic value going forward, according to Chron Small Business, and a liability is an obligation to pay money to a business or entity going forward. Companies sometimes opt to sell assets to pay off liabilities.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What Is "speculation" in the Stock Market?

    Q: What Is "speculation" in the Stock Market?

    A: According to the CFA Institute, speculation in the stock market is the practice of engaging in high-risk trading in order to make a significant profit quickly. Speculative trading is not based on traditional analysis of a stock's long-term value and stability. However, it is not conducted haphazardly and involves analysis of short-term variables, such as price fluctuations and market volatility.
    See Full Answer
    Filed Under:
  • How Does Inflation Affect Interest Rates?

    Q: How Does Inflation Affect Interest Rates?

    A: As inflation occurs, the central bank is able to adjust interest rates, thus encouraging economic growth. Without adjusted interest rates, there would be little growth during times of inflation as people's purchasing power becomes less. When interest rates are lowered, people are able to continue to purchase regardless of the fact that the purchasing power has lessened.
    See Full Answer
    Filed Under:
  • What Time Does the NASDAQ Open?

    Q: What Time Does the NASDAQ Open?

    A: NASDAQ Trader reports that the NASDAQ officially opens for trading at 9:30 a.m. Eastern Standard Time. NASDAQ begins preparing to open at 4 a.m. when a computer starts entering the trades and orders that were received after market close the day before, according to HowStuffWorks.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under: