An investment grade bond is a bond that meets or exceeds minimum investment risk levels established by a private risk-rating agency. One way to establish the risk of a bond … Read more →

The Dow Jones Industrial Average is a stock index that represents some the largest companies in the U.S. economy. The Dow Jones Industrial Average, often called the “Dow,” is an … Read more →

NASDAQ is a stock index that broadly represents the technology sector of the U.S. economy. Beginning in 1971, the National Association of Securities Dealers (NASD) began to use an electronic … Read more →

Inflation is the rising cost of goods and services in an economy. Inflation happens when prices rise. The opposite is deflation, which is falling prices. Generally, prices rise for two … Read more →

A bear market is a market in which selling predominates, resulting in a marked decline in asset prices. Stock markets go up and down every day. Historically, prices have trended … Read more →

Total return is the percentage gain (or loss) of an investment when counting both price change and income. People typically measure investments by the change in price over a period … Read more →

Rate of return is the gain (or loss) of an investment in a given time frame, usually expressed as a percentage change over 12 months. Investors make investments in order … Read more →

The federal funds rate is the benchmark interest rate set by the U.S. Federal Reserve. Governments issue currencies, such as the U.S. dollar, euro and yen. Nevertheless, central banks control … Read more →

A high-yield bond is a bond that pays higher-than-average amount in interest. Typically, this is because the bond issuer has a lower-than-average credit rating. A high-yield bond is exactly what … Read more →

Common stock is a share in a corporation traded on a stock exchange and owned by the public. Corporations issue common stock to raise money to fund operations, growth or … Read more →