A zero coupon bond is a bond that doesn’t pay interest. Instead, it is issued at a discount and increases in face value over time. The regular interest payments from … Read more →

A growth stock is a stock that investors believe will increase in value because the issuing company is growing its earnings more quickly than its peers. Companies issue stock to … Read more →

Gross domestic product is an economics term that means the size of an economy. If you added up the value of all of the goods sold and services rendered during … Read more →

Market capitalization is the dollar value of a company represented by its shares owned and traded by the public. Companies can be public or private. If private, the shares are … Read more →

A hedge is an investment expected to offset a potential loss in another investment in the same portfolio. Investors have a variety of tools available to them to manage the … Read more →

Security is a synonym for a financial investment purchased in the markets, be it a stock or bond. The reason we invest is to increase the long-term value of cash. … Read more →

The PE ratio, or price-to-earnings ratio, is a way to understand the value of a company by comparing its earnings per share to the current price per share. Investing in a … Read more →

An index is a statistical representation of the collective price of a group of investments, such as like-sized companies. A stock or bond index is meant to show investors how … Read more →

Dollar-cost averaging is buying a fixed dollar amount of an investment periodically without concern for the prevailing market price of that investment. If you plan to invest regularly, your options … Read more →

Volatility is the relative movement of the price of an investment higher or lower compared to other investments or to an investment index. Investments such as stocks and bonds are … Read more →