Short selling a stock is taking an investment position that will rise in value if the targeted stock falls in price. Short selling is one of the most widely misunderstood … Read more →

A large cap stock is a stock issued by a company whose market capitalization is much larger than most of the companies traded on the same stock exchange. Large cap … Read more →

A small cap stock is a stock issued by a company whose market capitalization is much smaller than that of the largest companies traded on the same stock exchange. Small … Read more →

Inflation risk is the risk that an investment will not grow fast enough to offset the lost purchasing power of your invested cash. Inflation is the rising cost of goods … Read more →

A money market fund is a type of low-risk mutual fund investment that holds mostly short-term public and private debt. Mutual funds aim to grow the cash placed them by investors, … Read more →

A bond is an interest-paying loan made to a company, government or nonprofit organization by an investor or investors. Most large concerns, public or private, occasionally need capital. They can … Read more →

Yield is what you earn from an investment in the form of regular, periodic income. Investments produce cash for the investor two ways: growth and income. Growth is a rise in … Read more →

A Roth IRA is a type of individual retirement arrangement (IRA) that allows tax-free withdrawals on income and growth. Most people are familiar with employer-based 401(k) retirement plans and their … Read more →

Diversification is the practice of owning a wide variety of investment types in order to reduce risk. Investors sometimes find the idea of diversification daunting, but it’s nothing more than … Read more →

An asset or investment is underwater if the market value falls below what the owner paid for it. The purpose of owning an investment is to earn income from it, sell … Read more →