2
votes
1answer
233 views

Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
10
votes
4answers
2k views

Making your first million… is easy! (??)

I've seen several people claim "making a million dollars isn't THAT hard these days". Heck, I've seen it here on this forum. Being a complete beginner with investing, business and finance, I wonder ...
11
votes
7answers
1k views

What is the difference between speculating and investing?

I keep hearing people saying that a speculation is NOT an investment, but isn't it really just investment with high risk?
8
votes
1answer
120 views

What is a “closed-end fund”? How is a closed-end fund different from a typical mutual fund?

I recently ran across the term "closed-end fund", but the author didn't explain what it was. What is a "closed-end" fund vs a typical mutual fund, and are there advantagets/disadvantages to each?
3
votes
1answer
430 views

What are prize bonds? Are prize bonds a good investment?

What are prize bonds? Are prize bonds a good investment?
6
votes
1answer
425 views

What does pink-sheet mean related to stocks?

I see the term pink-sheet mentioned a lot in context of stocks. What does it mean?
25
votes
3answers
54k views

Can someone explain a stock's “bid” vs. “ask” price relative to “current” price?

In my online brokerage account, I want to buy a particular stock and I see : Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is : 13.22 Can someone explain what the bid and ask ...
7
votes
1answer
1k views

What does CAGR mean when it is used in relation to a company stock?

I saw this abbreviation CAGR related to stocks and financial statements and I am not sure what it is. Can you please explain it to me?
11
votes
2answers
523 views

What is value investing? What are the key principles of value investing?

What is value investing? What are the key principles of value investing? Is there evidence indicating whether value investing results in higher returns, or lower risk, compared to other styles of ...
7
votes
2answers
3k views

What does market cap (or market capitalization) mean?

When I look at my Google finance page, and I look at a company, lets say Citigroup for example, and I see that the market cap is 83.45 billion, what does that mean? Does that mean Stock Price X ...
23
votes
3answers
490 views

What are “preferred” stocks? How are they different from normal (common) stocks?

What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?
9
votes
2answers
2k views

What is a stock warrant? How do warrants work?

What is a stock warrant? How do warrants work? I've been told they are similar to options; how? Then why not just call them options - what makes them different?
6
votes
2answers
228 views

What are futures and how are they different from options?

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price. How is this different from an option to buy a share?
9
votes
1answer
1k views

How exactly do dividend reinvestment plans (DRIPs) work?

And where can I find out what companies offer them? Are there good resources for information on these plans?
8
votes
4answers
265 views

What is the theory behind diversification? Why does it work?

We are told always that diversification in a portfolio is good. "Don't put all your eggs in one basket." But is there mathematical theory behind diversification to back up the advice?
11
votes
2answers
316 views

What's an Exchange-Traded Fund (ETF)?

I've been hearing a lot about exchange-traded funds, or ETFs. What exactly are they, and how would I use them?