Investing for Beginners

More in Investing for Beginners

Advantages & Disadvantages of Money Market Accounts

A money market account, or money market deposit account, is a government-insured bank account that pays relatively high interest rates and provides cash withdrawal privileges. This type of account offers both savings and checking tools at higher yields than regular savings and ...

What Effect Does a Spin-off Have on a Stock Price?

When a company does a spin-off, a portion of that company's business becomes a new company. Since the spinner will now be a smaller company, it makes sense that the share price will drop. However, the "spinnee" company will have its own value. Investors in a company ...

Tax Payable vs. Deferred Income Tax Liability

As an investor, you should know that most companies keep two sets of books, but not for any nefarious reasons. One set reflects the requirements of financial reporting, while the other keeps track of accounts from the point of view of the Internal Revenue Service. Corporations ...

How to Calculate the Implied Value Per Share of Common Equity

Investors can analyze a company’s profitability by calculating the implied value per share before purchasing common stock. The implied value per share reveals how much of the company’s profits are flowing down to the stockholders. Better known as earnings per share, ...

The Relation of Interest Rate & Yield to Maturity

Some bond-related terms are used as synonyms, which can make investment jargon confusing to a new bond investor. The yield to maturity and the interest rate used to discount cash flows to be received by a bondholder are two terms representing the same number in the bond pricing ...

What Causes a Decrease in Owner's Equity?

Owning equity in a company means that you own all or part of it. The owner’s equity account is listed on the balance sheet for accounting purposes. There are a few reasons for a decrease in owner’s equity.

Is a Negative Beta Coefficient More Risky Than a Positive in the Stock Market?

When researching stocks for investment, take a glance at the "beta" number. This value measures the volatility of a stock compared with the volatility of the market as a whole. A high beta means the stock price is more sensitive to news and information, and will move ...

Importance of Mutual Funds

Mutual funds pool money from individuals and organizations to invest in stocks, bonds, and other assets in different industry sectors and regions of the world. You can buy whole or fractional fund units directly from fund companies or through your broker. The price of each ...

What Is the Rate of Return on an Index Fund?

When you invest in mutual funds or exchange-traded funds -- ETFs -- there is no way to predict the future return that a fund will pay. But you do know exactly how an index fund will choose the stocks or bonds it invests in. You pick an index fund based on which market index ...

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.