Investing for Beginners

Sometimes, you may wish you'd invested in the stock market earlier in life. You probably wonder how much you could've made if you invested when you were much younger, but now it is the time to do...

Stock index funds are a conservative approach to investing in the stock market and can produce attractive profits. High quality bonds are also a conservative investment that in some situations...

Fixed income investment portfolios serve an important role in an investor’s lifecycle. Fixed income investments provide investors with a steady stream of income. This investment portfolio is often...

A Series I Savings Bond (or I bond for short) is an inflation-linked bond sold by the U.S. Treasury. Anyone with a Social Security number can invest in I bonds. I bonds come in paper form...

Interest rates are the costs associated with borrowing money; the higher the interest rate, the higher the cost of borrowing money. The level of the interest rate has many impacts on the economy.

Let's start with the basic definitions: Stocks are part-ownership in a business and a cut of the profits. Bonds are money lent to businesses, governments or other organizations. Risk generally...

Inflation is the rise in the prices of goods and services over a period of time. This means that with inflation, the purchasing power of a dollar a year ago is less than it is today. As a result,...

Finding a high-performing bond fund is no easier than finding a high-performing bond. There are a few things that high-performing stocks tend to have in common that can be helpful when determining...

Credit rating agencies are privately organized companies set up to apply ratings to individual debt securities and entire entities that wish to issue bonds within capital markets. The issuers of...

Bonds are a long-term investment strategy, which are often purchased to help to diversify a portfolio. As with any diversified portfolio, it is vital that the bonds purchased also have diverse...

If we have learned anything during 2008 and 2009, it is that the stock market can be a risky place to invest your money. An ideal allocation accounts for this risk and divides a portfolio...

During times of economic uncertainty, you must adjust your investment portfolio to avoid the risk of losing your money. One of the best ways to protect your money is to buy bonds. Buying bonds can...

The U.S. Treasury Department Bureau of the Public Dept sells Series EE and Series I Savings Bonds to the public in two forms. You can purchase electronic versions online at TreasuryDirect.gov. You...

Stocks and bonds are the two major asset classes owned by most investors, so understanding the differences and relationship between them is important.

Investing is oftentimes thought as a hobby for the rich. Most people believe that to invest you need a college business degree, lots of money and a strong understanding of advanced mathematics....

Credit rating agencies evaluate the ability of a corporate or municipal entity to repay its debt. CRAs also provide ratings to individual debt securities, such as bonds. Both issuers and investors...

Why to buy bonds and to buy bonds are frequently asked questions? Let us consider government bonds. Investors buy such bonds because they offer return with practically no risk to capital. Since...

The primary distinction between preferred stock and bonds is that preferred stock is an ownership stake in a company and bonds are interest-bearing loans to companies, agencies and governments....

Convertible bonds are issued by a company to raise capital; they are hybrid securities that have characteristics of bonds and stock. The bonds pay interest to bondholders but also have a provision...

While the stock market is often considered the best place to invest over the long term, stock volatility and the risk of losing money makes it dangerous for certain investors, especially those...

When the interest you can make from simple savings accounts and bank CDs is no longer enough to meet your financial objectives, it is time to take the dive into the world of investments. Stock...

The term "market value" can be used to describe a couple of different scenarios. The true meaning of the phrase depends on the context in which it is being used, but it is generally used to...

If you are primarily interested in investments that produce income rather than equity growth and with less risk than stocks, you will want to look closely at corporate bonds. As debt obligations,...

If you've managed to save $1,000, you are probably ready to move out of low-interest savings accounts and into an investment with higher returns. You'll find you have a lot of choices. Many people...

There are a variety of investment vehicles to choose from when deciding where to put your money. Before selecting one, you should fully understand all your options so you can choose those that are...

Companies sell bonds and stocks to individual and institutional investors to raise capital. The funds are used to pay expenses, expand existing businesses or branch out into new areas. Bonds and...

If you are looking to build or grow wealth, there are many opportunities available to you, provided you have some cash to invest as well as discipline, patience and critical thinking skills. You...

Money market funds, a type of mutual fund, invest in short-term corporate and government bonds. Under SEC rules. the average maturities of the securities must be under 90 days for the fund to...

Stocks are shares in a company that can be bought by the investor, effectively giving that investor both an ownership in the company and earnings based on the success of the company. Bonds, on the...

Bonds are debt instruments issued by the U.S. government, government agencies, municipal governments and corporations. These entities use the proceeds of bond sales to fund operations. For...

Nearly all forms of investing carry some degree of risk. As a general rule, the higher the potential return of an investment, the greater the risk will be. Consequently, choosing to invest money...

With so many investment options available to every investor, you need to establish a well-thought-out game plan that determines your investment objectives, risk tolerance and time frame for...

A high-yield money market fund is a pool of corporate bonds and other debt instruments paying a higher rate of interest than conventional savings accounts or U.S. government bonds. The funds are...

Historically, during downturns in the stock market, many investors have sold stocks and bought bonds. This is known as a "flight to quality" -- when investors move from riskier investments to...

People who are new to investing are often confused about the differences between stocks and bonds. It is important to understand distinctions before making an investment decision. Stocks and...

You have likely heard that stocks and bonds are your keys to financial success. But you may not have any idea what they actually are and why they are so well-regarded. Here is a brief explanation...

There are a lot of things you can spend your hard-earned money on. One of the smartest choices is to set aside some of your money and begin an investment program. Time is the greatest ally to an...

There are many financial products available on the market today. Due to the risk involved with any investing decision, it is imperative to research the company or entity offering the product and...

Convertible bonds have some of the features of both stocks and bonds. As bonds they are debt instruments where the bond holders earn a fixed rate of interest. The conversion feature allows the...

A portfolio is a collection of investments held by an individual or institution, which is either managed by the investor themselves or by financial professionals. Portfolios usually consists of a...

Learning how to buy stocks and bonds is one way to protect your financial future. Historically, stocks and bonds have offered the highest returns on money. Of course, there are always risks when...

The investment committee of an insurance company instructs the risk management department, stock and bond analysts and traders on how to work together to invest money according to the approved...

The money market is where governments and corporations borrow money for short-term needs by issuing bonds that have a maturity of six months or less. It's not a central exchange like the stock...

Investors can be overwhelmed with the vast investment options that exist. For those who are concerned with possible loss of their capital investments, understanding how investments and insurance...

Since their inception in the early 1970s, money market funds have come to play a major role in the savings and investment strategies of millions of Americans. Money market funds offer higher...

Stocks and bonds are the heart of securities markets around the world. Shares of stock represent equity interest in a corporation; while bonds are debt securities that corporations and governments...

When you purchase a certificate of deposit or a bond of some kind, you are lending your money to the issuing institution. These debt instruments are used by banks, corporations and governments to...

Money markets are the means by which banks, corporations and governments raise cash for short-term needs (less than one year) by issuing bonds. There is no central marketplace like a stock...

Debt can be purchased in many ways and forms. The bigger challenge is determining the best forms of debt to buy. For most investors, buying corporate debt directly from the issuing company is not...