https://youtube.com/watch?v=CRG0TUWlpXU%3Frel%3D0 A stock is defined as a share of ownership of a company. If you own XYZ stock, depending on how many shares you purchased, you own a percentage of that company. You also own a percentage of the company’s’ profits. A single share of the company represents fractional ownership of the company and it …
A bond is a form of debt. It is often called a fixed income investment. Fixed Income refers to an investment under which the borrower or issuer is obligated to make “fixed” payments on a “fixed” schedule. The payments are set at a particular figure and will not vary or rise with the rate of …
https://youtube.com/watch?v=wYtqBdO7OxY%3Frel%3D0 ETF stands for Exchange Traded Fund and it is an investment fund that is traded on a stock exchange. An ETF is a pooled basket of investments, similar to a Mutual Fund. We will discuss the core differences between an ETF and a Mutual Fund later. Trading ETFs, Mutual Funds & Stocks An ETF …
Time Value of Money (TVM) is the concept that the money available now is worth more than the same amount in the future, given their earning power over time. Concerning the equivalence relationships between cash flows occurring on different dates, the amount of difference between two cash flows is called interest. For example, if you …
Dividends are portions of a company’s earnings that it distributes amongst its shareholders. One might reasonably think why a company would readily give money to other people, and the answer to that is that is giving out dividends contains benefits for the company itself. Whenever a company makes a profit, it can either re-invest in …
To put it simply, Compound Interest is the interest you earn on interest. It is the result of reinvesting interest so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Below is the formula to calculate compound interest: Compound interest is calculated by multiplying the principal amount …
