Asset Class Corporate Finance Institute Group of securities with similar characteristics and behavior in the marketplace An asset class is a group of similar investment vehicles. Different classes, or types, of investment assets – such as fixed-income investments – are grouped together based on having a similar financial structure. They are typically traded in the […]
Portfolio Rebalancing Portfolio Rebalancing is dynamic asset allocation. With this strategy, you constantly adjust the mix of assets as markets rise and fall, and as the economy strengthens and weakens. With this strategy, you sell assets that decline and purchase assets that increase. Like Balancing a Tire Asset Allocation Explained by James Chen at
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Many of us are tempted to wait for a windfall—winning the lottery or a big inheritance from Aunt Phoebe—before we even start to invest. Our hopes are high because we’ve heard stories of people who hit it big, but those stories are in the news because they’re so rare, not because they’re commonplace. The best
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The distribution of assets to balance risk and reward is the most important principle of investing. A little wisdom makes a huge difference in the return on investment. A lady named Kimberly came to me, and she was visibly upset. Her husband Ed had an IRA with $100,000, but he had kept it in a
What Is a Stock? A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation’s assets and profits equal to how much stock they own. Units of stock are called “shares.” Stocks are bought
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What is Market Cap Market Cap according to Investopedia. Market Cap is Market Capitalization and it refers to the total dollar Market Value of a company’s outstanding shares of stock. Commonly referred to as “Market Cap,” it’s calculated by multiplying the total number of a company’s outstanding shares by the current Market price of one
Remember Enron The collapse of Enron dominated the business news here in Houston and around the world. In fact, for some people I know, the Enron story was painfully personal. In the years just prior to the company’s collapse, the company urged employees to keep all their retirement funds in Enron stock. One of my
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Make Your Money Count Introduction “Ninety-eight percent of us will die at some point in our lives, so a little planning can go a long way.” —Ricky Bobby, Talladega Nights The Wedding Planner I could see it on their faces and hear it in their voices. The difference was startling. Two couples, both clients of
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Tax Day Prep Kit As we get ready for tax day, I thought I’d provide a few of our most popular tax guides so you can better prepare for Tax Day. Normally, Tax Day is on my birthday, April 15. This year Tax Day falls on April 18 and so my birthday wishes for
First Market Crash On this day in 1792, Wall Street had its first major crash in history, on “Black Monday,” as Treasury bonds lost 10% of their value and shares in the Bank of the United States dropped 12%. The Panic of March 19, 1792 Prior to the Financial Crisis of 1791–92, the Bank
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