The INDEXSP:.INX is nothing more than the S&P 500 Index. Known as the Standard & Poor’s 500 and created in 1923, the S&P is an American stock market index comprised of 500 of the largest companies listed on either the New York Stock Exchange or the NASDAQ. This index, like all other indexes, is capitalization-weighted, meaning the price of the index is created by the total weight of all 500 stocks. Here is the current breakdown of this index.
Calculating Marginal Revenue: Investing in Cousin Jimmy’s startup
How are we going to use the marginal revenue formula to figure this one out?
Have you taken to heart the old adage, “If you want to be wealthy, be an owner,” and want to fund a startup? Yeah! Me, too.
What tools do we have to help us determine what constitutes a good business?
Let’s talk about marginal revenue (and the marginal revenue formula) and how it can be used to help you determine whether to invest in a small business or startup.
Etrade vs Scottrade
Imagine, if you will: Two of online brokerage’s powerhouses, Etrade vs Scottrade, as two heavyweights, doing battle, in a dead-heat for all of the possible accolades an online brokerage can accumulate. Almost the exact same size and muscle mass, it could make for a very interesting and possibly exhausting match.
TD Ameritrade vs Fidelity: Which online brokerage wins out?
I totally get it. Choosing an online brokerage firm means researching an exhausting, dizzying array of options. It’s like trying to survive finals week in college—it’s that taxing.
Well, whether that’s a gross exaggeration or not, I think what leaves investors stymied is the literally hundreds (thousands?) of options available to them, and especially for beginners, that vast array makes this all of this investment stuff so overwhelming.
I’ll attempt to slug through the murk (as concisely as possible!) and compare two brokerages that are my absolute favs – TD Ameritrade vs Fidelity.
We’ll compare everything each brokerage firm offers—from products, services, platforms, to promotions, bonuses, margin rates, mobile apps, etc. At the end of each section, I’ll end with the header TD Ameritrade vs Fidelity and discuss the pros/cons within that section.
Let’s get started!
Which of the following fed actions will increase bank lending? This is going to be one of the most straightforward blog posts we have written in a long time. The truth is, all eyes have been and will continue to be on the Fed as long as they are the ones who have control over the money supply of the US.
Which statement best describes how the fed responds to high inflation? Good question…especially nowadays when there may actually be a slight hint of inflation. Over the last decade or so, we have seen absolutely zero inflation due to the horrific and stagnant economic outlook of the global economy.
What might cause a change in the value of fiat money? This is not monopoly money we are talking about here people, we are talking about the real thing. Cash, baby.
This is a legitimate question now more than ever, and there are many different reasons why this is a question that is getting more and more play. The reality is, fiat currency is a very loosely used term nowadays with the majority of monetary transactions happening paperless. As a society, for good or for bad, we have comes very far from dealing in gold and spices to being able to make a transaction by adding a few zero’s to the end of an Excel spreadsheet.
For better or worse, fiat currency has a different place in such a regulated economic environment. Not only are we going to spend the rest of this article answering the question “What might cause a change in the value of fiat money?”, but we are also going to speak about what can really impact fiat currency over the next 25 years or so. Strap in, this one is going to be a LOT more interesting than you originally thought.
Looking for all of the Everfi financial and accounting questions and answers? We have compiled a list of dozens of questions and answers for you. We recommend you search for your questions here and if by chance you cannot find the answer you are looking for, just comment below and we will get an answer for you within 24 hours.
Whether you are a rookie or an experienced investor, these in-depth comparisons between Etrade vs Ameritrade will help you make informed decisions about which broker to engage in your quest for long-term profitable investments. While this is a seemingly small decision, it could be the difference between tens of thousands of dollars in the long run. Because picking the right brokerage platform can truly make or break and investor, we suggest not only carefully considering the differences between Etrade vs Ameritrade, but also to do some additional research yourself.
Which statement best describes how the fed responds to recessions? This is a question we received recently during a 1:1 consultation with a prospective new client. We actually do like speaking about the Federal Reserve and the Central Banks around the world, so we do not mind writing up a quick blog post about these Federal Reserve Banks and what affects their policy has on world economies.
During our weekly webinar this weekend, we were asked the question, “which of the following is considered a diversified investment?”
And it was right in our wheelhouse and we love to speak about diversification. We love to speak about investing and diversification because it is something that Wall Street talks about ALL the time. And like anything else Wall Street, it is mostly a scam or a way for you to hand over your money to them so they can charge you fees.
Without getting into too much detail (we will get into plenty of detail later), diversification is a scam. It’s a joke. It’s not real and is based off fiction instead of facts. C’mon, are you really telling me that a “sector” of a stock can be the difference between it being a diversified investment or not? Give me a break.
Here we go, our answer to the question “which of the following is considered a diversified investment?” This one is going to be short and sweet because to find out what true diversification is not difficult at all. Like many concepts in investing, you have to look under the hood at the numbers to have a true understanding of what is taking place. Diversification is an excellent example of this.
We are going to jump right in. This post is going to be a good one. And even though I have only written three sentences, I already know this post is going to help a lot of people. I am going to expand on the concept of dividends and show you how using the examples of the BP dividend, the KMI dividend, and the GM dividend, we can turn these into cash generating monthly dividend stocks with very little effort at all.
The market interest rate related to a bond is also called the…? This is a fun little quiz we are going to have. Last night, we had a record 531 attendees at our weekly webinar and we are very proud of that if I do say so myself. We have gotten investors from all different shapes and sizes and years of experience. One of the things I am most proud of, however, is the fact that Stony Brook Securities continues to attract more and more students under the age of 25.
These students do not know the ins and outs of financial markets just yet, however, they have the confidence and the interest to ask a lot of questions. Asking questions is the only way to learn more.
We were asked the question “the market interest rate related to a bond is also called the”? Let’s do a fun little post. I will give you four answers and you are going to tell me what you think the answer is going to be. Let’s have some fun!
Tesla stock is an absolute beast. There is no questioning that. But before everyone gets all excited and continues to pile into Tesla stock, we have to consider everything from the current Tesla market cap to Tesla options to the Tesla PE ratio to the Tesla dividends.
The truth is, we would normally charge hundreds of dollars for this information. We are going to do something in this post that we do not normally do for free. We are going to go through everything we look at and know about Tesla stock to make an informed decision when considering a potential investment or trade.
Which best describes the effects of low and high interest rates on the economy? This is a question we received during one of our webinars this weekend, and it is not surprising that we continue to field question after question on interest rates.
We don’t blame our customers or readers for continuing to bring up these types of questions. It ‘s hard these days to not see current mortgage rates (which are indirectly tied to interest rates) being posted at the top of most websites and newspapers.
However, very few people have a complete understanding of interest rates and specifically how much they impact the general economy. We will get into this as this article progresses, but as we become more and more addicted and reliant upon debt as a society, we will be thriving or not almost entirely on the effects interest rates have on world economies.
Here we go, our answer to the question, “which best describes the effects of low and high interest rates on the economy?”
If you have ever watched financial media or read financial news, you undoubtedly have heard of the volatility index NYSEARCA:UVXY.
While NYSEARCA:UVXY is a very popular product, many people have absolutely no clue where it comes from or exactly how to trade it. We have to warn you, trading UVXY is no walk in the park and has caused many investors to completely blow up their accounts.
Being on the wrong side of volatility can be the difference between making money or losing money over the course of a year. UVXY is a tool that can put the odds on our side (if we understand what we are doing).
I’d like to walk you all through what UVXY is and exactly how we like to trade it so that we can give ourselves the best chance to make money. Here we go, Stony Brook Securities ultimate guide to trading NYSEARCA:UVXY.
Which best describes how an investor makes money from an equity investment? This was a question we received during one of our webinars this week from a new perspective 16-year-old student.
It is great as always to see young people getting interested in financial markets and more specifically getting interested in manage their finances.
If this is the first time you are reading this blog, please know that we hate Wall Street. We hate that their end game is to gather assets and charge fees. Because of this, our goal at Stony Book Securities is to empower the individual investor and give them every tool they need to succeed in the markets.
We are more than happy to field questions like this and also to publically answer them in the form of a blog post. This should be a fun one as the answer to the question “which best describes how an investor makes money from an equity investment?” maybe isn’t as obvious as everyone thinks. And again, thank you very much to that young man who asked this question! He is well on his way to becoming a rock star investor.
Most investors who would like to get exposure to soybeans would look no further than the soybean ETF $SOYB. While this is typically an excellent choice, we have to do some serious digging in and around this soybean ETF to make sure it is the one for us.
ETF’s are very popular these days as more and more institutions are competing for retail investor dollars by creating these products. The sell for these ETF’s and institutions is simply; create a product where retail investors can get exposure to many of the products they normally wouldn’t be able to. This can be a wide variety of products, going all that way from a basket of stocks to a replacement for an extra large futures contract.
The soybean ETF $SOYB is another example of the latter where not all individual investors have the permission to trade futures contracts but can now get direct exposure to the price of soybeans. Before we invest our hard earned money in $SOYB, we must first make sure it is the right kind of product for us.
Central Bank questions are some of my favorite. The mysterious world of Central Banking has been spoken about a ton lately with the Federal Reserve of the United States currently trying to raise interest rates off of their all-time lows.
There are many policies the Central Banks of the world can enact to do pretty much whatever they want. If they want inflation to be higher, they can enact certain policies that almost guarantees inflation grows as an example.
During a webinar last night, we received the question, “which best describes what a central bank uses monetary policy to do?” The reality is that when Central Banks use monetary policy, they can do whatever they want to do as they are not governed by any Government bodies and are free to do as they please as they answer to nobody.
Throughout the rest of this article, we will discuss Central Banks, how they came to be, and exactly what monetary policy means and how it is implemented by these private entities, as well as answer the question “which best describes what a central bank uses monetary policy to do?”
EVERYBODY loves dividends…right?
But do you know why? Dividends have always been very popular, however, when interest rates go down, dividends become more and more familiar.
There are certain types of investors who seek yield. They could be pension funds, endowments, or individual investors who are retired who live off the yield of their investments. When interest rates go down, it becomes a more profitable investment (something) to invest in dividend stocks as the higher yields coming from dividends returned more than fixed income instruments like bonds.
A dividend is pretty straight forward, however, many people get confused with the different types of dividends available. Let’s go through them and see which one of the following correctly describes the dividend yield?
Risk is something that we field questions about almost daily. About 50% of our clients and customers bring up the topic of risk at least one time during one on one sessions or webinars. The reality is, financial media has trained us to be concerned with risk and always worry about if we have too much risk or not.
We are here to tell you; it is not that hard to “manage your risk.” It is one of the simplest things we as investors can do because it is one of the few aspects of investing we have complete control over.
We have been asked the question “which one of the following is an example of systematic risk?”. This is an article and concept we are very much looking forward to flushing out as the idea of risk is just too much for some people to handle.
I’ll just come out of the gate and say it. We used to trade Yahoo options almost every week. Yahoo options had penny wide bid/ask spreads, volume in the tens of thousands, and as many expiration cycles as any stock out there.
Before writing this article, I thought this was going to be a layup. Not more than a year ago, Yahoo was at the top of our list of stocks to keep an eye on each and every day. That list was comprised of some of the top stocks that we almost had positions on in no matter what. This group included $SPY, $AAPL, and yes, even $YHOO.
But for some reason, Yahoo is no longer on that list. To be honest, I don’t remember why it was taken off. I know that there was something about them maybe being bought or them completely changing their name or business, but whatever the case, we do not follow Yahoo anymore and currently do not have any Yahoo options positions.
Let’s give Yahoo and Yahoo options their fair chance. We are going to examine their markets just like we do every other stock or ETF that we go through. Because Yahoo was such a great trading vehicle for us not too long ago, we hope that we just glossed over Yahoo months ago as opposed to just removing it from our list on purpose. Maybe we can even add a Yahoo options position after this is all said and done!
Some investors look at the dividend yield of a stock as somewhat of an icing on the cake when deciding to make an investment or not. With real estate the talk of the town during rising interest rates (for now), those same investors are looking at the VNQ dividend when considering purchasing the Vanguard REIT ETF.
With a dividend rate of 4.66% according to Yahoo Finance, REITS are among the highest yielding assets classes out there. However, most investors will simply pile in all of their cash into these high-yielding REIT’s without understanding why these companies can pay such a high dividend.
Like everything else markets, Stony Brook Securities takes out time to understand the reason behind everything we can. There are specific reasons why REIT dividends and specifically the VNQ dividend pay out so much. It might not be what you think or a great investment strategy. Let’s find out exactly what is going on here.
Do not pass go. Do not collect $200.
Okay, we aren’t talking about Monopoly, but I like this photo.
Dividends…the yield-seeking investor’s dream. Get paid to hold the stock. Cash in the account. We get all that.
Here at Stony Brook Securities, we almost never look at the dividend of anything we are investing or trading in because we are looking for liquid opportunities and do not feel a dividend gives us a better chance of making money. So we simply don’t look at it.
In a consulting session last night I was asked about a stock called Frontier Communications Corporation (FTR) and specifically the FTR dividend. I did some research on the FTR dividend and the stock itself and am going to share my thoughts on it all. Sit back and relax, this is going to be an in-depth analysis of FTR, the FTR dividend, and how I look at situations like this one.
We get it…you want exposure to oil and think Barclays’ NYSEARCA:OIL is the best way to do it. We aren’t surprised about this at all.
I mean…oil is being talked about a lot lately and has been in play for well over a year now. OPEC has meetings multiple times a year where they talk about potentially cutting production supply in order to increase the price of crude oil.
Regardless of the outcome, whenever there is an OPEC meeting, crude oil is in play as it brings a lot of volatility. And when there is a lot of volatility we can be sure that there will be two-sided market action for us, thus, liquidity and opportunity.
NYSEARCA:OIL is an option for getting exposure to crude oil. Let’s see if it is the best solution for not for you.
Which of the following is not one of the responsibilities of the Federal Reserve? This is a question we received from another young client of ours who is interested in learning more about the Federal Reserve and specifically what they are supposed to do.
With interest rate hikes all the buzz as of late, this is probably a great time to throw in our two cents on the Fed. Very few people know why they were created and that their role has significantly expanded with every financial crisis that occurs.
They were founded with the mandate to provide liquidity to the system when a capital injection was required or necessary. However, they have a few more mandates than that (privately). Here we go…answering the question “which of the following is not one of the responsibilities of the Federal Reserve?”