The Federal Reserve raised interest rates by 25 basis points, or 0.25%, on Wednesday as expected, bringing the benchmark borrowing rate to its highest level since 2021. The increase, the Fed’s 11th rate hike since March 2022, brings the short-term federal funds rate to a target range of 5.25% to 5.5%. After 10 consecutive rate… Continue reading Fed Hikes Interest Rates By Quarter Point After June Pause
What Is a Stock Buyback?
Stock buybacks have been rising in recent years as a means for public companies to give money back to investors. Large U.S. companies have spent over $3.9 trillion in the last five years on stock repurchases, according to S&P 500 Dow Jones Indices. But what are stock buybacks exactly, and why don’t companies just pay… Continue reading What Is a Stock Buyback?
Seven Stock Trading Tips for Teens New to Investing
A growing number of young people are being drawn into the world of investing. Stock investment can be a terrific way to reach your financial goals and develop long-term wealth if you have the right knowledge to develop a successful stock trading strategy. For teenagers, it’s especially appealing, given it’s an exciting and novel opportunity… Continue reading Seven Stock Trading Tips for Teens New to Investing
What Is the Par Value of Bonds?
Investing can be filled with a lot of industry jargon, such as par value. Par value is a term you may hear in relation to the value of a bond or share of stock. In this instance, we are concerned with the par value of bonds. The more you know about what you are investing… Continue reading What Is the Par Value of Bonds?
Stock Market Today: Solid 3M Earnings Help Dow Extend Win Streak
Stocks continued to climb higher Tuesday, with the Dow Jones Industrial Average extending its longest daily win streak since 2017. Ahead of tomorrow’s Fed decision – and a slew of earnings from Big Tech – investors today digested data on home prices and consumer sentiment, as well as a mixed batch of quarterly reports. … Continue reading Stock Market Today: Solid 3M Earnings Help Dow Extend Win Streak
What Are Options?
Options are part of an asset class known as “derivatives,” which means they derive their value from an underlying asset. For our purposes here, we’ll focus on equity, index and exchange-traded fund (ETF) options, which are among the most actively traded. Formally, options are contracts that give the buyer the right, but not the obligation,… Continue reading What Are Options?
What Is the VIX?
The Cboe Volatility Index – frequently referred to by its ticker symbol, VIX – is a real-time measure of implied volatility on the benchmark S&P 500 Index (SPX). Not only is the VIX used as a quick gauge of short-term investor sentiment, it’s also the basis of many active investing strategies, from portfolio hedging to… Continue reading What Is the VIX?
TIPS vs I-Bonds
Trying to decide if TIPS (Treasury Inflation Protected Securities) or I-bonds belong in your investment portfolio? Both TIPS and I-bonds are government-backed investments that will protect your principal while earning interest. Unlike other investments, the interest rate is periodically adjusted for inflation. Let’s dig into their benefits, risks and differences and see which option matches… Continue reading TIPS vs I-Bonds