What is the safest investment?

July 7, 2024 No Comments

Due to the variety of options on the market and the unpredictability of the economic climate, it is difficult to identify one investment that is clearly safest. But some investment categories are significantly safer than others. For example, certificates of deposit (CDs), money market accounts,

What kind of securities should a risk-averse investor buy?

July 7, 2024 No Comments

A: While most investors are focused on investment options with high rates of return, some individuals are more concerned with the level of risk inherent to specific investment allocations. Investors who are risk-averse are more apt to choose the investment that presents a lower degree

Where can I buy government bonds?

July 7, 2024 No Comments

A: The type of bond determines where you can purchase it, so you need to decide which type of bond you would like to buy first. Bonds are debt obligations. Federal bonds are issued by the federal government, while municipal bonds are issued by state

Where can I find year-to-date (YTD) returns for benchmarks?

July 7, 2024 No Comments

A: Benchmarks are securities or groups of securities against which investment performance is analyzed. Examples of popular equity benchmarks are the S&P 500 index, Dow Jones Industrial Average, Russell 2000 index, Nasdaq Composite, MSCI World Index, FTSE100 and Nikkei 225. Bond indexes are usually created

Where can I get bond market quotes?

July 7, 2024 No Comments

A: Getting bond quotes and general information about a bond issue is considerably more difficult than researching a stock or a mutual fund. A major reason for this is that there is not a lot of individual investor demand for the information; most bond information

Where Does Stock From Convertible Bonds Come From?

July 7, 2024 No Comments

A: Convertible bonds are considered a unique combination of debt and equity. They provide investors with the chance to convert a debt instrument into shares of the issuer’s common stock, at a set price and usually by a set date. This is usually done at the discretion

What is the difference between market risk premium and equity risk premium?

July 7, 2024 No Comments

A: The only meaningful difference between market-risk premium and equity-risk premium is scope. Both terms refer to the same concept and are calculated the same way. Yet the equity-risk premium only refers to stocks, while the market-risk premium refers to all financial instruments. Standard equity-risk

Which asset classes are the most risky?

July 7, 2024 No Comments

Equities is the riskiest class of assets. Dividends aside, they offer no guarantees, and investors’ money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. After equities, real estate subjects its investors to the most risk. The meltdown of

What is the difference between term structure and a yield curve?

July 7, 2024 No Comments

A: There is no difference between term structure and a yield curve; the yield curve is simply another name to describe the term structure of interest rates. What Is the Term Structure of Interest Rates? The term structure of interest rates is a graph that

Which Creditors Are Paid First in a Liquidation?

July 7, 2024 No Comments

A: Liquidation is the process of ending a business and distributing its assets to claimants. It often occurs when a company is insolvent, meaning it cannot pay its obligations when they come due. In Section 507 of the Bankruptcy Code, it states that when a corporation is liquidated,

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