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Definition

A bear market is when stocks see a 20 percent decline or more from a recent high.   

Why It's Important

The S&P 500 officially hit bear market status on Monday, dropping 20 percent from its 52-week high. Historically, these periods last about 13 months on...

Definition

Penny stocks are stocks that are trading below $5.00 a share. They are highly volatile. 

Why It's Important

Investor beware!  Penny stocks have the potential to make investors a lot of money they also expose investors to a lot of risk.  They key to penny stocks is...

Has it really been three months since my last post?  Man, time flies!  I had to step away because my final semester got really crazy.  I felt like I was on the verge of failing and I kept thinking to myself, I did not come 2 years to not graduate on time.  Well, the good news...

Definition

Margin is when brokers (Charles Schwab, TD Ameritrade, etc.) lend money to investors to make trades (think of credit) so they can leverage their assets to make more money.

Why It's Important

Investor beware!  Although using a margin account has the ability to make you more money, it...

Definition

The dividend yield represents the ratio between the stock price paid and the dividend paid. A stock trading at $100 per share, with a dividend that amounts to $5 per year, you would divide the $5 by $100 and turn it into a percentage. In this case, the yield would be 5%.


Why It's...

Definition

Arbitrage is the simultaneous purchase and sell of an asset to profit from the imbalance in price.  Using this strategy, takes advantage of price inefficiencies in the market.

Why It's Important

Arbitrage opportunities provide a way to collect high returns with little to no cost to...

If you have been keeping up with my finance blog, you know I love to budget! It gives you a sense of control when it comes to your money. I believe in doing a zero-based budget. This means your income will always equal your expenses. With this type of budgeting, you are telling your...

A couple of weeks ago, I came outside to yet another flat tire.  What the heck?!  It seemed like every week a tire was going flat on my car.  I knew when I bought the car I would have to get new tires (that was one aspect I used to negotiate the price down), but I didn't think it...

Definition

Selling short aka short selling is when an investor thinks a stock will go down so they "short it". Essentially, the investor borrows shares of stock or another asset he or she doesn't own, sells it, pockets the money with the promise to replace the property someday, and hopes the...

I am so excited! I was able to get my feet wet with podcasting by being featured on a fellow bloggers podcast.  It was so fun to get interviewed and we had a really great conversation about timeshares and home-ownership.  Take a listen:

For all episode notes and to subscribe, check out...