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CREDIT SCORE wednesday word of the week Jun 14, 2020

Definition

A number given to an individual to indicate creditworthiness to a lender.

Why It's Important

I am sure every one reading this knows what a credit score is.  If not, check out my blog posts below.  So, I am not going to bore you with details but I am going to provide some facts...

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GEOMETRIC MEAN investing wednesday word of the week Mar 11, 2020

Definition
The geometric mean is the average of a set of numbers.

Why It's Important
This is not to be confused with arithmetic mean.  The arithmetic mean is what you learned in school when your teacher taught you about "mean".  As a refresher, let's look at the following set of numbers:...

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HEAD AND SHOULDERS investing wednesday word of the week Feb 26, 2020

Definition
The head and shoulders pattern in technical stock analysis is used to predict what the support level (lowest price it will potentially go before traders make it rise again) of a stock is.

Why It's Important
You probably saw this and wondered why I would be talking about a shampoo....

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FIDUCIARY wednesday word of the week Feb 19, 2020

Definition
A fiduciary is a person or organization that acts on behalf of another person or persons to manage assets.

Why It's Important
The term fiduciary has been thrown around a lot lately but do you really know what it is? A fiduciaries' responsibilities and duties are both ethical and legal....

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INFLATION wednesday word of the week Feb 13, 2020

Definition

Inflation is the increase in the prices of goods and services over time. It occurs at a specific rate according to the countries consumer price index.

Why It's Important

As prices rise, your money buys less than it used to.  You know when the older generation says, "Well, back in my...

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EXPANSION wednesday word of the week Feb 12, 2020

Definition
In economic terms, expansion is an increase in the level of economic activity.  It is a period of economic growth as measured by a rise in real GDP (Gross Domestic Product).

Why It's Important
An expansion means that the economy is doing good.  This typically coincides with the...

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DURABLE POWER OF ATTORNEY wednesday word of the week Feb 05, 2020

Definition
A durable power of attorney is a designation that is given to someone in order to handle financial transactions if another person becomes incapacitated and can't make decisions on their own.

Why It's Important
This is one of the main documents needed when you start thinking about estate...

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PUT OPTION investing wednesday word of the week Jan 29, 2020

Definition
A put is a type of option contract that gives the owner the right to sell a stock at a certain fixed price within a specified timeframe.

Why It's Important
Puts are the opposite of the word we discussed last week, Call Options.  Take a look at the example in that post to get a...

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CALL OPTION investing wednesday word of the week Jan 22, 2020

Definition
A call is a type of options contract that gives the owner the right to buy a stock at a certain fixed price within a specified timeframe.

Why It's Important
As I discussed in last week's word, Options, they are a good way to hedge against a downturn in the market if used correctly....

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OPTIONS investing wednesday word of the week Jan 15, 2020

Definition
An option is a contract that gives the buyer the right, not the obligation, to buy or sell an asset at a certain price in the future.

Why It's Important
Options play an important part in some portfolios as a way to hedge (arbitrage) against loss.  Although you can purchase options on...

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