Category: Investing

An investment is something of value purchased to make more money. While the term "investment" is often applied to stocks, bonds, and other financial instruments, investments also commonly include real…

Definition and Example of Tax-Loss Harvesting Tax-loss harvesting can be valuable to an individual who invests in taxable brokerage accounts, as a means of either reducing or eliminating capital gains…

Yield is the income on an investment over a period of time. It is calculated by taking interest or dividends earned by the investment, then dividing them by the value…

Definition and Examples of Risk When investing, risk refers to the possibility that an investment will lose value instead of gain value over time. Each investment has different levels of…

Definitions and Examples of Return on Investment Investors calculate return on investment in order to determine profit or loss compared to the cost of their portfolio. ROI tells how profitable…

Definitions and Examples of a Minimum Variance Portfolio A minimum variance portfolio is a collection of securities that combine to minimize the price volatility of the overall portfolio. Volatility is…

Dividend reinvestment plans, or DRIPs, are an arrangement in which cash dividends you receive from the investments you hold are automatically reinvested into additional shares. Enrolling in a DRIP makes…

What Is a Roth IRA? A Roth Individual Retirement Account (IRA) is a retirement savings account into which eligible individuals can contribute post-tax dollars. Unlike some retirement accounts that allow…

Liquidity is the amount of money that is readily available for investment and spending. It consists of cash, Treasury bills, notes, and bonds, and any other asset that can be sold quickly.…

Alternative investments frequently surface as options for investors who are looking for ways to change their volatility exposure and potentially generate additional returns beyond holding stocks and bonds. For the right investor, alternative…