March 2009

Dividend Yield

by ABC editor

Photo Credit mag3737 Check out the introductory post on dividends if you haven’t already done so. The term �dividend yield� or even just �yield� is commonly used when referring to the dividend of a stock or a stock index.� The dividend yield is the percentage which you get by dividing the annual dividend payments (total […]

Online brokerages are companies that allow you to set up an investment account with them and buy and sell investments.� The purpose of setting up one of these accounts is for someone who is a “do-it-yourself” investor and can buy investments without the help of an advisor.� An investor can have an advisor and still […]

Most investors own bonds via mutual funds or a target retirement fund.� Bonds are thought of as a very safe investment compared to stocks because their principal amount doesn’t change.� If you buy a $5,000, 10 year bond paying 6%, then in 10 years you will get your $5,000 back plus interest. �� Seems safe […]

The traditional IRA investment account is a retirement savings account which is fairly similar to the 401(k) plan in that all contributions are tax-deductible.� In other words, if you contribute money to a traditional IRA that you have already paid tax on, then the contribution will generate a tax rebate for you. Any earnings of […]


by ABC editor

Inflation is a measure of average price changes of goods and services over a period of time expressed as a percentage.� The statement “inflation was 3% last year” means that cost of living for the average person increased by 3% for that year. How is it measured? Inflation is usually measured using the [consumer price […]

The consumer price index is a measure of the average price of various goods and services consumed by households in America.� It is intended to represent the spending by the average city-dwelling American on a typical basket of goods and services. The CPI is similar to a stock market index in that the actual number […]

In a previous post, the “market” order was discussed – if you haven’t done so, please read that post first. If you want to buy an ETF (exchange traded fund) or a stock online,� it is important to learn about market orders and limit orders.� One of the potential problems with a “market” order is […]