Annuities vs. Bonds: What's the Difference? The question of annuities vs. bonds can send many investors on a wild goose chase. You might think that it's just a matter of understanding a few terms, but there are actually many distinctions between them when it comes to investing. To create a...
What Are The Functions of Finance? When it comes to financial decision-making, understanding the roles and functions of finance is essential. Financial management encompasses planning and budgeting, risk management, banking management, and asset management just to name a few areas. By understanding the functions of finance, investors can make better...
What Is Inflation? Inflation is the general increase in prices of goods and services over time. It is a core macroeconomic consideration that is often seen as a measure of a country’s economic vitality. Inflation is the compounded effect of broader economic activity and purchasing power.
When the purchasing power of...
If you’ve ever tried to tackle a project, you’ve probably encountered the terms “top-down” and “bottom-up”; two common approaches to decision-making and problem-solving. But what exactly do these terms mean and how do they differ? Many people use the terms interchangeably, so it’s important to understand the implications of...
Who Owns the US National Debt?
The national debt of the United States continues to mount and currently stands at more than twenty-one trillion dollars. Understanding who holds this debt and why is important in our understanding of how the U.S. economy works. What are the motivations of each lender?...
Red Flags in Financial Statements Financial statements are a fundamental component of financial accounting and provide a clear picture of an organization’s financial position. Most organizations generate these statements regularly to monitor growth, stability, and success. Organizations rely on a financial statement’s accuracy to develop strategies and make decisions about...
What Is a Pattern Day Trader?
Pattern day trading rules were introduced in 2001 as special regulations for brokerage accounts that require higher minimum equity for day traders. The U.S. Securities and Exchange Commission (SEC) defined the rules to limit potential losses that could potentially be caused by day trading....
What Is Disposable Income, and Why Is It Important?
Understanding disposable income is essential to properly managing your finances. Disposable income represents money that is available to you after taxes and other non-discretionary payments have been deducted from your salary. It is the amount of money that you can save...
The Basics of Construction Loans: Buy Land and Build New
When it comes to buying land for the sole purpose of building a brand new home, it's important to understand the basics of construction loans before you start the process. Construction loans are offered by most banks and other...
