Tag: CAP
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Definition of Effective Tax Shelters, Their Advantages, Examples, and Strategies
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What are tax-efficient funds? Tax-efficient funds are mutual funds or exchange-traded funds (ETFs) that generate relatively lower levels of dividend income and capital gains compared to other mutual funds. In contrast, non-tax-efficient funds produce dividends and capital gains at a relatively higher rate than tax-efficient mutual funds or ETFs. Tax…
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What is leveraged trading?
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Leverage trading is any type of trading that involves borrowing money or increasing the number of shares involved in trading by the number of shares you can afford to pay for in cash. How Does Leverage Trading Work? Leverage trading, in its simplest sense, is any type of trading that…
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Understanding the Basics of Convertible Bonds
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Convertible bonds are bonds issued by companies that can be converted into shares of the issuing company at the bondholder’s discretion. Convertible bonds typically offer higher yields than common stocks, but their yields are lower than those of regular corporate bonds. Advantages and Disadvantages of Convertible Bonds Like regular corporate…
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How to Calculate Mutual Fund Expense Ratios
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When you purchase a mutual fund, the fund buys and sells underlying investments on your behalf, incurring costs for the fund. The fund passes some of these costs onto you in the form of an expense ratio. Learn more about this cost to help you maximize the returns of your…
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What is counter-criticism?
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Cashback rewards are bonuses paid to credit cardholders who make qualifying purchases using their credit card. Cashback can be granted in the form of a statement credit that reduces the outstanding balance on the credit card; or cardholders can choose to receive cashback as a deposit into their bank account,…
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Inverse Leveraged ETFs: What You Need to Know
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Introduction Many well-known exchange-traded funds (ETFs) aim to replicate the performance of a specific index, but there are other types of ETFs that differ in structure. Two of these types include leveraged ETFs and inverse ETFs. Some investors are looking for funds that use both leveraged and inverse trading strategies.…
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Small Businesses: Definition and Their Impact on the Economy
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Small businesses are defined as companies that employ fewer than 500 employees (in the manufacturing sector) or 100 employees (in the wholesale trade sector). The federal government specifies certain definitions for small businesses across all other industries. How Small Businesses Impact the U.S. Economy Small businesses are critical to the…
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How much renter’s insurance should I get?
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As a tenant, there is one thing you should not skimp on in your budget: renter’s insurance. This is a type of insurance policy that protects you, your belongings, and your living situation after theft, damage, or any other losses covered by the policy. What Renter’s Insurance Covers Standard renter’s…
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The Best Ways to Allocate Your Money in a 401(k) Account
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There is no need to be a professional investor to allocate money in your 401(k) account in a way that meets your long-term goals. Three simple methods can work for distributing money in your 401(k) in addition to two extra strategies if the first three options are not available or…
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Basics of Investing in Dividend-Paying Stocks
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High dividend stocks are considered one of the most traditional and easiest-to-understand options for investors seeking income. Although investing in the stock market involves more risk compared to investing in bonds, dividend-paying stocks offer moderate income and the potential for capital appreciation over the long term. Benefits of Dividend-Paying Stocks…
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Best Fidelity Funds to Buy
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Fidelity Investments is a financial services company based in Boston, Massachusetts. It is one of the largest asset managers in the world and is known for its actively managed, no-fee mutual funds. It also offers financial services for retirement plans such as 401(k) plans and Individual Retirement Accounts (IRAs). Types…
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6 Ways to Diversify Your Portfolio for Increased Protection
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Whether you are a new investor or have been in the investment game for a while, one word you will hear frequently is diversification. The reason for this is simple and important. Diversification is essential for reducing risk. Security Diversification The lowest level of diversification is security diversification. Here, risks…
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List of the Cheapest Index Funds to Buy
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Index funds that are often the cheapest are usually the best to buy because they all do the same thing: passively track a benchmark market. Often, it doesn’t make sense to buy high-cost index funds, as cheaper funds can achieve the same goal. Cheapest S&P 500 Index Funds These funds…
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Unemployment Benefits: How to Apply
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What is Unemployment Insurance? Unemployment insurance was first established in 1935 through the signing of the Social Security Act. It aims to provide stability for newly unemployed individuals while they search for work. Employers pay into the unemployment insurance program through a combination of state and federal taxes, and in…
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9 Facts People Don’t Know About Roth IRA Accounts
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Roth IRA accounts are powerful and flexible financial planning tools, but they are also complicated. Many people are not familiar with all aspects of these accounts. Here are nine facts about Roth IRA accounts that may surprise you and affect your retirement planning decisions. Using Roth IRA Funds as Emergency…
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How to Start Investing in Exchange-Traded Funds (ETFs)
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Exchange-traded funds (ETFs) are groups of stocks, bonds, and other securities that are bought and sold daily on stock exchanges. When you buy shares of an ETF, you are buying an interest in all the investments it holds. Learn how to use ETFs so you can start investing in them.…
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Best Mutual Funds for a Roth IRA in 2022
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Investment Strategies for a Roth IRA Using a Roth IRA for investing is very similar to investing in other accounts. You want to build a diversified portfolio that has the best chance of increasing in value over time. You can adjust your risk and reward profile for your investments based…
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5 Small Investment Funds Compliant with ESG Standards
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Can investing in small companies be sustainable and profitable? Introduction The number of investors in mutual funds who want to integrate their social values into their investment approach is increasing. Environmental, social, and governance (ESG) criteria provide a framework to help them achieve this. As the name suggests, the ESG…
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What is property tax assessment?
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Definition and Example of Property Tax Assessment How Property Tax Assessment Works Types of Property Tax Assessment Do I Have to Pay Property Taxes? Frequently Asked Questions Definition and Example of Property Tax Assessment Property tax assessment is a professional estimate of the market value of residential or commercial property.…
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The Dangers of Purchasing Quick Flip Homes
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Don’t let yourself be lured by a fresh coat of paint, shiny new appliances, or granite countertops. Flipped homes can be filled with the wrong things beneath the surface – things that you might not discover until it’s too late to do anything about them. Flipping a Foreclosed Home This…
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What is the Toronto Stock Exchange (TSX-V)?
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The Toronto Stock Exchange (TSX) is Canada’s version of the New York Stock Exchange. Similarly, the TSX Venture Exchange (TSX-V) is like the NASDAQ for small-cap companies or the OTCBB. Who is listed on the Toronto Stock Exchange (TSX-V)? There are over 1,600 companies listed on the Toronto Stock Exchange…
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How to Find the Best Roth IRA Account Prices
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Strategies for Investing in Roth IRA Accounts What is the average return on a Roth IRA account? How do Roth IRA account rates work? Investment options in a Roth IRA account Other considerations Selecting an investment strategy for a Roth IRA account Frequently asked questions (FAQs) What is the average…