Top-Down vs. Bottom-Up: What’s the Difference?
Top-down and bottom-up approaches are methods used to analyze and choose securities but the terms also appear in many other areas of business, finance, investing, and economics.
ETF vs. Mutual Fund: What's the Difference?
Both mutual funds and ETFs hold portfolios of stocks and/or bonds. However, if you are considering an ETF or mutual fund, you'll need to know the differences between the two.
Top Exchange Rates Pegged to the U.S. Dollar
From the end of World War II until around 1971, all countries in the IMF pegged their currencies to the U.S. dollar. Today, many still do.
Pre-Qualified vs. Pre-Approved: The Main Differences
Pre-qualified vs. pre-approved? They might sound the same, but they mean very different things for homebuyers. Understand the difference before you set out to buy a home.
Top 3 ETFs to Track the S&P 500 as of April 2019
If you're looking for exposure to the country's largest market caps, these index ETFs are a good place to start.
How to Get a Job in Compliance
Learn about what it takes to become a compliance officer, why the field is so diverse, the job's function, particularly within the finance industry.
Determining Where to Set Your Stop-Loss
Determining stop-loss is about targeting an allowable risk threshold and should be strategically derived with the intention of limiting loss.
Understanding GAAP vs. Non-GAAP
Find out why GAAP and non-GAAP earnings diverged in 2015. Determine which one deserves investor focus, based on investor outlook and exclusion specifics.
A Logical Method of Stop Placement
Explore several approaches to determining stop-order placement in forex trading that will help you swallow your pride and keep your portfolio afloat.
10 Best Life Insurance Companies for Veterans
These companies offer life insurance policies and related services tailored to the needs of military veterans and their families.
The Dow vs. the Nasdaq: What's the Difference?
The Dow and the Nasdaq are two investable indexes, though only one is an actual exchange.
PEG Ratio: Determining a Company's Earnings Growth Rate
Find out how the earnings growth rate of a stock's price-to-earnings-to-growth ratio (PEG ratio) is determined and learn about forward and trailing PEG.
Health Savings Accounts: Advantages and Disadvantages
Health Savings Accounts let you pay out-of-pocket healthcare costs with pre-tax dollars. But you must be enrolled in a high-deductible health plan to qualify, so they aren't right for everybody.
Preference Shares vs. Debentures: What’s the Difference?
Preference shares and debentures are two different types of financial instruments respectively representing equity and debt.
Taxable Income vs. Gross Income: What's the Difference?
Gross income is all sources of taxable income, but you're not taxed on all of it. You can take certain deductions to arrive at your taxable income, which determines your tax rate or bracket.
How Amazon Financing Works
Amazon offers customers two versions of its own store credit card, with access to special financing, as well as an Amazon Visa card.
Understanding Real vs. Nominal Interest Rates
A real interest rate is one that is adjusted to remove the effects of inflation, reflecting the real cost of funds to the borrower and the real yield to the lender or investor. A nominal interest rate, on the other hand, refers to an interest rate that does not factor out inflation.
A Guide to Social Security Dependent Benefits
Advisors tend to focus on retirement benefits, but Social Security also offers dependent benefits.
What Is the World Bank?
You've heard of the World Bank. Now find out how it functions and why some groups oppose it.
Top 4 Most Scandalous Insider Trading Debacles
The SEC has always pursued insider trading as a key element of its activities. Here are a few of the most notable cases throughout the years.
Medicare vs. Medicaid: What's the Difference?
Medicare is designed to help with long-term care for the elderly, while Medicaid covers health care costs for the poor. Read here to learn more.
Understanding Carrying Value vs. Fair Value
The carrying value and fair value of an asset are two different accounting measures used to determine the value of a company's assets and liabilities.
Corporate Bonds: An Introduction to Credit Risk
Understand how corporate bonds often offer higher yields, and discover how it is important to evaluate the risk, including credit risk, that is involved before you buy.
Old Stock Certificates: Lost Treasure or Wallpaper?
What if you've discovered some old shares in bearer form? Follow our tips to find if these old stock certificates are worth anything.
Understanding Absorption Costing vs. Variable Costing
Absorption costing includes all costs related to production, while variable costing only includes the costs directly incurred in production.
How Do Cost of Debt Capital and Cost of Equity Differ?
In corporate finance, capital – the money a business uses to fund operations – comes from two sources: debt and equity.
H&M vs. Zara vs. Uniqlo: What's the Difference?
Learn about the business models used by competing clothing companies H&M, Zara, and Uniqlo, and how each uses distribution, branding, and factors of production.
Comparing Simple vs. Exponential Moving Averages
Both simple and exponential moving averages are technical indicators that help traders visualize trends by smoothing out price movements, but they are based on different calculations.
Should You File an Early Tax Return?
Filing an early tax return makes sense if you are receiving a refund, but what if you owe tax? There are more reasons to file early than just a refund.
Top 4 Technology Penny Stocks to Watch
These stock picks are a selection of technology penny stocks that look like they could outperform in the first quarter of 2019.
Pros and Cons of a Strong Dollar
While a strong U.S. dollar benefits some, it negatively impacts others. These are the advantages and disadvantages of a strong U.S. dollar and who gains and loses.
Who or what is Dow Jones?
Dow Jones is one of the largest financial news companies in the world. It owns the Dow Jones Industrial Average and other stock indexes.
Personal Loans vs. Car Loans: What's the Difference?
If you're considering a personal loan or a car loan, you should be aware of some important differences. Here's how to tell whether a personal loan or a car loan is better for you.
401(a) vs. 401(k): What's the Difference?
401(k) plans and 401(a) plans are both retirement savings plans. The main difference is in who offers it, as well as some key contribution differences.
American Express Subsidiaries: List of Mergers and Acquisitions
Read about the most important subsidiaries of American Express Company, including two banks, an insurance company and a fraud protection company.
What Is the Prime Cost Formula?
Prime costs are the costs directly attributed to the production of a product. Before calculating prime costs, direct costs must be identified.
Interesting Facts About Imports and Exports
Learn how imports and exports have a profound influence on the consumers and economy of nations.
Four Retirement Cities in Portugal
With its low cost of living and diverse towns and cities, Portugal has a lot to offer retirees. Here's how to find the right place for you.
Foreign Portfolio vs. Foreign Direct Investment: What's the Difference?
Is it better to make foreign direct investments or foreign portfolio investments? What is the difference and who does each one appeal to?
Understanding Income Effect vs. Substitution Effect
The income effect expresses the impact of higher purchasing power on consumption. The substitution effect describes how consumption is impacted by changing relative income and prices.
What does the cash conversion cycle (CCC) tell us about a company's management?
Learn what the cash conversion cycle reveals about a company's management, and what a manager needs to do to manage a company's capital efficiently.
IPO vs. Direct Listing: Knowing the Difference
These are the key differences between an initial public offering and a direct listing of shares.
Routing Number vs. Account Number: What's the Difference?
Each bank customer has an account number and a routing number. They are used to indicate where transactions are coming from and going to.
Understanding Indexed Universal Life Insurance vs. IRAs & 401(k)s
Indexed universal life insurance is on the rise, however, critics argue that wisely allocated IRA and 401(k) funds will normally offer better returns.
Comparing Spin-Offs, Split-Offs, and Carve-Outs
Spin-offs, split-offs, and carve-outs are methods a company can use to divest certain assets, a division, or a subsidiary.
In the Money vs. Out of the Money: What's the Difference?
Learn how the difference between in the money and out of the money options is determined by the relationship between the strike price and stock price.
Understanding Closed-End Credit vs. an Open Line of Credit
Understand the difference between closed-end credit and an open line of credit, as well as how individuals and businesses use each type.
Representative Sample vs. Random Sample: What's the Difference?
What is the difference between representative samples and random samples, and how are they are used to reduce sampling bias?
Investing in Stock Rights and Warrants
Learn why many companies choose to issue rights or warrants as an alternative means of generating capital and how their value is determined.
Open Interest vs. Volume: Understanding the Difference
Learn how to interpret the relationships between price, volume, and open interest in the options and futures markets.
Stop-Loss Order Definition
A stop-loss order specifies that an investor wants to execute a trade for a given stock, but only if a specified price level is reached during trading.
Understanding Investment Banking vs. Commercial Banking
Investment banking and commercial banking can both be promising careers, with some key differences.
The Top 5 Disney Individual Shareholders (DIS)
Since 1923, the top individual shareholders of The Walt Disney Company have changed hands many times. In 2018 there are five major shareholders.
Understanding Vanguard Mutual Funds vs. Vanguard ETFs
Most Vanguard index mutual funds have a corresponding ETF. Learn about the differences between Vanguard's mutual fund and ETF products and which may be more appropriate for different investors.
Gamma-Delta Neutral Option Spreads
Find the middle ground between conservative and high-risk option strategies.
How to Pick the Best Mutual Fund
Selecting a mutual fund may seem daunting, but identifying your objectives and risk tolerance and understanding how fees work is half of the battle.
To Invest Funds or Pay Off Debts?
Deciding whether it's better to use excess cash to pay down debt or to invest depends on your investment options, risk tolerance, and cash flow situation.
Is Real Estate Broker The Career For You?
How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
Top 4 Billionaires Living in Dubai
Read about the four wealthiest individuals in Dubai, the capital of the United Arab Emirates.
How are net credit purchases calculated?
The accounts payable turnover ratio treats net credit purchases as equal to cost of goods sold (COGS) plus ending inventory, less beginning inventory.
Overview of Vanguard Prime Money Market Fund (VMMXX)
Find out if the Vanguard Prime Money Market Fund (VMMXX) is a suitable choice for investors when interest rates are rising.
How Pinterest Makes Money
The social media platform will begin trading on the NYSE on Thursday under the symbol "PINS."
Understanding Cash Flow Statement vs. Income Statement
A cash flow statement measures the sources and uses of a company's cash, while an income statement measures a company's financial performance.
Is Hedging With ETF Indexes a Relevant Strategy? (QQQ, PSQ)
Discover four viable hedging strategies with index-based ETFs, including the use of inverse and leveraged funds, as well as call writing and buying puts.
Debt Market vs. Equity Market: What's the Difference?
Debt market and equity market are broad terms for two categories of investments. The equity market sells shares of a company. The debt market trades loans that pay interest. Their risks and rewards differ greatly.
What is the Formula for Weighted Average Cost of Capital (WACC)?
Weighted average cost of capital (WACC) is the average after-tax cost of a company's various capital sources used to finance the company.
Why The Best Days May Be Over For Netflix Stock
One widely followed tech analysts argues that the streaming giant is overvalued.
$4 Trillion Stock Rebound Spurs Cash Surge Into World's Biggest ETF
As the rebound gains staying power, investors have begun pouring cash back into ETFs.
Intel Breaks Out to Fresh Highs After Qualcomm Deal
Intel shares moved sharply higher Wednesday after it abandoned plans to provide 5G smartphone modems, which could boost revenue and margins.
3 Charts That Suggest Health Care Stocks Are Headed Lower
Health care stocks have been in a strong uptrend, but closes below several key trendlines suggest that this could change.
Netflix Trading Higher After Lowering Guidance
Netflix stock rallied more than 3% Wednesday morning and could reach the $380s in coming sessions despite decreased second quarter guidance.
Weighted Average Shares Versus Outstanding Shares
Understanding the difference between weighted average shares and shares outstanding helps build a portfolio that performs according to expectations.
What are the Main Income Statement Ratios?
Learn how to calculate and interpret some of the most common and insightful financial ratios, like earnings per share, from a company's income statement.
Planet Fitness Shares Are Alerting Unusual Buy Activity
Unusual buy signals and strong fundamentals suggest more upside ahead as the company achieves dominance in the fitness space.
3 Charts That Suggest It's Time to Buy Social Media Stocks
Bullish chart patterns of popular social media stocks and a popular ETF suggest that now could be the ideal time to increase exposure.
How do you calculate GDP with the Income Approach?
There are generally two ways to calculate GDP: the expenditures approach and the income approach. Find out the factors that go into calculating the GDP of a country using the income approach.
How 'Flash Boys' Trading Is Wreaking Havoc In Crypto World
These trades are estimated in the billions of dollars, per a new study by Cornell Tech and other universities.
Why BlackRock CEO Fink says Stocks are on Brink of a ‘Melt-Up’
Equities are having one of their best starts to the year ever and could rise even higher according to some prominent Wall Street investors.
What is the difference between book value per common share and NAV (net asset value)?
Understand the difference between book value per common share and net asset value, and learn how these evaluations are used by investors and market analysts.
6 High-Paying Jobs With Low Education Requirements
If the high cost of college is getting you down, you can still find jobs with high pay that require little or no post-secondary education.
Best Entry Level Finance Jobs for 2018
Here's a look at how to start a finance career, the finance sector's most rewarding entry-level jobs, and what you can expect from them.
What Is a Relative Standard Error
Distinguishing between mean, standard deviation, standard error, and relative standard error in statistical survey samples.
Why Is Harvard's Endowment Jumping Into Crypto?
Harvard University’s $39 billion endowment has joined two other investors in spending a cumulative $11.5 million to back Blockstack Inc.
Standard Error of the Mean vs. Standard Deviation
Learn about the difference between the standard error of the mean and the standard deviation, and how each is used in statistics.
How to Compare the Yields of Different Bonds
Understand how to compare the yields of different bonds, and how to equalize and compare fixed-income investments with different yield conventions.
The Macaulay Duration of a Zero-Coupon Bond in Excel
Find out more about the Macaulay duration and zero-coupon bonds, and how to calculate the Macaulay duration of a zero-coupon bond in Microsoft Excel.
Netflix Earnings – What to Keep an Eye On
Netflix is set to report after the close on Tuesday, with the impact of Disney+ and subscriber growth numbers in the spotlight.
Return on Investment Versus Internal Rate of Return
Find out the similarities and differences between the internal rate of return (IRR) and return on investment (ROI).
Beware False Signals From the P/E Ratio
The P/E ratio is a simple tool for evaluating a company, but it can also send false signals.
How to Report your Interest Income?
Find out how your accounts are taxed and which forms you need.
Pros and Cons of Money Market Funds
Money market funds are a safe, if not super profitable, place to put money. But there's no FDIC and fees can be high. Choose your fund with care.
Exchange Rate Risk: Economic Exposure
Changes in exchange rates have a substantial influence on companies’ operations and profitability. Here are ways they can deal with the risk.
Should You Let Turbo Tax Share Your Data?
Here are possible rewards and risks of allowing TurboTax to share your information.
9 Things to Know Before You Refinance Your Mortgage
Whether or not a mortgage refinance is right for you depends more on individual circumstances than on this week's mortgage interest rates.
How is EBIT Breakeven Affected By Leverage and Financing Plans?
Read about how financial leverage increases the break-even point for a corporation, which is the point at which earnings become real profits.
Winning the Lottery: Dream or Nightmare?
Winning the lottery is both a dream come true and a nightmare. Make sure you account for taxes and other hidden fees when claiming your prize.
What is the average P/E ratio in the financial sector?
Learn how to calculate and use the price to earnings (P/E) ratio when analyzing an investment and what the financial services industry P/E ratio average is.
IBM Buyers in Control Ahead of Earnings
Aggressive IBM buying interest has lifted shares of the old-school tech giant more than 35% off December's multi-year low.
Citigroup Stock Testing Resistance After Upbeat Quarter
Citigroup shares are struggling to clear resistance at the April high after a modestly positive earnings report.
How does market risk affect the cost of capital?
Find out how market risk directly affects the total cost of capital, including how to use the capital asset pricing model to estimate the cost of equity.
How to Efficiently Read an Annual Report
A company's annual report provides information on the financial status of a company that is valuable to investors. Learn how to read between the lines and decipher the actual condition of a company.
Top Reasons Banks Won't Cash Your Check
Cashing a check isn't always a simple task. Problems can include how old the check is, the amount the check is for, or not having proper identification.
The Purpose of IRS Form 8949
Anytime you sell or exchange capital assets, you must report the transaction on your federal income tax return.
Comparing Internal vs. External Economies of Scale
An economy of scale is a microeconomic term that refers to factors that drive production costs down while increasing the volume of output. Internal economies of scale are firm-specific, while external economies of scale occur based on larger changes outside of the firm.
Index Fund vs. ETF: What's the Difference?
Learn about the difference between an index fund and an exchange-traded fund, or ETF, and how index fund investing compares to value investing.
Private Equity vs. Venture Capital: Understanding the Difference
Learn the differences between private equity and venture capital, especially in terms of how these types of firms invest and operate.
Comparing Private Mortgage Insurance vs. Mortgage Insurance Premium
Learn the differences between private mortgage insurance (PMI) and a mortgage insurance premium.
Calculating Covariance for Stocks
The covariance calculation shows how two stocks move together, which is useful when building a diversified investment portfolio.
What Is the Difference Between EBIT and EBITDA?
Although they have some similarities, EBIT and EBITDA are two metrics that measure profitability. But the differences in their calculations can lead to varied results.
How Is Operating Margin And EBITDA Different?
Operating margin and EBITDA are two profitability metrics that are related, but provide different insights into the financial health of a company.
How Do I Calculate How Much Home Equity I Have?
Find out how to calculate the home equity in your home, your home equity percentage, and the loan-to-value (LTV) based on the current market price.
How Do Investors Lose Money When the Stock Market Crashes?
Find out how investors can lose money due to stock market crashes. Learn how fluctuating share prices affect overall wealth.
Top Indicators for a Scalping Trading Strategy
Scalpers can profit in today's modern environment by using technical indicators — outlined here — that are custom-tuned to very small time frames.
Top 5 Dividend Stocks in the FTSE for 2018
The five top dividend payers from the FTSE 100.
Pros and Cons of a Trade Deficit
Is a trade deficit, also known as a current account deficit, beneficial or detrimental to a country's economy? What some economists see as drawbacks others view as benefits.
How Companies Use Derivatives to Hedge Risk
Learn how derivatives can be used to reduce the risks associated with changes in foreign exchange rates, interest rates, and commodity prices.
Top Copper ETFs for 2018
Investors speculating on the copper market have a lot of options, but one of the easiest is through ETFs and global forecasts for copper prices are upbeat. 
How to Calculate the Inventory Turnover Ratio
The inventory turnover ratio is a key measure for evaluating how effective a company's management is at managing inventory levels and generating sales from it.
Comparing Business Administration Degree vs. Finance Degree
Degrees in business administration and finance differ in their focus, but either can lead to lucrative careers with small and large companies.
Getting Into Real Estate: 5 Steps to Become an Agent
Get a head start in the real estate business by following these five steps that increase marketability and earnings potential.
How to Determine the Proper Weights of Costs of Capital
Learn how to calculate the weights of the different costs of capital, as well as how this is used to determine the weighted average cost of capital.
How Dividends Affect Stock Prices
Find out how dividends affect the underlying stock's price, market psychology, and how to predict price changes after dividend declarations.
What is the Fixed Asset Turnover Ratio and Why is it Important?
Learn about the fixed asset turnover ratio and how this calculation is used to analyze how efficiently a company uses its assets to generate profit.
What's Considered a Good PEG Ratio?
The price/earnings to growth (PEG) ratio is a stock valuation measure that can be used to get a sense of a company's performance.
Buying a House on a Main Road: Pros and Cons
Most people may not consider buying a house on a main road but there are advantages, such as convenience, better security, and a price discount.
When Leasing a Car Is Better Than Buying
Leasing a car isn't for everyone. But it's attractive for those who want low initial payments and the ability to get a new vehicle every few years.
Fico vs. Experian vs. Equifax: What's the Difference?
FICO, Experian, and Equifax all provide information about a borrower's credit history, however, important differences exist between the three companies.
Understanding Cash Back vs. Airline Miles
People who choose cash back offers can usually spend that cash on travel or use it for other purchases. Airline miles are less flexible but build up at about the same rate as cash rewards.
Dual Citizenship: Advantages and Disadvantages
When does it make sense to be a citizen of the United States and another country? Here are the advantages and disadvantages of a dual citizenship or dual nationality as it is sometimes called.
CAPM Model: Advantages and Disadvantages
The capital asset pricing model (CAPM), while criticized for its unrealistic assumptions, provides a more useful outcome than some other return models. Here is how CAPM works and its pros and cons.
Understanding Amortization vs. Depreciation
Learn the difference between amortization and depreciation and how companies use these accounting methods to their advantage when they must declare the value of assets in their possession.
Interest Rate vs. APR: What's the Difference?
Comparing the annual percentage rate (APR) and interest rate on competing loans helps you understand the true cost of the loans and make a wise decision. Learn more on the differences between interest rate and APR.
American vs. European Options: What's the Difference?
American- and European-style options have similar characteristics but the differences are important to learn.
Good Debt vs. Bad Debt: What's the Difference?
Borrowing money to purchase something that can increase in value or increase your net worth can be a good investment, but taking out a loan to buy depreciating assets usually results in bad debt.
Comparing Dominant Strategy Solution vs. Nash Equilibrium Solution
Dive into game theory and the Nash equilibrium, and learn why the equilibrium assumptions about information are less important with a dominant strategy.
Debentures vs. Fixed Deposits: What’s the Difference?
Debentures and fixed deposits are two relatively low-risk financial instruments. Learn about how these investments are different.
MoneyGram vs. Western Union: What's the Difference?
MoneyGram and Western Union are two of the most popular money wiring services. Compare the services and the fees of each before making a choice.
Comparing Magna Cum Laude and Summa Cum Laude
Cum laude is a Latin term that translates to “with honor.” Magna cum laude means “with great honor,” and summa cum laude means “with the greatest honor."
CDs vs. Bonds: What's the Difference?
Certificates of deposit (CDs) and bonds are among the safest investment choices. Both are essentially types of loans for interest but there are key differences between them.
Understanding Operating Expense vs. Capital Expense
Learn more about the differences between an operating expense (OPEX) and a capital expense (CAPEX), and see how they are treated for tax purposes.
Preference Shares: Advantages and Disadvantages
Companies issue preference shares, which are commonly referred to as preferred stock, to raise capital. These shares have benefits and drawbacks for both investors and the issuing company.
CIF vs. FOB: What's the Difference?
Learn about the differences between FOB and CIF international trade agreements and the advantages and disadvantages for sellers and buyers.
Comparing Standard Deviation vs. Average Deviation
The calculation and interpretation of standard deviation and average deviation, also called the mean absolute deviation, vary in some key ways.
Cash Flow vs. Fund Flow: What's the Difference?
See how cash flow and fund flow differ from each other, and why fund flow can be used very differently by accountants and investors.
401(k) vs. Roth IRA: What is the Difference?
A 401(k) and a Roth IRA are both great tax-saving vehicles for your retirement dollars, but check out the differences before you pick one over the other.
The Difference Between Gross Income vs. Earned Income
The difference between earned income and gross income is an important one come tax time. Find out how the IRS uses both to determine your final tax liability.
If You Purchased $100 of Apple in 2002
Discover just how much money an investor could have made with only a $100 investment in Apple stock purchased in 2002.
REIT vs. Real Estate Fund: What's the Difference?
Real estate investment trusts (REITs) invest directly in income-producing real estate and are bought and sold like stocks. Real estate funds are a type of mutual fund that may invest in REITs.
What Are Some Examples of Fiduciary Duty?
Understand what it means to be a fiduciary, when fiduciary duties arise. Learn some common examples of fiduciary duty in practice.
Merger vs. Takeover: Understanding the Difference
In general, mergers and takeovers (or acquisitions) are very similar corporate actions. A merger is the mutual decision of two companies to become one; by contrast, an acquisition is the purchase of a smaller company by a larger one.
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