What Is Compounding£
Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings.
Certified Internal Auditor (CIA) Definition
Certified Internal Auditor (CIA) is a certification offered to accountants who conduct internal audits.
Benjamin Graham
Benjamin Graham was an influential investor who is regarded as the father of value investing.
Maturity Mismatch Definition
A maturity mismatch occurs when a company's short term liabilities exceed it's short term assets or when the maturities in a hedge are misaligned.
Investment Banking vs. Law: What's the Difference£
Learn some of the most important differences between a career in investment banking and law, and figure out which career suits you better.
What Is Diversification£
Diversification is an investment strategy based on the premise that a portfolio with different asset types will perform better than one with few.
Best Places to Exchange Currency in Miami
Here is where to exchange foreign currency before you head for South Beach in Miami.
Top 4 Conservative Allocation Mutual Funds
Top-rated mutual funds in the conservative allocation category are offered by companies such as Vanguard, American Funds, T. Rowe Price and Thrivent.
Traffic Acquisition Cost (TAC) Definition
Traffic acquisition costs are payments made by Internet search companies to firms that direct consumer and business traffic to their websites.
What Is the Turing Test£
The Turing Test is a deceptively simple method of determining whether a machine can demonstrate human intelligence.
Whipsaw Definition
Whipsaw is a condition where a security's price is moving in one direction when it quickly changes and moves in the opposite direction.
Retirement Planning Tips in Your Mid-60s and Beyond
Retirement planning can be tricky. These retirement planning tips can help you figure out the best way to save smarter if you're in your mid-60s and beyond.
A vendor is a party in the supply chain that makes goods and services available to companies or consumers.
Special Dividend Definition
A special dividend is a non-recurring distribution of company assets, usually in the form of cash, to shareholders.
What Are Austerity Measures£
Austerity measures are attempts to significantly curtail government spending in an effort to control public-sector debt.
Death Tax
Death taxes, also called estate taxes, are taxes imposed by the federal and some state government on someone's estate upon death.
What Is a Currency War and How Does It Work£
We look at what a currency war is, what factors may lead to it, the impact of such a strategy, and whether there is currently a currency war.
What Is Home Equity£
Home equity is the calculation of a home's current market value minus any liens attached to that home.
How to Get Market Segmentation Right
Effective market segmentation not only identifies the most profitable customers—it also optimizes pricing, distribution, and new product development.
Compliance Cost Definition
Compliance cost refers to all of the expenses a firm incurs in order to adhere to industry regulations.
Day Trading: The Basics and How to Get Started
What is day trading£ Read this introductory article to learn the basics of day trading, who does it, and how it works.
Why is Deferred Revenue Treated as a Liability£
Deferred revenue is listed as a liability on the balance sheet because, under accrual accounting, the revenue recognition process has not been completed. 
Zero-Day Attack Definition
A zero-day attack is a cyberattack that exploits a potentially serious software security weakness that the vendor or developer may be unaware of.
Designated Beneficiary Definition
A designated beneficiary is a living person who is named as a beneficiary on a retirement account, who also does not fall within the definition of an eligible designated beneficiary.
How FanDuel and DraftKings Work
Leading the daily fantasy sports industry, DraftKings and FanDuel are supported primarily by advertising, entry fees, media companies, and sports leagues.
Economy Definition
An economy is a system of production and consumption activities that determines how resources are allocated among all of its participants.
Immediate Beneficiary
An immediate beneficiary or primary beneficiary is an individual or organization that receives immediate benefits from a trust's assets.
Strategies for Containing U.S. Healthcare Costs
Proposals to lower U.S. healthcare costs have historically ranged from incremental changes to total restructuring of the health sector. Learn more about these strategies.
Consumer Goods
A consumer good, or final good, is the end product a business produces that is purchased by a consumer.
What to Expect in the Markets Next Week
Coming up next week: reports from major retailers and updates on the state of the U.S. housing market.
Affordable Care Act (ACA)
The Affordable Care Act (ACA) is the federal statute signed into law in 2010 as part of the healthcare reform agenda of the Obama administration.
How Pharmaceutical Companies Price Their Drugs
Learn about how pharmaceutical companies price drugs, why prices are often significantly high, and why it can be difficult to settle on a suitable price.
What Is the Unemployment Rate£
The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
What Is a Remittance£
A remittance is a sum of money sent to another party, usually in another country. Remittances are a major source of income for people in poor nations.
What Is the Kyoto Protocol£
The Kyoto Protocol is an international agreement adopted in 1997 that aimed to reduce carbon dioxide emissions and the presence of greenhouse gases.
Your Money Your Health: Managing Money in 2021 & Beyond
To help readers make educated financial and health decisions, Investopedia and Verywell hosted a free, virtual conference on Sept. 21, 2021.
Bank for International Settlements (BIS)
The Bank for International Settlements is an international financial institution that serves as a bank and forum for national central banks.
Presidential Election Cycle Theory Definition
The presidential election cycle theory attempts to forecast trends in U.S. stock markets following the election of a new president.
Unbanked Definition
Unbanked is a term for people who do not use banks or banking institutions in any capacity.
Market Neutral Fund
A market-neutral fund seeks a profit in upward or downward trending environments, often through the use of paired long and short positions.
Interim CEO Definition
An interim CEO is a person appointed by a company's board of directors to assume the role of the chief executive officer during a time of transition.
Suitable (Suitability) Definition
An investment must meet the suitability requirements outlined in FINRA Rule 2111 prior to being recommended by a firm to an investor.
Outward Direct Investment (ODI) Definition
An outward direct investment is a business strategy where a domestic firm expands its operations to a foreign country.
Deducting Disaster: Casualty And Theft Losses
If you've been a victim, your losses may be deductible. Find out how.
Six Sigma Certification
Six Sigma certification is a verification of an individual's command of a well-regarded method of professional skills development.
Today's Mortgage Rates & Trends - August 12, 2022: Rates flat
Rates on 30-year mortgages took a breather Thursday, pausing a week-long pattern of volatile swings.
Financial Services Agency (FSA)
Financial Services Agency, or FSA, is a Japanese government entity responsible for overseeing banking, insurance and securities and exchange.
Development Well
A development well is drilled in a proven area for the production of oil or gas, in contrast to an exploratory well, which is drilled to find oil or gas.
Guaranteed Issue Life Insurance Definition
Guaranteed issue life insurance is a small whole life insurance policy with no medical questions or exam.
SSI and Medicaid During Pregnancy and Childbirth
Supplemental Security Income (SSI) and Medicaid can help with the costs of pregnancy and childbirth for many people. Learn how SSI and Medicaid coverage works.
Board Lot Definition
A board lot is a standardized number of shares offered as a trading unit—usually a minimum transaction size of 100 units/shares.
Moving Average (MA): Purpose, Uses, and Examples
A moving average (MA) is a technical analysis indicator that helps level price action by filtering out the noise from random price fluctuations.
What Is the Importance of a Home Inspection Contingency£
A home inspection contingency gives buyers a chance to identify major issues with a home prior to closing. Find out what a home inspection includes.
Annuitization Definition
Annuitization converts an annuity investment into a series of periodic income payments, and is often used in life insurance payouts.
Current Exposure Method (CEM) Definition
The current exposure method (CEM) is a measure of replacement cost within a derivatives contract should the counterparty default.
Managing Costs for NICU Stay
Newborn intensive care may be necessary when babies are born prematurely or with certain health conditions. Learn how to manage costs for a NICU stay.
What Is An Escrow Balance£
Detailed description of what your escrow balance is, how it’s funded as part of your mortgage payment, and how to keep tabs on it
Routing Number vs. Account Number: What's the Difference£
Each bank customer has an account number and a routing number. Learn more about how they are used to track funds and where to find them on a check.
Business Plan Definition
A business plan is a written document that describes in detail how a new business is going to achieve its goals.
Best Penny Stocks for August 2022 Based on Technical Analysis
The penny stocks with interesting technical indicators this month are TRX, CLVS, ALTO, and OSUR.
How to Buy Bitcoin
Here’s a breakdown of everything you need to know to make your first investment in Bitcoin.
How Much Mortgage Can I Afford£
How much you can afford to borrow depends on a number of factors, not just what a bank is willing to lend you.
Aptitude Test
An aptitude test is an exam or survey used to determine an individual's propensity to succeed in a given activity.
Deed in Lieu of Foreclosure Definition
Deed in lieu of foreclosure is an action by a mortgagor by which they deed the collateral property back to the lender to avoid foreclosure.
Pre-Refunding Bond Definition
A pre-refunding bond is a type of bond issued to fund the issuance of a callable bond.
What to Do if You Can’t Max Out Your 401(k)
Maxing out a 401(k) is not ideal for everyone. If you have limited investment choices or a tight cash flow, you may not want to max out a 401(k). Here's what to do.
Investopedia Anxiety Index
The Investopedia Anxiety Index is a gauge of investor sentiment based on the behavior of over 20 million Investopedia readers around the world.
Case Studies of Successful Enterprise Resource Planning
A look at ERP success stories to help understand some of companies’ biggest challenges and goals in this area.
How to Calculate Return on Investment (ROI)
Return on investment (ROI) measures how well an investment is performing. Find out how to calculate and interpret the ROI of your portfolio.
Fractional Reserve Banking
Fractional reserve banking is a system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal.
Degrees of Freedom Definition
Degrees of Freedom refers to the maximum number of logically independent values, which are values that have the freedom to vary, in the data sample.
What Is a Waiver of Subrogation£
A waiver of subrogation is a contractual provision that prohibits insurers from seeking redress from a negligent third party.
NINJA Loan Definition
A NINJA loan is a slang term for a loan extended to a borrower with "no income, no job and no assets."
What Is a Branded Title£
A detailed definition of what a branded title is and how it differs from other types of salvage titles.
How Does Affirm Work£
Affirm offers convenient buy now, pay later financing to shoppers. Learn how Affirm and its point of sale installment loan options work.
Modified Adjusted Gross Income (MAGI)
The modified adjusted gross income (MAGI) you report on your tax return is used to determine if you qualify for certain tax benefits.
Who Is Greg Abel£ What Is His Salary£
Greg Abel is the next-in-line to be the Berkshire Hathaway CEO when Warren Buffet steps down or passes away.
Hedge Fund
A hedge fund is a limited partnership of private investors whose money is managed by fund managers who invest in risky or non-traditional assets.
Today's Mortgage Rates & Trends - August 10, 2022: Rates inch down
After swinging dramatically the previous four days, rates on 30-year mortgages are moved just a few basis points lower Tuesday.
VantageScore Excluding Medical Bills from Credit Scores
The FICO competitor says unpaid medical collections aren't a good predictor.
Disney Hikes Streaming Prices
In its latest results, Disney said it added 14.4 million subscribers to Disney+ in the fiscal third quarter, bringing total subscribers to 152.1 million—higher than the 147 million analysts had expected.
National Futures Association (NFA) Definition
The National Futures Association (NFA) is an independent, self-regulatory organization for the U.S. derivatives industry. It identifies and mandates industry-best practices.
Green Investing Definition
Green investing consists of investment activities that focus on companies or projects committed to the conservation of natural resources.
What the Department of Housing and Urban Development Does
HUD runs programs intended to support homeownership, increase safe and affordable rentals, reduce homelessness, and fight housing discrimination.
Ethereum 2.0 is On Horizon After Passing Another Test
The Ethereum network has just completed its final test before the September Merge event.
Exemption Trust Definition
An exemption trust helps minimize or eliminate federal estate taxes on a married couple's estate. The trust holds assets of the first spouse to die.
Trade Date Definition
A trade date refers to the month, day, and year that an order is executed in the market.
Young Professionals: Should You Rent or Buy£
When you're first starting out in your career, you face a number of decisions. Whether you're ready to purchase a home is a major one.
Musk Sells More Tesla (TSLA) Stock Amid Twitter Showdown
Twitter stock gained Wednesday after an SEC filing revealed that Elon Musk had sold almost $7 billion in Tesla shares. Here's why.
Today's Mortgage Rates & Trends - August 11, 2022: Rates move lower
Rates on 30-year mortgage moved lower for a third day, continuing their pattern of big swings over the past week.
Tangible Common Equity (TCE) Definition
Tangible common equity (TCE) is a measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses.
Pink Tax
The "pink tax" refers to a markup on goods and services marketed to women and for which men pay less for similar products and services.
Inflation Definition
Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.
CFA vs. Series 7: What’s the Difference£
The Series 7 is a license required to buy and sell securities products, while the CFA is a certification, comparable to a master’s degree.
Atomic Swap Definition
Atomic swaps are smart contracts that enable the exchange of cryptocurrencies from different blockchains in one transaction instead of many.
Do You Really Need Fixed-Income Funds in Your 401(k)£
Fixed-income funds can give your 401(k) more principal protection and reliable income, but they also tend to yield lower gains. Learn how to diversify with these funds.
Will a Loan on My 401(k) Affect My Mortgage£
A 401(k) loan won't affect your current or future mortgage. Learn how a 401(k) loan works and about how to use it to finance a down payment on a new home.
Business Development Company (BDC)
A business development company is a type of closed-end fund that makes investments in developing companies and in firms that are financially distressed.
Top Penny Stocks for August 2022
These are the penny stocks with the best value, fastest growth, and most momentum for August.
Ease of Movement Indicator Definition
The Ease of Movement (EMO or EMV) indicator shows the relationship between price and volume, and it's often used to assess the strength of an underlying trend.
Warranty Definition
A warranty is a form of guarantee that a manufacturer offers to repair or replace a faulty product within a window of time after purchase.
Best Paying Jobs in Finance
These six types of well-paying financial sector professions range from portfolio manager to economic analyst.
The Good and Bad of National Lotteries
Here's a look at some of the positives and negatives of national lotteries.
7 Companies Owned by Pfizer
Warner-Lambert, Pharmacia, Wyeth, Hospira, Medivation, Array BioPharma, and Trillium Therapeutics were the global drug giant's top acquisitions.
Learn the Lingo of Private Equity Investing
Private equity was once a realm mostly reserved for institutional investors. Here are the terms they use to evaulate the industry's robust returns.
How the My Best Buy Credit Card Works: Benefits and Rewards
Best Buy credit card offers promotional financing and cash-back rewards to incentivize higher spending.
Compare Today's Best Mortgage Rates
Compare mortgage rates across 18 different products for both purchase and refinance and see how they stack up across the country.
The Best 20-Year Mortgage Rates for 2022
The right mortgage can make your dream of owning a home a reality. We researched and reviewed the best 20-year mortgage rates, all collected here.
The Best 15-Year Mortgage Rates for 2022
The right mortgage can make your dream of owning a home a reality. We researched and collected the best 15-year loan offers.
The Best 10-Year Mortgage Rates of 2022
The right mortgage can make your dream of owning a home a reality. We researched and reviewed the best 10-year mortgage rates, all collected here.
The Best Jumbo Mortgage Rates for 2022
The right mortgage can make your dream of owning a home a reality. We researched and reviewed the best jumbo mortgage rates, all collected here.
The Best 30-Year Mortgage Rates for 2022
The right mortgage can make your dream of owning a home a reality. We researched and reviewed the best 30-year mortgage rates, all collected here.
Compare Today's Best Mortgage Refinance Rates
Compare mortgage refinance rates across 18 different products, from 30-Year Fixed to 5/6 ARMs and everything in between.
When Is Mortgage Insurance Tax Deductible£
Homeowners who took out or refinanced a mortgage after Jan. 1, 2007, may qualify for the PMI deduction, depending on their income.
10 Popular Alternatives to PayPal
There are 10 popular alternatives to PayPal to facilitate online payments.
Asian Development Bank Definition
Founded in 1966, the Asian Development Bank's headquarters are in Manila, Philippines. Its primary mission is to foster growth and cooperation in the region.
SWOT Analysis
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning.
What Is the Monte Carlo Simulation£
The Monte Carlo simulation is used to model the probability of different outcomes in a process that cannot easily be predicted.
Negative Assurance Definition
Negative assurance is a representation by an auditor that particular facts are believed to be accurate since no contrary evidence has been found.
Donor-Advised Fund Definition
A donor-advised fund is a private fund administered by a third party to manage charitable donations for an organization, family, or individual.
What Is Market Capitalization£
Market capitalization is the total dollar market value of all of a company's outstanding shares.
Macroeconomic Factor Definition
A macroeconomic factor is an economic, environmental, or geopolitical event that broadly affects a regional or national economy.
Consumer Price Index (CPI) Definition
The Consumer Price Index (CPI) measures change over time in the prices paid by consumers for a representative basket of goods and services.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company’s overall financial performance.
Capital Project Definition
A capital project is a big, long-term project to build upon, improve, or maintain a significant piece of property that is meant to last.
Disney Earnings: What Happened with DIS
Disney's (DIS) Q3 earnings and revenue both beat analyst expectations. Disney+ subscribers also topped predictions.
Debt-to-Equity (D/E) Ratio
The debt-to-equity (D/E) ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.
What Is Earnest Money£
Earnest money is a deposit made to a seller, often in real estate transactions, that shows the buyer's good faith in a transaction.
Merton Model Definition
The Merton model is a mathematical formula that can be used by stock analysts and lenders to assess a corporation's credit risk.
What Is a Tariff£
A tariff is a tax imposed by one country on the goods and services imported from another country.
Locked-In Retirement Account (LIRA) Definition
A Locked-In Retirement Account (LIRA) is a Canadian registered retirement savings account that does not permit early cash withdrawals.
Socially Responsible Investment (SRI) Definition
Socially responsible investing looks for investments that are considered socially conscious because of the nature of the business the company does.
What Happens to Your Debt When You Die£
Depending on the type of debts you have, your loved ones may have to repay money you owe after you die. Here’s how to protect them financially.
Investing in Tesla Stock (TSLA)
Before investing in Tesla, read here to understand its core business, company history and relevant news developments.
Stamp Duty Definition
A stamp duty is a tax that a government imposes on certain legal documents, usually involving the transfer of property or other assets.
What Is Cost Per Click (CPC)£
Cost per click is an online advertising revenue model by which publishers charge advertisers each time a user clicks on a display ad.
Spoofy Definition
Spoofy is the nickname for a mysterious cryptocurrency trader who allegedly manipulates bitcoin and crypto prices. Spoofy is named after spoofing, a strategy considered illegal in equity exchanges.
Standstill Agreement Definition
A standstill agreement is a contract that contains provisions that govern a bidder of a company.
Canada Pension Plan (CPP) Definition
The CPP or Canada Pension Plan is one of three levels of Canada's retirement income system responsible for paying retirement or disability benefits.
Consumer Price Index For All Urban Consumers (CPI-U) Definition
The Consumer Price Index For All Urban Consumers measures monthly change in U.S. consumer prices.
MBA vs. Master’s in Finance or Economics: The Main Differences
The decision between earning an MBA or a more specialized master’s degree in economics or finance can be based on many factors.
How Charities Make Money
Charities have their dry periods when donations are scarce. Fortunately, they have a number of revenue streams that help them add to their coffers.
Coinbase Earnings: What Happened with COIN
Coinbase's (COIN) earnings missed analyst expectations while revenue matched. Trading volume also fell short of predictions.
What Is Discounted Cash Flow (DCF)£
Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity.
What Is the Kimchi Premium£
Kimchi premium is the gap in cryptocurrency prices, notably bitcoin, in South Korean exchanges compared to foreign exchanges.
What Is a Non-Compete Agreement£
A non-compete agreement is a contract where an employee agrees not to compete with an employer after the employment period is over.
Dead Cat Bounce Definition
A dead cat bounce is a temporary recovery of asset prices from a prolonged decline or bear market that's followed by a continuation of the downtrend.
Fuzzy Logic Definition
Fuzzy logic is a mathematical logic that solves problems with an open, imprecise data spectrum. Read how to obtain accurate conclusions with fuzzy logic.
What Are 6 Discontinued & Uncommon U.S. Currency Bills£
There are several currency denominations that the U.S. Treasury has discontinued or that are considered rare.
Micron Warning Rattles Chip Stocks
It’s been a tough week for chip stocks. On Monday, Nvidia had warned its revenues would be well below its guidance as gaming revenue slowed.
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