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Investing in Stocks and Bonds Articles

Callable Bonds

Callable or redeemable bonds are bonds that are redeemable or callable by the bond issuer before they have matured.

A Guide to Investing in Bond Funds

Bond funds primarily invest in debt securities such as zero coupon bonds, mortgage backed securities, convertible bonds, corporate bonds, municipal bonds, or government bonds.

The T+3 Cycle Rule in Securities Trading

The T+3 cycle is the period within which an investor must settle his obligations with the brokerage firm that facilitated the trade. Learn the 4 things you should know about the T+3 Cycle Rule.

Bond Funds Safety

A common misconception among many investors is that bond funds present little or no risk. However, bond funds are also subject to a number of investment risks.

Convertible Securities: Convertible Bonds Explained

Know more about convertible bonds: generally, a convertible bond provides its holder with the option to convert the bond into a predetermined number of shares of stock in the issuing company.

Introduction to Microcap Stocks

Before you consider investing in microcap stocks, gather as much information as possible. This article will try to get you familiar with at least the basics of micro cap stocks.

Technology Stock Characteristics

Technology stocks represent one of the most attractive investment solutions. However, technology stocks are not deprived of their drawbacks.

Foreign Stock Characteristics

In today’s global economy investors are given the opportunity to purchase stocks of foreign companies. Foreign stocks provide an additional piece of diversification to your portfolio.

Small Cap Stocks Characteristics

In order to classify a stock as of small cap character its market value should be below $1 billion. Small cap stocks are generally considered to be highly volatile and if market conditions are not stable, they can carry a high level of risk.

Large Cap Stock Characteristics

The biggest players in the stock market are companies that have large market capitalization. Due to their large market capitalizations, such companies tend to have a major influence over the economic activities.

Investing in REITs - Advantages and Disadvantages

REITs stand for Real Estate Investment Trusts. REITs are most often viewed as alternative to bonds and trade much like stocks on the major stock markets.

Mega Cap Stocks in Your Investment Portfolio

If you expect that bad economic times are nearing you should make sure that you put mega cap stocks in your portfolio in order to benefit from the relative security provided.

Government Deficit and Stock Investors

Is the government deficit good for stock investors or not? And how can investors determine the effect of such a deficit on their investing?

Earnings Reports and Their Importance

Every quarter companies issue a report on the earnings they have generated. The failure to meet the expectations of the market analysts may result in a fall of the stock price of the company.

Stock Value Focus

You should be aware that price and value are different concepts and they should not be confused. For investors value is what matters.

Preferred Stocks Disadvantages

Despite their name, preferred stocks are less preferred than common stocks. So, unless you have firmly decided that a particular preferred stock exactly meets your financial goals, you should get familiar with their disadvantages.

Stocks and Inflation Rate

Inflation can eat up a substantial part of your earnings. So, whenever the levels of inflation go out of control you should be very careful about the negative impacts it may have on your investments.

Real Rate of Return on Investment Calculations

Everyone is interested in the real rate of return on the investments that have been made. However, many investors forget to adjust the rate to inflation and taxes, and as a result don't get real numbers.

Bond Default Risk

Even though they are characterized by high levels of security, bonds do bring their dangers and risk of bond default exists.

Types of Bonds

By definition, bonds represent a way for borrowing money from the public. Bonds are famous among investors for the high level of stability and security they offer.

US Treasury Bonds vs US Treasury Notes

While US treasuries are offered through qualified financial institutions or brokers, treasury notes are directly offered by the US Treasury at auctions.

Bond Tax Rules

Most financial advisors recommend the inclusion of bonds in every investment portfolio since they provide security in volatile market conditions. However, there are certain tax implications that you should keep in mind when you decide to purchase bonds.

Investing in Both Stocks and Bonds

Almost every financial expert recommends the inclusion of both stocks and bonds in investment portfolios. Since bonds are characterized by higher security, whereas stocks with higher volatility the first can be used as a tool to balance the negative effects of the latter.

Bond Prices and Bonds-Interest Rates Relationship

Bonds represent a good investment tool for investors that are not comfortable with risk. However, investors should pay special attention to the levels of interest rates since they play an important role in the determination of the value of bonds.

US Treasury I Bonds Basics

If you want your principal to be guaranteed and to exempt yourself from taxes on the generated income, I Bonds may be the investment solution you need.

Convertible Bonds Basics

In order to decide whether you should own convertible bonds or not you should make a careful consideration of both the negative and positive sides and see whether they represent the tool that coincides with your financial goals.

Bond Ladder Basics

In order to protect yourself against the fluctuations of interest rates while you continue to manage the cash flow from the bond investment the bond ladder can be applied.

Zero Coupon Bonds Tax Implications

Even though zero coupon bonds provide many opportunities to their holders they lack tax efficiency. Therefore, you should deal with them with great caution.

Zero Coupon Bonds Basics

Zero coupon bonds (also known as zeros) don’t give their holders interest rate payments on regular basis. However, the interest rate is accumulated and paid at maturity.

Municipal Bonds Tax Dilemmas

A recent trial held in the US Supreme Court is about to endanger one of the benefits of purchasing a municipal bond. Namely, if an investor purchases an issue from the state of which s/he is a resident of, the bond is free from state income tax.

30-Year Long US Treasury Bond

In October 2001 the US Treasury’s 30-year bond was again issued. This bond is commonly called the “long bond”. The long bond is preferred by many investors for its security.

Bond Definition and Concepts

Many financial experts recommend the combination of stocks and bonds in investment portfolios. Bondholders are classified as creditors, whereas stockholders are referred to as company owners.