Tag

Investing Archives - Page 2 of 12 - Wealthspire | Page: 2

Money Market Fund

Financial Dictionary
What is a Money Market Fund? A money market fund is a mutual fund with investments in high-yield money market instruments such as federal securities, CDs, and commercial paper. The intent is to make such instruments (normally purchased in large denominations by institutions) available indirectly to individuals. Are Money Market Funds a Safe Investment? Money markets are relatively safe because money in these accounts is invested in low-risk, short-term securities. Money market funds are still susceptible to volatility and although it may be lower than other vehicles, there is still some risk involved. How Does a Money Market Fund Work?…
Read More
stocks covid

Small Cap

Financial Dictionary
What is a Small Cap Stock? Small cap refers to the market capitalization of stocks of companies with market values less than $2 Billion. Company’s stocks are generally referred to as large cap, mid cap, or small cap. What is the Difference Between Small, Mid, and Large Cap? Small cap companies are smaller in size and are generally valued between $300 Million and $2 Billion. Since they are less established than larger companies, they have more room to grow and potential to produce higher returns, but this can also mean more severe effects of volatility in the market. Mid-cap companies…
Read More
stocks covid

Mid-Cap

Financial Dictionary
What is a Mid-Cap Stock? Mid-cap refers to the market capitalization of stocks of companies with market values between $2 and $10 Billion. Companies and their stocks are generally classified, based on valuation size, as large cap, mid-cap, or small cap. Are Mid-Cap Stocks a Good Investment? Mid-caps are appealing because they split the difference between the risks and rewards of small cap and large cap stocks. They can be a better investment than small cap stocks because they’re historically more financially stable and established. Mid-cap stocks may also be a better investment than large cap because they have more…
Read More

Asset Class

Financial Dictionary
Asset Class Definition Asset classes are securities with similar features and financial structure. These securities are also held to the same laws and regulations. The most common asset classes are stocks, bonds, and cash equivalents.  List of Asset Classes The main asset classes include the following, however these are not the only asset classes. Equities Cash and Cash Equivalents Bonds or Fixed Income Investments Alternative Investments Commodities Gold Global Markets Real Estate (REITS) Global Fixed Income Why is It Important to Understand Asset Classes? Considering asset classes generally adhere to the same financial structure, rules, and regulations, they’re also likely…
Read More

Exchange Traded Funds (ETFs)

Financial Dictionary
What Is an ETF? Exchange-traded funds are very similar to mutual funds, except that they trade throughout the day on stock exchanges as if they were stocks. This means you can actually pay more or less than the value of the underlying holdings in the fund.  What Is the Difference Between an ETF and a Mutual Fund? While mutual funds track indexes, they are actively managed by an investor buying or selling assets within the fund. ETFs are mostly passive and aren’t managed, and they track a specific market index, like the S&P 500, to try and match their performance.…
Read More
college savings

Blue Chip

Financial Dictionary
Blue Chip Meaning A blue chip is a high-quality, relatively low-risk investment; it usually refers to stocks of large, well-established companies that have performed well over a long period of time. The term is originally from poker, where the blue chips are the most valuable. What Is a Blue Chip Company? Blue chip companies are well-established, financially stable, and less risky to invest in. They are seen by investors as reliable and profitable as these companies perform well not only in good financial situations, but also in bad ones. Examples of blue chip companies are AT&T Inc., Bank of America,…
Read More
stocks covid

Large Cap

Financial Dictionary
Large Cap Definition Large cap refers to companies with market capitalization of the stocks with market values greater than $10 billion. Examples of large cap companies include, J.P. Morgan, IBM, and Johnson & Johnson.  What Are Large Cap Stocks? Large cap stocks are shares that trade for corporations with a market cap of over $10 billion. Additionally, large cap stocks represent most of the U.S. equity market. Therefore, theses stocks are often viewed as core investments to include in a portfolio.  Large Cap vs Small Cap Defining a company with the terms, ‘large cap’ or ‘small cap,’ refers to how…
Read More
investment letter

Market Capitalization

Financial Dictionary
What Is Market Cap? Market capitalization (Market Cap) refers to the value of all outstanding shares of a company's stock at the total dollar market value. Market cap is one way to look at the relative size of a company. Market Capitalization Formula The market cap is calculated by multiplying the total number of a company’s outstanding shares by the current market price of one share. For example, a company that has 20 million shares that are selling at $100 each would have a market cap of $2 billion.  Is Market Cap the Same as Equity Value? Although market cap…
Read More

Index Fund

Financial Dictionary
Index Fund Definition An index fund is a type of mutual fund with a portfolio designated to match or track the components of a market index. How To Invest in Index Funds Firstly, it is important to know that investing in index funds, or “indexing,”  is a form of passive fund management. Consequently, this means that instead of choosing securities to invest in and strategize their buy and sell periods, you want to create a portfolio that mimic the securities of a particular index - this is the either the entire stock market, such as the S&P 500, or a…
Read More