A floating rate debt security traded among qualified institutional buyers (QIBs) and originated by German financial firm Deutsche Bank. The receipts pay a yield equal to a fixed base interest rate minus the floating rate of a benchmark (such as LIBOR+). As such, the interest rate paid moves inversely to the direction of the variable rate itself. LIFERs fall under municipal … [Read more...]
How to compare companies for Investment
An investment company pools out lots of money accumulated from many investors into one investment vehicle.The goal is to benefit from the management of a professional investment adviser and lower management fees. Investment companies come in three basic types: closed-end open-end and unit investment trusts (UITs). All are monitored and regulated by the Securities and … [Read more...]
Describing the Stock Market Buy Limit
A "Buy Limit Order" is one of the most common stock trading order types that are used by active traders today.A fundamental stock market trading technique is the limit order. Buy and sell limit orders are designed to give the trader a certain degree of "protection" over market volatility. Definition According to the Securities and Exchange Commission, a limit order is an … [Read more...]
Day Trading Vs. Long-Term Investing
The act of investing is laying out money or capital in an enterprise with the expectation of profit. Investing is putting money into stocks, bonds, mutual funds, real estate, or some other financial vehicle, with the hopes that it will grow and earn profit . There are two personal styles of investing i.e day trading and long-term investing. Day Trading Day trading refers … [Read more...]
How to Liquidate Investment CDs
CDs are certificates of deposit , forms animportant part of an investment portfolio. They provide locked-in returns, which will insulate an investor from the ups and downs of the market. However, there comes a time when it makes sense to liquidate a CD. Whether using the money for a car, down payment on a home, college tuition or even if you're deciding to move it to another … [Read more...]