The most comprehensive educational resources for finance

How to Compare Mutual Fund Performance

Mutual funds are a very effective way for small investors to get exposure to financial markets. Rather than investing in individual equities and bonds, a mutual fund investor gets access to a diversified portfolio of securities at a low cost. With diversification in place, a mutual fund allows you to form an effective investment strategy

What is CEF Expense Ratio and how is it calculated?

A CEF refers to a close-end fund, which is a registered investment company similar to a mutual fund, unit investment trust or an exchange-traded fund. Just like mutual funds, the closed-ended funds also have an expense ratio which is regularly reported to investors. The expense ratio refers to the total cost to an investor for

Top Investing Tools to Help you Excel at Investing

Products to help you learn, explore, and excel at investing and managing your money. Hello Money Hello Money lets you design your portfolio from 24,000+ funds and stocks. Hello Money allows you to easily design, share, and track portfolios to become a better investor. Simply Wall Street Simply Wall Street provides a new visual way

The Pros And Cons Of Structured CDs

The stock market has been on quite a ride this year, with the DJIA up over 22% to date. On the other hand, we all remember the dark days of the banking crisis, and are perhaps wary of another period of turbulence on the exchanges. This is made all the more acute by the recent

How to Buy Shares

Shares are one of the most important and lucrative investment classes. Some of the richest people in the world have created their wealth by investing in stock markets. While the creation of wealth is a long and systematic process, the first thing that you need to do is to complete the formalities and be ready

Global Depositary Receipts

Global Depositary Receipts (GDRs) give issuers exposure to the global markets outside their home market. Depositary receipts are negotiable certificates issued by a bank to represent the underlying shares of stock. The underlying shares are held in trust at a foreign custodian bank. GDRs refer to certificates traded outside the US. Even though they may not

American Depositary Receipts (ADRs)

American Depositary Receipts (ADRs) offer the issuing company access to the US capital market and at the same time provide investors in the US with a convenient way to directly invest in international companies. ADRs are dollar-denominated securities that trade, clear and settle like any other US security. They are a negotiable instrument that represents

Class A and Class B Common Stock

A company can also issue various classes of common stock, such as Class A and Class B, with each class having different features. One class may have higher voting power, while the other may have higher dividends. For example, Class A shares may have 1 vote per share and 100% of dividends. Class B shares

Voting Systems: Statutory Voting and Cumulative Voting

Common shares provide voting rights to the shareholders which provide the shareholders the ability to participate in major corporate decisions such as election of directors, mergers and acquisitions, selection of auditors, etc. When electing the members of the board of directors, there are two commonly used methods of voting: Statutory Voting and Cumulative Voting. Under the

Convertible Preference Shares

Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. The ratio of how many common shares an investor will get for each preference share is called conversion ratio. An investor has many advantages in buying convertible preference shares instead of directly buying common shares.