Blue-Chip Stock

A term, derived from the most expensive chips in a poker game, used to indicate the stock of companies with long records of growth and profitability; i.e., the company has been growing and has been paying dividends for a long time.…

Advance Directives for Health Care

Advance directives for health care are legal documents that enable you to plan for and communicate your end-of-life decisions in the event that you are unable to speak for yourself. Thoughtfully prepared advance directives can ease the burden on those who must make health-care decisions for you. Without advance directives, decisions might be made by doctors, family members, and sometimes even judges who may know little about your wishes. Advance directives give you a voice in decisions about your medical …

Annual Report

A report that public companies are required to file annually that describes the preceding year’s financial results and plans for the upcoming year. Annual reports include information about a company’s assets, liabilities, earnings, profits, and other year-end statistics. If the public can buy stock in a company, that company has to issue a report every year that explains how well it did in the past year and what its strategy is for next year. The report includes what the company …

Bond

A bond is a debt security, similar to an I.O.U. When purchased, a
bond is a loan to some entity. These entities may
include corporations, the US government, local municipalities,
federal agencies, and foreign governments.

The ‘issuer’ of the bond agrees to pay the buyer of the bond a specified rate of interest for a pre-determined length of time. The issuer will repay
the face value of the bond (the principal) when it “matures,” or comes
due.

A corporation may …

Diversification

You can do several things to offset the impact of some types of risk. Diversifying your investment portfolio by selecting a variety of securities is one frequently used strategy. Done properly, diversification can reduce about 70 percent of the total risk of investing. Think about it. If you put all your money in one place, your return will depend solely on the performance of that one investment. Alternatively, if you invest in several assets, your return will depend on an …

Stock

In finance: A certificate representing a share of ownership in a company. Stock is the ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets. There are many kinds of stocks, the most widely known being common stock, which usually entitles a stockholder to vote in the election of directors and other corporate matters.

In viticulture: Grape variety used as the underground portion of a grafted vine onto which the scion

Bankruptcy

 

What is Bankruptcy?

Bankruptcy is a proceeding in a federal court in which a debtor who owes more than his or her assets can receive debt relief by transferring his or her assets to a trustee or agreeing to reorganization of assets and liabilities. Usually, at least two years must elapse from the discharge of the bankruptcy before lenders will consider making a loan to someone who has declared bankruptcy.

When is Bankruptcy an Answer?

Bankruptcy may be an answer …

Asset Allocation

Asset Allocation

Asset allocation is dividing a portfolio among major asset categories such as bonds, stocks, real estate, and cash to reduce the risk of the portfolio. If one investment loses a lot of value, diversifying limits how much money will be lost and reduces the risk of giving up everything you put in. The downside of diversification is that if one investment gains a lot of value, not too much money will be made.

In the final analysis, your …