Reserve Requirements: A Definition, History, and Example
What Are Reserve Requirements? Reserve requirements are the amount of cash that financial institutions must have, in their vaults or at the closest Federal Reserve bank, in line with deposits…
What Is a Bear Market? Definition and How to Invest During One
When assets plummet 20% from recent highs, Bear markets are among the scariest market events you’ll encounter. But long-term investors can stay the course. The words “bear market” strike fear…
Shareholder (Stockholder): Definition, Rights, and Types
What Is a Shareholder? A shareholder is a person, company, or institution that owns at least one share of a company’s stock or in a mutual fund. Shareholders essentially own…
Law of Supply and Demand in Economics: How It Works
What Is the Law of Supply and Demand? The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or…
What Is a Certificate of Deposit?
A certificate of deposit (or CD) is considered a type of savings account, but a CD holds your money for a fixed time period in exchange for a higher rate…
IRS News – February 10th – 2023
The Internal Revenue Service, or IRS, is a public authority of the United States Federal Government. The IRS is responsible for all tax collection and controls the implementation of tax…
Annual Percentage Rate (APR): What It Means and How It Works
What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed…
Unrealized Gains & Losses, Explained
What Are Unrealized Gains and Losses? Unrealized gains and losses are the changes in the value of an investment, such as stocks or bonds, that have occurred since an investor…
What Are Penny Stocks & How Do They Work?
Penny stocks are shares of small companies that trade for less than $5 per share. They are highly speculative investments, meaning they carry a high risk. Usually, traders looking for…