The volatility of a stock refers to the fluctuations in the stock’s price over a period of time. When someone refers to a stock as highly volatile, they generally mean that the price of [...]
Purchasing Power
In the traditional economic context, purchasing power refers to the amount of goods or services that a single unit of currency can buy. That is, how far your dollar can take you. It takes [...]
ETF Fundamentals
An ETF, or Exchange Traded Fund, is a security that tracks an index, commodity, or sector. ETFs are comparable to mutual funds in that both hold a pool of assets. Generally, when you buy [...]
Diversification
Used in the investment management context, to diversify means to spread your investment over a variety of securities so that the positive gains of some, neutralize the negative performance of others. In order for [...]