What the hell is: An Option? »

What the hell is: An Option?

If you’ve been around investors or financial advisors, you may have heard about something called an option. Options are contracts on stocks that can guarantee a buy or sell price. Option contracts are made between investors. They have a cost (called a premium) and they can be exercised by the buyer once the stock that [...]

What the hell is: CDSC? »

What the hell is: CDSC?

I love acronyms. They make everything seem so much fancier than it really is. I feel more important when I use acronyms. Then, when I see the look of fear and confusion in the eyes of the person I’m speaking to, I feel so powerful. I roll my eyes and sigh, and then go on [...]

What the hell is: Selling Short? »

What the hell is: Selling Short?

I read an article yesterday about how now–yes, right now–is a great time for short selling. Now, I’m not a real big stock market analyst or timing advisor, so I’m not going to say whether or not I’m bearish about the market. What I’m going to do is explain the long and short of short [...]

What the hell is: Buying Bonds at a Premium? »

What the hell is: Buying Bonds at a Premium?

After an extended break, I am back to tell you what it means to buy a bond at a premium. Hope you weren’t here waiting that entire time….
Bonds have a par value/price–one bond is usually $1,000. On top of that, you have a coupon rate (which is the interest rate you earn on the bond [...]

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