Overnight Rate
What is the Overnight Rate? The overnight rate refers to the interest rate that depository institutions (e.g., banks or credit unions) charge each other for overnight lending. Note that the overnight rate is called something different in different countries. For example, in the United States, it is known as the Federal Funds rate, while in...
Income Investing
What is Income Investing? Income investing is an investment strategy that is centered on building an investment portfolio specifically structured to generate regular income. The sole objective of the income investing strategy is to generate a constant stream of income. The constant income can be in the form of dividends, bond yields, and interest payments....
Short-Term Investments
What are Short-Term Investments? Short-term investments are assets that can be converted into cash or can be sold within a short period of time, typically within 1-3 years. Common instruments for short-term investing include short-term bonds, Treasury bills, and other money market funds. Short-term trading or day trading entails a significant degree of speculation and,...
Growth Stocks vs Value Stocks
What are Growth Stocks vs Value Stocks? In this article, we will talk about the key features and differences between growth stocks vs value stocks. Definition Growth stocks are stocks that come with a substantially higher growth rate compared to the mean growth rate prevailing in the market. It means that the stock grows at...
Absolute Return
What is Absolute Return? Absolute return can be defined as the return, i.e., absolute gain or loss, an investment generates over a specific period of time. The gain or loss is expressed as a percentage of the total investment. How is Absolute Return Calculated? Absolute return is calculated as follows: Say, for example, an investor...
