In simple terms an Exchange Traded Fund (ETF) is like a mutual fund, the only difference is that ETF can be traded on the stock market. An ETF is a fund which invests in an index, commodity, sector, theme or an asset. The value of these is based on the underlying asset that the it is invested in.
Market capitalization or market cap refers to the size of the company, which is calculated based on the market price of the company’s shares and the number of its outstanding shares. In other words, its the market value of a company that is determined by the stock market.
When it comes to investing, you have probably heard the age old adage, “don’t put all your eggs in one basket.” You probably are tired of listening this many times. But it actually is very important when it comes to protecting your wealth and assets from unncessary risk.
I came across Bladder Theory when I read Peter Lynch’s book “One Up on Wall Street”. Its an amazing book about the stock market and is very easy to understand for the advanced-beginner/competent investor, who wants to learn more about the stock market.
Dividend investing is a way of investing in which a person buys shares of companies that regularly pay dividends and have a good dividend yield. Now in case you do not know what dividend means then let me tell you about it. When a company earns profits, it can either use those profits for expansion and research and development of the company or they may pay it to their shareholders. The net profits earned by the company are divided among the shareholders and paid to them as dividends.