In economics, there are two terms that closely relate to each other. These include inflation and money supply. The money supply in a country can have a direct effect on its rate of inflation. However, it is necessary to understand what each of these is before discussing their relationship. What …

What is a Real Estate Investment Trust? A real estate investment trust (REIT) is an investment fund or company that owns income-producing real estate. These trusts resemble mutual funds as they pool the capital of various investors. REITs are well-known for providing large dividends to investors with constant growth over …

When it comes to investing, investors mostly prefer stocks. It is because these investments come with a wide range of options available. Investors can make informed decisions due to the frequency of transactions involved with stocks and the information available. However, investors also use some diversification techniques to manage their …

A derivative is a financial security that derives its value from an underlying asset or group of assets. In these securities, the underlying asset acts as a benchmark for its value. Derivatives can come as a contract between two or more parties. There are various types of derivatives based on …

Derivatives are financial securities that get their value from an underlying asset or group of assets. These are contracts between two or more parties where the derivative’s value varies with fluctuations in the underlying asset. These assets may include stocks, bonds, currencies, interest rates, commodities, etc. Derivatives are prevalent in …

What are Options? Options represent financial instruments that derive their value from underlying securities, such as stock, etc. These are common in options contracts, which offers buyers the opportunity to buy or sell the underlying asset. Options are different from futures which do not require the holder to buy or …

Margin accounts are a type of brokerage account that allow investors to trade on margins. These accounts come with several features, allowing investors to benefit from them. However, there are some risks that investors must bear with these accounts as well. One such risk is that of a margin call. …

Investors can buy stocks on margin from a brokerage firm. It allows them to lend money from the brokerage firm and make investments. However, the brokerage firm holds the stock as collateral for the transaction. These margin accounts may come with various requirements set by the federal jurisdiction. These requirements …

With a brokerage account, investors can deposit money with a licensed brokerage firm that conducts trades on their behalf. The broker handles the investor’s finance on their behalf. There are various types of brokerage accounts that investors can avail. Among those, there are also margin and cash accounts. There are …

What is a Credit Facility? A credit facility is a type of loan that companies or businesses can avail of. It comes preapproved from a financial institution, usually a bank. With a credit facility, companies can borrow money when they need it, for short-term or long-term use. It means that …