Investing

A downgrade is a negative change in the rating of a security. … Multiple organizations provide sell-side research and rate securities with a buy, hold, or sell rating. A downgrade of stock would be moving the rating from a buy to a hold, or a hold to a sell.

Market capitalization is the total dollar market value of all of a company’s outstanding shares.

Learn about the leading U.S. stock market indexes and get an introduction to how they are utilized in the market.

Are you a trader or an investor? Well, it depends on how you want to approach time, activity, and risk. Learn about the differences between a long-term investor and a short-term trader, so you can decide what’s best for you.

There are numerous job reports including weekly jobless claims, Job Openings and Labor Turnover Survey (JOLTS), and the ADP Employment report, but the Employment Situation report is the most comprehensive jobs report because it tracks the unemployment rate, Nonfarm Payrolls, the workforce participation rate, and average hourly earnings. Many investors use this report to gauge economic strength. At times, it can even move the markets, so it’s important to understand the Employment Situation report. 

When placing trades, the order type you choose can have a big impact on when, how, and at what price your order gets filled. We’ll break down three common order types: market orders, limit orders, and stop orders. 

The price-to-earnings, or P/E, ratio compares a stock’s price to its annual earnings per share, or EPS. It measures how much an investor is paying for a stock compared to each dollar of a company’s annual earnings. Investors often use the P/E ratio to compare the valuation of two or more companies and help determine if a stock is overvalued or undervalued. 

Ever notice how stock prices sometimes jump after company earnings announcements? This video explains why this happens and how quarterly earnings reports or stock earnings can help investors evaluate a company’s financial condition to determine whether a stock is a good investment.

Stock prices have momentum—–this means that stocks going up tend to continue to go up, and stocks going down tend to keep going down. Investors use what’s referred to as momentum indicators to help them identify potential entry and exit signals. In this video, we’ll show you what a momentum indicator is, explain how to use it, and discuss some of its risks.

The relative strength index, or RSI, helps some investors determine whether stocks might be overbought or oversold. Learn how it works, and how it can help traders analyze trends and identify potential opportunities when they decide to buy or sell stocks.

Bollinger Bands are a technical indicator that help investors define trends and determine if a stock is overextended and might reverse. Bollinger Bands can also help investors identify and time potential entries and exits.

A clear view of a stock’s trend can help investors decide when to buy, sell, or hold a position. However, identifying trends can be tough. Some technicians use an indicator known as a simple moving average to confirm established trends. Watch this video to learn more about this tool—what it does, how it’s calculated, and the pros and cons of applying it to different time frames.

Many professional stock traders use technical indicators to help them with trade timing or to alert them of new trends. Here’s what they are all about.

Fundamental analysis and technical analysis, the major schools of thought when it comes to approaching the markets, are at opposite ends of the spectrum. Here are the differences between the two.

Saving for retirement can be intimidating, but it doesn’t have to be. These videos will walk you through different strategies and help you create a retirement plan so you can feel at ease about your financial future.

New to investing? Learn the basics of stocks, bonds, mutual funds, and more. These short explainer videos will guide you through your investment options and introduce you to investing strategies.

A V-shaped recovery refers to a type of economic recession and recovery that resembles a “V” shape in charting.

An earnings call is a conference call between a public company, analysts, investors, and the media to discuss the company’s financial results.

Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder’s ownership percentage of that company.

Capital gain refers to an increase in a capital asset’s value and is considered to be realized when the asset is sold.

A bubble is an economic cycle that is characterized by a rapid economic expansion followed by a contraction.

A bond rating is a grade given to bonds that indicates their credit quality.

A blue-chip stock is a company that typically has a large market cap, a sterling reputation and many years of success in the business world.

Basis points (BPS) refers to a common unit of measure for interest rates and other percentages in finance.

In this short animated video see how annuities work, what they are, and how annuities can help provide retirement income.

Annuities are financial products provided through your insurance company. They address the risk of outliving your savings.

An annual report describes a company’s operations and financial condition to stakeholders, and is required by regulators.