The “rule of 72″ is a quick and simple way to figure out approximately how long it will take for an investment to double. You just divide 72 by how much interest you earn on an investment per year – that’s it. So if you put $100 into an account that pays 6% interest, it’ll take 12 years for your principal to double to $200 (72÷6=12).
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The Rule of 72 is…
Monday, August 10th, 2009A Floor Broker is…
Monday, August 10th, 2009A floor broker is the person actually on the trading floor of a physical exchange buying and selling stocks, futures, options, commodities, or other contracts for clients. Floor brokers are also sometimes called pit brokers.
An Investment Analyst is…
Monday, August 10th, 2009An investment analyst is someone who performs market or company specific analysis for external or internal clients as part of his or her job. The investment analyst researches financial instruments and markets in order to make decisions on actionable securities.
An Investment Adviser is…
Monday, August 10th, 2009An investment adviser is someone who gives advice about securities to clients. In other words, someone who gets paid to give advice on stocks, bonds, mutual funds or other financial instruments are investment advisers.
Gross Income is…
Monday, August 10th, 2009Gross income is the total amount of money you make in a year before any taxes or other deductions are taken into account.
A Write-off is…
Monday, August 10th, 2009A write-off is the cancellation of an asset or debt from an account because the asset is worthless or the debt can’t be collected. For example, if you own stock in a company that goes bankrupt, that stock isn’t worth anything anymore, even though you technically still own it. So you remove the asset from your account (since it’s basically just a waste of space now), and call it a write-off.
A Warrant is…
Monday, August 10th, 2009A warrant is a right that allows an investor to buy or sell a company’s stock at a given price in the future – the price can be higher or lower than the stock’s current value. For example, if in the future a stock rises above the warranty price, then the investor could make money (he could buy the stock below market-value), but if it doesn’t then his warrant is – sadly – useless.
The Nikkei is…
Monday, August 10th, 2009The Nikkei is the price-weighted average of 225 stocks listed in the first section of the Tokyo Stock Exchange. Think Dow Jones Industrial Average… for Japan.
An Odd Lot is…
Monday, August 10th, 2009An odd lot is a trading order that consists of less than 100 shares.