Term of the Day

discount rate

The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being ... Read more

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Investing Tip

Lessons to Learn from a Market Downturn (3 of 7)

by Stephanie Powers

Proper Risk Management: You thought an investment was risk-free, but it wasn't. The lesson: Every investment has some type of risk. You can attempt to measure the risk and try to o ...

Covered Calls

Another basic strategy is the covered call, which is a two-part strategy. First you must own 100 shares of the underlying stock. Then a call is sold and the ris...

Price Appreciation Benefits for Calls

You will profit from covered call writing when the underlying stock’s current market value is higher than the price you paid for the stock. In that case, ...

Analyzing Stock Values

If you consider the striking price to be fair and reasonable for 100 shares of the underlying stock, selling puts has two advantages: You receive cash at the po...

Avoiding an Options Call Exercise

If you sell a call on stock originally purchased as a long-term investment, you might want to take steps to avoid exercise. This is not contradictory; as a spec...

How to Find the Right Stock Broker For Your Needs

Picking a broker is going to be a main decision when you decide to invest, as they are going to be taking a chunk of your hard earned money every time you place...

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