Response: Speculators can use futures contracts to bet on the future price of some asset or security. Hedgers use futures to lock in a price today to reduce market uncertainty between now and the time that good is to be delivered or received. Arbitrageurs trade futures contracts in or across related markets, taking advantage of theoretical mispricings that may exist temporarily.


What Is the Most Important Factor in My Credit Score?

Response: Your payment history is the single most important factor in your credit score. Paying on time every month will have the biggest impact on your credit history. Missing payments can lower your score quickly and significantly.


How Did European Countries React to the Smoot-Hawley Tariff Act?

Response: European nations greatly disfavored the Hawley Smoot Tariff. The Hawley Smoot Tariff prompted these countries to impose their own tariffs on foreign goods, especially those from the United States. These retaliation tariffs crippled international trade and worsened conditions during the Great Depression.


Response: Over time, the American dream has shifted from an ethos of equality and solidarity to one of individualistic competition to succeed materialistically, fueled by consumption. In the 1990s and early 2000s, mortgage company Fannie Mae began promulgating the notion that buying a home was a cornerstone of the American Dream, and use the term prominently in ads selling home loans. This ideology led to the housing boom and ultimate bubble that popped ultimately, leading to the 2008-09 financial crisis.


Response: With surety bonds, or promises to fulfill debts in default, there are three parties involved. The principal is the obligor. The surety is the party that agrees to pay the bond to the obligee if the obligor defaults. The obligee is typically a government agency.


Response: A nonprofit has no owners or shareholders. It is overseen by a board of directors that dictates and manages the operation of the entity.The executive director of a nonprofit reports to the board, and the board makes the final decisions on the programs that the nonprofit will pursue.


Response: Investors can establish long positions in securities such as stocks, mutual funds, or any other asset or security. In reality, long is an investing term that can have multiple meanings depending on in what context it is used. Holding a long position is a bullish view in most instances with the exception of put options.


Why Do Companies Give Out Restricted Stock?

Response: The use of restricted stocks is pivotal for the compensation and retention strategies of many firms. Companies use restricted stock for a few reasons. First, a long vesting schedule encourages employees to stick around for a longer period. Also, the value of restricted stock relies on the company's stock price, which can encourage employees to perform better.Next, unlike stock options, restricted stocks still retain some value even when the company's stock price declines, making them more stable compensation in volatile markets. Lastly, providing restricted stock can be tax-efficient for the company and the employee, depending on the jurisdiction and the specific restrictions on the stock put in place.


Response: In corporate America, the 1990s will be remembered as the decade of the internet bubble and the megadeal. The late 1990s, in particular, spawned a series of multi-billion-dollar acquisitions not seen on Wall Street since the junk bond fests of the roaring 1980s. From Yahoo!'s 1999 $5.7-billion purchase of Broadcast.com to AtHome Corporation's $7.5-billion purchase of Excite, companies were lapping up the "growth now, profitability later" phenomenon. Such acquisitions reached their zenith in the first few weeks of 2000.


Response: Although there is some debate about the origins of the name, the statistical technique described above most likely was termed "regression" by Sir Francis Galton in the 19th century to describe the statistical feature of biological data (such as heights of people in a population) to regress to some mean level. In other words, while there are shorter and taller people, only outliers are very tall or short, and most people cluster somewhere around (or "regress" to) the average.


What is the biggest disadvantage of universal life insurance?

Response: A big disadvantage is that you need to keep an eye on the cash value. If you don’t, then the policy could become underfunded, meaning you’ll have to make big payments to keep the policy active. Also, there is risk that when interest rates drop, your cash value won’t grow as much as you had hoped. However, there is typically a minimum interest rate, so you’re somewhat protected.


What Is the Difference Between the Rule of 72 and the Rule of 73?

Response: The rule of 72 primarily works with interest rates or rates of return that fall in the range of 6% and 10%. When dealing with rates outside this range, the rule can be adjusted by adding or subtracting 1 from 72 for every 3 points the interest rate diverges from the 8% threshold. For example, the rate of 11% annual compounding interest is 3 percentage points higher than 8%.Hence, adding 1 (for the 3 points higher than 8%) to 72 leads to using the rule of 73 for higher precision. For a 14% rate of return, it would be the rule of 74 (adding 2 for 6 percentage points higher), and for a 5% rate of return, it will mean reducing 1 (for 3 percentage points lower) to lead to the rule of 71.For example, say you have a very attractive investment offering a 22% rate of return. The basic rule of 72 says the initial investment will double in 3.27 years. However, since (22 – 8) is 14, and (14 ÷ 3) is 4.67 ≈ 5, the adjusted rule should use 72 + 5 = 77 for the numerator. This gives a value of 3.5 years, indicating that you'll have to wait an additional quarter to double your money compared to the result of 3.27 years obtained from the basic rule of 72. The period given by the logarithmic equation is 3.49, so the result obtained from the adjusted rule is more accurate.For daily or continuous compounding, using 69.3 in the numerator gives a more accurate result. Some people adjust this to 69 or 70 for the sake of easy calculations.


How Much Money Do I Need for Algorithmic Trading?

Response: The amount of money needed for algorithmic trading can vary substantially depending on the strategy used, the brokerage chosen, and the markets traded.


What Is the Purpose of the Private Sector?

Response: In addition to generating profits, the private sector provides employment opportunities, delivers specific goods and services, helps develop industries or technologies, enables the functioning of a diverse group of businesses, and adds to the national income.


Response: Future value is used for planning purposes to see what an investment, cashflow, or expense may be in the future. Investors use future value to determine whether or not to embark on an investment given its future value. Future value can also be used to determine risk, see what a given expense will grow at if interest is charged, or be used as a savings target to understand whether enough money will be reserved given the current pace of savings and expected rate of return.


What Is the Difference Between the Fisher Transform Indicator and the Moving Average Convergence/Divergence ?

Response: The Fisher Transform Indicator and moving average convergence/divergence are two different indicators that are used in technical analysis. Both of these tools provide traders with valuable information about trend signals. The Fisher Transform Indicator normalizes asset prices by transforming them while the MACD depends on moving averages and can be used in trading strategies involving short-term trends. The Fisher Transform Indicator is generally considered to be more accurate because it provides a clearer picture of how the market is moving.


What is the difference between MBS and ABS?

Response: An asset-based security (ABS) is similar to a mortgage-backed security (MBS). Both are securities that, like bonds, pay a fixed rate of interest derived from an underlying pool of income-generating assets—usually debts or loans. The main difference is that an MBS, as its name implies, consists of a package of mortgages (real estate loans). In contrast, an ABS is usually backed by other sorts of financing—student loans, auto loans, or credit card debt.Some financial sources use ABS as a generic term, encompassing any sort of securitized investment based on underlying asset pools—in which case, an MBS is a kind of ABS. Others consider ABSs and MBSs to be separate investment vehicles.


Response: Stagflation is a combination of three negatives: slower economic growth, higher unemployment, and higher prices.This is a combination that isn't supposed to occur, in the logic of economics. Prices shouldn't go up when people have less money to spend.


Response: An example of capitalist production would be if an entrepreneur starts a new widget company and opens a factory. This individual uses available capital that they own (or from outside investors) and buys the land, builds the factory, orders the machinery, and sources the raw materials. Workers are then hired by the entrepreneur to operate the machines and produce widgets. Note that the workers don't own the machines they use or the widgets that they produce. Instead, they receive only wages in exchange for their labor. These wages represent a small fraction of what the entrepreneur earns from the venture.


Response: The first step in starting a startup is having a great idea. From there, market research is the next step to determine how feasible the idea is and what the current marketplace looks like for your idea. After the market research, creating a business plan that outlines your company structure, goals, mission, values, and objectives, is the next step.One of the most important steps is obtaining funding. This can come from savings, friends, family, investors, or a loan. After raising funding, make sure you've done all the correct legal and paperwork. This means registering your business and obtaining any required licenses or permits. After this, establish a business location. From there, create an advertising plan to attract customers, establish a customer base, and adapt as your business grows.


What Is the Difference Between Payroll and Salary?

Response: This is a matter of perspective: For an employee, the money received from a company as compensation often comes in the form of wages or salary (as well as bonuses, stock options, commissions, etc.). For a firm, these payments are an expense that is recorded as payroll.


Response: A 10-Q filing is a form that is filed with the Securities and Exchange Commission (SEC) that reports the quarterly earnings of a company. Most public companies have to file a 10-Q with the SEC to report their financial position for the quarter.


What Was the Most Famous Zero-Day Attack?

Response: While many prominent examples of zero-day examples exist, many cite the Sony Pictures hack of 2014, which utilized a previously-unrecognized vulnerability to install malware unnoticed, which then was used to delete or damage files involved with new films, causing millions of dollars in damages and a scarred reputation for Sony's apparent lack of security. The attack, many believe, was carried out by North Korean agents in response to the release of the film "The Interview," which parodied N. Korea's leader, Kim Jong Un.


Who Are the Parties to a Hire Purchase Agreement?

Response: The parties to a hire purchase agreement are the hire purchaser (the buyer) and the hire vendor (the seller). There can also be a financier involved in the agreement.


What Did the Farmers Home Administration (FmHA) Do?

Response: The Farmers Home Administration (FmHA) was created in 1946 to provide and guarantee loans for rural families and farmers. It managed housing, utility, business, and community development programs that provided credit and technical assistance. These functions are currently performed by USDA Rural Development.


What is a good debt-service coverage ratio?

Response: Generally speaking, the higher, the better. But business lenders will usually want to see a ratio of at least 1.25.A debt-service ratio of 1, for example, means that a company is devoting all of its available income to paying off debt—a precarious position that would likely make further borrowing impossible.Companies can also have a debt-service coverage ratio of less than 1, meaning that it costs them more to service their debt than they are generating in income. However, a business in that situation might not survive for long.


Response: The legal definition of domicile is the address you declare in legal documents to pay taxes, receive social security, vote, bank, and register vehicles and animals.


Response: The Malthusian growth model is a mathematical equation for population growth. It holds that the rate of growth is proportionate to the current population. This is functionally equivalent to exponential growth, where the size of the population doubles at predictable intervals.


Response: Earning the CPA credential is a big time commitment, and the exam is challenging. Still, those with a CPA earn 25% more, on average, than non-CPA accountants. Also, accountants with a CPA certification tend to advance to positions of more responsibility within one to two years and often are promoted to senior-level jobs within a few years after that.


Response: Risk tolerance refers to the amount of risk an individual is willing to take when trading or investing. An individual with a high-risk tolerance is comfortable taking higher risks. They will invest in assets or strategies that come with a high risk of loss but also a higher risk of return. Individuals with a low-risk tolerance are the opposite. They do not want to risk losing money and, therefore, choose investments that are low-risk. In general, younger people have a higher risk tolerance as they have their entire life to earn money or recuperate from losses. Older individuals, such as those in retirement, do not have a high-risk tolerance, as they are focused on preserving their money.


Response: Pre-market trading can start as early as 4 a.m. EST, although most of it takes place from 8 a.m. EST and before regular trading commences at 9:30 a.m. EST.


Response: High-frequency trading is an automated form of trading. It involves the use of algorithms to identify trading opportunities. HFT is commonly used by banks, financial institutions, and institutional investors. It allows these entities to execute large batches of trades within a short period of time. Because everything is automated, trading becomes easy. HFT provides the market with liquidity. But it can result in major market moves and removes the human touch from the equation.


Response: Estate planning costs vary based on the steps you take and how you undergo the process. For instance, using an estate planner or lawyer may require you to pay an hourly fee for their services. Keep in mind that you may be able to secure a flat fee for services rendered. Other fees associated with estate include will preparation, which can be as low as $100 if you hire a professional.


Response: A bond future is a contract between two traders to buy and sell a bond at a specified price and date. Futures are used to speculate on a bond's future price.


How Does Knowing About Behavioral Finance Help?

Response: By understanding how and when people deviate from rational expectations, behavioral finance provides a blueprint to help us make better, more rational decisions when it comes to financial matters.


What Measures Do Analysts and Investors Use to Evaluate Capital Structure?

Response: In addition to the weighted average cost of capital (WACC), several metrics can be used to estimate the suitability of a company's capital structure. Leverage ratios are one group of metrics that are used, such as the debt-to-equity (D/E) ratio or debt ratio.


What Factors Alter a Company's Market Cap?

Response: Two factors can alter a company's market cap: significant changes in the price of a stock or when a company issues or repurchases shares. An investor who exercises a large amount of warrants can also increase the number of shares on the market and negatively affect shareholders in a process known as dilution.


Response: Any person in possession of land owned by someone else may claim adverse possession and acquire valid title to it under, as long as certain requirements are met, like being in possession for a sufficient period of time or paying taxes on the property. These requirements vary by jurisdiction.


What Savings Account Will Earn You the Most Money?

Response: Savings account rates change often, so it is worth taking the time to compare the offerings from different banks and credit unions. As of April 2023, the best savings rates ranged from about 4.5% to 5.0%.


Which App Allowed You to Trade on the OTCBB?

Response: No app allowed you to trade on the OTCBB. The OTCBB was a price-quoting service. Investors traded stocks via brokerage apps that had their prices quoted on the OTCBB.


Response: Also called cash flows from operating activities, or abbreviated as CFO, this figure represents the amount of money flowing through a company that is related to its core business activities.


What Is the Scope of Strategic Financial Management?

Response: Strategic management can encompass all aspects of a firm's long-term objectives. Financial management often plays a key role in this, which involves cost reduction, risk management, and budgeting.


Response: Last mile refers to the last stage in a process, especially of a customer buying goods. When it is used in the context of transportation, supply chain, manufacturing, and retailing, the last mile is used to describe the delivery of products as the last leg of transportation.


What Can Be Done to Improve the Reliability of the Three White Soldiers Chart Pattern?

Response: Improving the reliability of the three white soldiers chart pattern involves a multi-faceted approach that incorporates additional technical indicators, volume analysis, and contextual market conditions.


Response: To become an affiliate marketer, consider what platform you will use to promote products and/or services. Blogs are an effective channel for advertising and promoting as it allows the blogger, serving as an expert, to express an opinion about the offering.After identifying a platform, find a specific category you are comfortable with or are interested in. A focused segment can better help you attract a dedicated consumer base. Research affiliate programs and choose one or more based on your needs, whether it be earning high commissions or generating more traffic. Lastly, develop solid and interesting content around the offerings and work to increase traffic to your site.


Response: To put on a spread position in the markets, you generally buy one asset or security and simultaneously sell another, related asset or security. The resulting spread price is the difference between the price paid the proceeds received from the sale.


What Is the Difference Between Effective and Marginal Tax Rates?

Response: The effective tax rate is a more accurate representation of a person's or corporation's overall tax liability than their marginal tax rate, and it's typically lower. The marginal tax rate refers to the highest tax bracket into which their income falls. In a progressive income tax system like the one in the United States, income is taxed at differing rates that rise as income hits certain thresholds. Two individuals or companies with income in the same upper marginal tax bracket may end up with very different effective tax rates depending on how much of their income was in the top bracket.


Do I Need a Sales and Purchase Agreement?

Response: In the exchange of goods, a SPA protects both the buyer and seller. While a SPA is technically not required, it is often a very good idea to have terms and conditions outlined in a legal document prior to the transaction occurring. You will often have no legal recourse in a failed transaction without a contract in place.


Why Is Fund Flow Important to Know About?

Response: Many analysts and market watchers believe that fund flow provides a window on investor sentiment and behavior. Some investors use fund flow data to signal when to buy or sell. On the other hand, others use fund flow information to substantiate their investment outlooks before they take action.


What Is the Opposite of a Head and Shoulders Pattern?

Response: The inverse head and shoulders pattern is the opposite of the head and shoulders, indicating a reversal from a bearish trend to a bullish trend.


What are the benefits after filing a UCC-Uniform Commercial Code-1 (UCC-1) statement?

Response: Filing a UCC-1 statement allows creditors to collateralize or “secure” their loan by utilizing the personal property assets of their customers. In the event of a customer defaulting on their loan or filing for bankruptcy, a UCC-1 elevates the lender’s status to a secured creditor, ensuring that it will be paid.


Response: The underwriting fees investment banks charge companies to take them public are usually the biggest cost associated with initial public offerings (IPOs). The underwriters lead the IPO process and are involved in every step. They help prepare documents and filing, handle marketing, come up with an issue price, and take on a lot of risk by buying the shares to sell to the public. In return, they are usually paid a percentage of the gross proceeds. That percentage is said to be anywhere from 4% to 7%.


Can Having Delinquencies Prevent You From Getting a Loan?

Response: Yes, the presence of delinquencies on a prospective borrower's credit report can be a deterrent in obtaining a loan, particularly if there are multiple cycles of delinquency.


Response: Self-service BI is an approach to analytics that allows individuals without a technical background to access and explore data. In other words, it gives people throughout the organization, not just those in the IT department, to have control over the data.


What Types of Companies Are Considered to Be in the Private Sector?

Response: There are many types of companies or entities that constitute the private sector. They include sole proprietorships, partnerships, and privately owned corporations.


Response: Traders may employ a particular type of interpolation (also called smoothing) to represent the high-low range of price movement between a series of closing price prints. This is done by creating a linear regression line through the highs and lows of a two-day chart as shown above. Then, the slope of the regression line corresponds to (roughly) the shape of the price movement over those consecutive days. This slope can then be used as an approximation for the moving average (MA) of the high-low range. If prices are trading above the regression line (of the moving average), then traders can assume the low-range will support higher prices. On the other hand, if prices fall below the moving average, the low-range is deemed to support lower prices.


Response: You need life insurance if you need to provide security for a spouse, children, or other family members in the event of your death. Life insurance death benefits, depending on the policy amount, can help beneficiaries pay off a mortgage, cover college tuition, or help fund retirement. Permanent life insurance also features a cash value component that builds over time.


Response: Policyholders of permanent life insurance have the ability to borrow against the accumulated cash value, which comes from regular premium payments plus any interest and dividends credited to the policy.


Response: Expenses can be categorized in a variety of ways. Expenses can be defined as fixed expenses, such as rent or mortgage; those that do not change with the change in production. Expenses can also be defined as variable expenses; those that change with the change in production. These include utilities and the cost of goods sold. Expenses can also be categorized as operating and non-operating expenses. The former are the expenses directly related to operating the company, and the latter is indirectly related.


Response: Examples of deliverables include an initial project strategy report, the budget report, a progress report, a beta product, a test result report, and any other quantifiable aspects of a project that mark a completion.


Is a Higher Tier 1 Capital Ratio Better?

Response: The minimum tier 1 capital ratio required by financial regulators is 6%. Anything under this threshold means that a bank isn't adequately capitalized. This means that a ratio over 6% is desired so a higher tier 1 capital ratio means it is better able to withstand any financial troubles.


Response: "F shares" refer to shares of a foreign company that are traded on U.S. stock exchanges but not through ADRs. Instead, these shares are directly listed and denoted with an "F" at the end of their ticker symbol to indicate their foreign status.


Response: A free trade area is an agreement formed by a group of like-minded countries that agree to reduce trade barriers, such as tariffs and quotas, among others. It encourages international trade among the member countries.


What Is the Difference Between COGS and SG&A?

Response: SG&A includes almost every business expense that isn't included in the cost of goods sold (COGS). COGS includes the expenses necessary to manufacture a product, including the labor, materials, and overhead expenses. SG&A costs are the residual expenses necessary to run the organization and incur costs less specifically tied to the cost of making the product.


Response: Nostro is a word derived from the Latin term for "ours." These accounts are frequently used to facilitate foreign exchange and trade transactions in an efficient way.


Response: Limited liability companies (LLCs, U.S.) and limited companies (Ltd., U.K. and others) are two different types of business structures. LLCs are unincorporated business entities, while limited companies are incorporated in their jurisdictions. Key differences in their jurisdictions stipulate the different rules regarding ownership, liability, taxes, and dividends.


Did Keynes Predict the Rise of Nazi Germany?

Response: During the 1919 Versailles Peace Conference, Keynes was an outspoken critic of the crippling economic measures certain senior statesmen wanted to impose on Germany. When his warnings that these harsh sanctions would likely result in economic and political catastrophe for Europe went unheeded, he left the conference early in protest.As soon as he returned to the U.K., he resigned from the British Treasury and summarized his arguments about the dangers of a peace treaty designed to permanently crush Germany in The Economic Consequences of the Peace.Within a year of its publication in 1920, Keynes’ book had become a bestseller that strongly influenced public opinion that the Treaty of Versailles was unfair. As the political and economic turmoil of the 1930s fueled the rise of fascism that exploded into World War II, Keynes’ early warnings began to sound prophetic as well.


Response: NYSE Arca lists more than 8,000 stocks and exchange-traded products. This means that virtually every individual stock and ETF traded on a U.S. stock exchange will also be available to trade on NYSE Arca.


What are some prominent companies that have gone public through a SPAC?

Response: Some of the best-known companies to have become publicly listed by merging with a SPAC are digital sports entertainment and gaming company DraftKings (DKNG); aerospace and space travel company Virgin Galactic (SPCE); energy storage innovator QuantumScape (QS); and real estate platform Opendoor Technologies (OPEN).


What's the Difference Between Forms 1095-B and 1095-C?

Response: Form 1095-B is sent to individuals from health insurance providers indicating whether the taxpayer had minimum essential coverage. Form 1095-C might be sent, with or instead of 1095-B, if you had health insurance coverage from an employer with 50 or more employees.


Response: Disposable income is a net amount. It is the amount of money an individual or family has left to spend or save after all taxes are deducted from gross income.


Response: A form of incumbency is just another name for “incumbency certificate.” It provides necessary information as to a company’s directors and officers, and, sometimes, its key shareholders.


Response: According to Indeed, the average salary for a wealth manager in the United States in 2022 was $79,395.


Response: All risk perils is another name for all risk insurance as it relates to individual risks. Named perils is an insurance product that names what is insured in case of an accident. All risks, assuming there are no perils mentioned, could be considered all risk perils since all perils are assumed as risk (under the policy). However, these are rare as they put undue risk acceptance on the insurer, and it is much more common to see many perils listed, even on an all risks policy.


Response: Yes, a company can survive a Chapter 11 bankruptcy and many companies have. Not only have they survived but many have gone on to become stronger companies. The purpose of a Chapter 11 bankruptcy is for a company to reorganize itself so it is on a better financial footing. The goal is not to close down and liquidate assets.


Response: There are several ways you can take advantage of Hong Kong's stock market and economy as an investor. You can purchase shares exchange-traded funds (ETFs) and/or mutual funds that hold Hong Kong securities in their portfolios, American depositary receipts (ADRs) of Hong Kong companies, and index funds. If you want to invest directly in shares that trade in Hong Kong, talk to a brokerage firm to see if you can invest internationally.


How Many People in America Are Considered "High Net-Worth"?

Response: The United States had the most HNWIs in the world in 2021, with more than 7.4 million such people.


What Is the Minimum Capital Adequacy Under Basel II?

Response: Under Basell II, banks are required to maintain a capital reserve (Tier 1 + 2 + 3) equal to at least 8% of their risk-weighted assets.


Response: Many thrift banks are also mutual savings banks, meaning that account holders are also shareholders of the bank. In this sense, mutual banks are similar to credit unions, but the main difference between mutual banks and credit unions is that the former are for-profit, while the latter are nonprofit.


How Do Horizontal Mergers Affect Market Competition?

Response: Horizontal mergers can have a significant impact on market competition. By reducing the number of competitors in the industry, the merged entity may gain increased market power, potentially leading to higher prices, reduced product differentiation, and limited choices for consumers. Regulatory authorities often assess the potential effects on competition before approving horizontal mergers to ensure they do not create monopolistic or anti-competitive market conditions.


What Is Rational Choice Theory in International Relations?

Response: States, intergovernmental organizations, nongovernmental organizations, and multinational corporations are all made up of human beings. In order to understand the actions of these entities, we must understand the behavior of the humans running them. Rational choice theory helps to explain how leaders and other important decision-makers of organizations and institutions make decisions. Rational choice theory can also attempt to predict the future actions of these actors.


What Is the Difference Between a Stock Dividend and a Cash Dividend?

Response: A stock dividend is paid out in the form of company shares. The stock dividend is not taxable until the shares are sold. A cash dividend is paid out as cash and is taxable for that year. The company will send you a 1099-DIV form at the end of the year.


What Is the Difference Between On-Chain and Off-Chain Governance?

Response: On-chain governance gives token holders the (decentralized) right to vote on and implement changes in a blockchain. Off-chain governance refers to changes proposed and implemented by a select group of individuals (centralized).


What Does It Cost to Open a Mom-and-Pop Store?

Response: There is no one set cost to open a mom-and-pop store. However, the online management platform BlueCart says that it takes somewhere between $25,000 and $50,000 to open a small mom-and-pop grocery store.


Response: Companies in India that have many FIIs are CarTrade Tech, HDFC, PB Fintech, Axis Bank, Kiri Industries, ITC, ICICI Bank, and Standard Industries.


Response: Land trusts work like other trusts, allowing grantors to set unique terms and conditions that fit their needs. Land trusts have three key parts—the grantor, trustee, and beneficiary. Grantors create the trust and transfer the property into it, trustees manage the trust, and the beneficiary benefits from the trust.


What Is Crowdfunding and How Does It Work?

Response: Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Depending on the type of crowdfunding, investors either donate money altruistically or get rewards such as equity in the company that raised the money.


What Does It Mean to 'Broaden the Tax Base?'

Response: When a government seeks to "broaden the tax base," it usually means increasing tax revenues by expanding the type or level of income or assets that are subject to taxation, rather than raising the tax rates overall. For example, the federal government might repeal the favorable treatment of long-term capital gains, or eliminate the deduction for interest on student loans. The tax base is broadened, but the tax rates remain the same.


Response: REITs can be better than stocks in some ways, and less attractive in others. Investors typically don't choose one or the other. Instead, they often opt for a combination of both and consider their REIT exposure their exposure to the real estate market without thinking about the general equities market. Although they are traded on the same exchanges, REITs serve different purposes, and a REIT is closer to an exchange traded fund (ETF) than an individual company's stock.


What is the Overall Interpretation of a Double Bottom?

Response: A double bottom is suggestive of a change in direction higher and possibly the start of a new uptrend. To put it in buyers/sellers terms, the sellers have created a downtrend that came to a low point (support), which led to a rebound or short-covering. The rebound that follows is considered corrective within the overall downtrend, meaning the sellers are still in place, and they eventually make another try for the downside. However, the previous low/support level manages to hold again, meaning the fundamentals may have changed and the selling pressure may have been exhausted, leaving the sellers suddenly on the wrong side of the downward move.


Is It Better to Invest in Bonds or Stocks?

Response: It can depend a great deal on your goals. Stocks might be more appropriate if you're planning to leave your money invested over a long period of time. Bonds tend to be safer in the short term but they'll most likely be worth less than stocks in the long term.


What Is Duration and How Does That Affect Bond Valuation?

Response: Bond valuation looks at discounted cash flows at their net present value if held to maturity. Duration instead measures a bond's price sensitivity to a 1% change in interest rates. Longer-term bonds have a higher duration, all else equal. Longer-term bonds will also have a larger number of future cash flows to discount, and so a change to the discount rate will have a greater impact on the NPV of longer-maturity bonds as well.


Response: Most students need to have an above-average to high grade point to earn the cum laude honor.


Response: KPIs vary from business to business, and some KPIs are more suitable for certain companies compared to others. In general, five of the most commonly used KPIs are:Revenue growthRevenue per clientProfit marginClient retention rateCustomer satisfaction


Response: The highest theta is for at-the-money options, and the lowest is for the furthest out-of-the-money and in-the-money options. For an option that is at the money or nearly so, the absolute value of theta rises as the expiration date is reached.


Response: COGS is an acronym for cost of goods sold. It plays an integral role in business accounting by providing a point-in-time estimate of the cost to produce products sold by a company. If the company utilizes a perpetual inventory system, COGS is available on a continuous basis. With a periodic inventory system, COGS is calculated at the end of an inventory period.


Response: In the Skycoin network using Obelisk consensus, a consensus node collects blocks from block-generating nodes and determines which block was made by the largest number of block-generators. That block is added to the blockchain.


Response: Irving Janis identified eight signs that are closely associated with groupthink: illusions of unanimity, unquestioned beliefs, rationalization, stereotyping, "mindguards," illusions of invulnerability, and direct pressure on opposing views. Each of these signs leads members of the group to ignore dissenting viewpoints and to hide their own doubts. This enforces the illusion that the group's decisions are superior to individual judgment, and that any opposing views are contrary to the group's interests.


Can You Deduct Both Property Taxes and Mortgage Interest?

Response: Homeowners that itemize taxes and meet the qualification for deducting mortgage interest can deduct property taxes and mortgage interest from their taxes.


Response: The Series 66 is difficult since it covers a wide breadth of detailed material. The official pass rates for the Series 66 exam are not officially published; however, test prep programs estimate the pass rate to be around 65% to 70% of test takers. If you fail the exam, you must wait at least 30 days before attempting it again.


What Was the Catalog of Federal Domestic Assistance?

Response: The Catalog of Federal Domestic Assistance (CFDA) was a government-wide catalog of federal programs, projects, services, and activities that provided assistance or benefits to a variety of recipients.


Can You Deduct a Long-Term Capital Loss?

Response: The Internal Revenue Service lets you deduct and carry over to the next tax year any capital losses. However, you can only claim the lessor of $3,000 ($1,500 if you're married filing separately) or your total net loss.


What Happens at a Probate Court Hearing?

Response: At a probate court hearing, the judge will list the responsibilities of the executor of the will, including contacting any beneficiaries and creditors, appraising the deceased's assets, and paying any outstanding creditors and taxes. Usually, at the second court hearing, the judge will ensure all these items have been done and close out the estate so that the transfers of money and other assets in the estate may begin.


Response: Social justice is the belief that the social benefits and privileges of a society ought to be divided fairly.


What Are the Common Attributes of Term Loans?

Response: Term loans carry a fixed or variable interest rate, a monthly or quarterly repayment schedule, and a set maturity date. If the loan is used to finance an asset purchase, the useful life of that asset can impact the repayment schedule. The loan requires collateral and a rigorous approval process to reduce the risk of default or failure to make payments. However, term loans generally carry no penalties if they are paid off ahead of schedule.


What Are Restricted Securities Pursuant to Rule 144?

Response: SEC Rule 144 covers restricted securities. Restricted securities are typically sold in a private placement and cannot be freely traded on stock exchanges.These shares are subject to resale and transfer restrictions which may include filing a registration statement with the SEC.


What's the Difference Between Money and Currency?

Response: Money is an intangible system of value that provides the means for the ongoing exchange of goods and services in a society. Money has taken many forms since it overtook the system of bartering. Currency is a tangible form of it. So, instead of, say, bartering agricultural produce for the clothing you may need, you can use currency (paper notes and coins) to obtain it.


Are Home Prices Lower in a Buyer's Market or a Seller's Market?

Response: In a buyer's market, prices are generally lower and there is less competition. A buyer's market is usually created when there is more supply and lower demand, which means there are more houses than buyers for those houses. Because of this, home sellers must compete to attract homebuyers, which means prices stay lower.


What Is Deferred Income Tax in Simple Terms?

Response: Deferred income tax is tax that must be paid in the future to account for differences in how companies recognize income and how tax authorities recognize income.


Response: Some of the disadvantages of a REIT are high expense ratios, lack of investor input, and lack of owner-initiated property enhancement. Investors trade the higher liquidity of a REIT with owning a property outright. But that investor can't make enhancements, such as adding a new roof or electrical to enhance the property's value. REITs themselves can sometimes suffer from a lack of market liquidity, but those issues tend to be reserved for smaller REITs that are not heavily traded.


Can Someone Do a Title Search on Their Own?

Response: Title searches are normally done by title companies. But you can certainly do a title search on your own. Before you start, make sure you have the correct information, such as the street and legal address of the property. Once you have this information, check through public records online or in person. You can go to the office where the title is recorded (usually the country clerk's office) and/or the tax assessor's office to see if there are any outstanding liens on the property. Keep in mind that it can be a long and tedious process. It can also be costly, too.


What Is the Early Withdrawal Penalty for TFSAs?

Response: There is no penalty for any withdrawal from a TFSA. That's one of its advantages. The Canadian government intended for this type of savings account to be used for any purpose whatsoever, and not simply for retirement. So, you can take withdrawals at any time during your life without being penalized for doing so.


What Are the Characteristics of an Underground Economy?

Response: Underground economies do not just include illegal activities, such as the purchase and sale of banned drugs or the illegal sale of weapons. It also includes any unreported income, such as paying restaurant employees under the table or jobs such as babysitting that go unreported. Similarly, any bartering that does not involve the exchange of cash and is not reported is considered part of the underground economy.


What Is the Effect of a Currency Revaluation?

Response: A currency revaluation increases the value of a currency in relation to other currencies. This makes the purchase of foreign goods in foreign currencies less expensive to domestic importers. Conversely, domestic exporters will see a decline in exporting business as the exporting goods are now more expensive to foreign importers.


Response: Yes, mergers & acquisitions are a form of inorganic growth as the company takes external measures to grow the company by combining with another firm.


Response: Descriptive statistics is a means of describing features of a data set by generating summaries about data samples. It's often depicted as a summary of data shown that explains the contents of data. For example, a population census may include descriptive statistics regarding the ratio of men and women in a specific city.


Response: The quantity theory of money states that money supply and price level are directly proportional to each other. When there is a change in the price level, there is a proportional change in the money supply, and vice versa.


Response: All brokerages and financial institutions have the best execution requirements for customers and are required to provide them with the best stock price currently available. If a private investor wants to invest in Apple stock, they would see the level I bid and ask prices listed on their broker's online trading portal. When the customer initiates an order to purchase the stock, the broker uses level III quotes to give that investor the best price. The deeper information contained in level III quotes is used to benefit the investor, even though they only see level I quotes.


How Do You Calculate a Country's Terms of Trade?

Response: Terms of trade for a country can be calculated by dividing its price index of exports by its price index of imports. This ratio is then multiplied by 100:TOT = Pexports/Pimports x 100


Response: To create a holding company, you simply need to file the articles of incorporation in the state or jurisdiction where you want to register the company. You will also need to identify the business agents managing the holding and operating companies. This can be complicated, so for companies with larger holdings it is worth engaging a lawyer.


How do you know when new coins are launched?

Response: Many exchanges, websites, and aggregators list new coins. Some examples are Coinbase, Gemini, Kraken, CoinGecko, and CoinMarketCap. You can also find new coins announced on social media platforms such as Twitter.


Response: While there are some specialized bond brokers, today most online and discount brokers offer access to bond markets, and you can buy them more or less like you would with stocks. Treasury bonds and TIPS are typically sold directly via the federal government, and can be purchased via its TreasuryDirect website. You can also buy bonds indirectly via fixed-income ETFs or mutual funds that invest in a portfolio of bonds.


What Is the Purpose of a Financial Plan?

Response: A financial plan should help you make the best use of your money and achieve long-term financial goals, such as sending your children to college, buying a bigger home, leaving a legacy, or enjoying a comfortable retirement.


Response: While payroll is essentially an accounting practice, it deals with paying the people inside of a company, which puts it under the domain of human resources (HR). Thus, most companies have HR manage payroll and related issues. However, some companies may house payroll inside of the finance or accounting department, and some larger companies may even carve out a distinct payroll office.


Response: No. A home warranty isn't a warranty on your house, but covers the appliances in your home, such as a refrigerator.


Response: Prepayment risk applies to MBS and ABS and is the reduction of the fund's WART due to homeowners or other debtors refinancing their loans or making early unscheduled payments. These repayments effectively shorten the average maturity of a portfolio and change its risk profile. This is especially a risk in an environment of declining interest rates.As mortgages, for example, are refinanced, the original loans are completely paid off and replaced with a new, lower-interest rate loan. Funds holding MBS with the original mortgage will no longer receive cash flows from that homeowner.


What Is the Best Time Frame for Mean Reversion?

Response: Time frames for mean reversion are dependent on the trader or investor's objectives, risk tolerance, and the asset being traded.


What Benefit Does Tenancy in Common Provide?

Response: Tenancy in common (TIC) is a legal arrangement in which two or more parties jointly own a piece of real property, such as a building or parcel of land. The key feature of a TIC is that either party can sell their share of the property while also reserving the right to pass on their share of the property to their heirs.


Why Would an Economist Still Believe in the Phillips Curve?

Response: While the Phillips curve isn't without its limitations, some economists still find it useful to consider. Policymakers may use it as a general framework to think about the relationship between inflation and unemployment, both key measures of economic performance. Others caution that it does not capture the complexity of today's markets.


How do You Invest in Peer-to-Peer Lending?

Response: The simplest way to invest in peer-to-peer lending is to make an account on a P2P lending site and begin lending money to borrowers. These sites typically let the lender choose the profile of their borrowers, so they can choose between high risk/high returns or more modest returns. Alternatively, many P2P lending sites are public companies, so one can also invest in them by buying their stock.


Response: If your employer offers direct deposit, you should ask them how to set it up. There are generally a number of steps involved:Get a direct deposit form from your employer.Fill in account information.Confirm the deposit amount.Attach a voided check or deposit slip if required.Submit the form.


Response: Petroleum is not a renewable energy source. It is a fossil fuel with a finite amount of petroleum available.


How Does Economic Growth Help Fight Brain Drain?

Response: Brain drain occurs when there is a lack of opportunity in a certain area. For instance, professionals living in a developing nation may leave in search of better opportunities in parts of the developed world. Making economic investments to boost growth often provides incentives for people to stay, as it means access to better (and more) resources, personal economic prosperity, and the potential for a higher standard of living.


How Many Times Can a Company Restructure?

Response: There is no legal limit to how many times a company can restructure. A company can decide to change its operations as many times as it deems necessary in order to become more efficient and cut costs. That being said, restructuring is a complicated process that involves a lot of time and strategy, and so is not a process to be done lightly or often.


Response: Market cap does not affect stock price; rather, market cap is calculated by analyzing the stock price and number of shares issued. Although a blue-chip stock may perform better because of organizational efficiency and greater market presence, having a higher market cap does not directly impact stock prices.


Response: A widely used measure of market risk is the value-at-risk (VaR) method. VaR modeling is a statistical risk management method that quantifies a stock’s or portfolio’s potential loss as well as the probability of that potential loss occurring. While well-known, the VaR method requires certain assumptions that limit its precision.Beta is another relevant risk metric that measures the relative sensitivity of an asset to broader market movements. The equity risk premium (ERP) is the implied expected return that investors demand while holding market risk in the stock market, above and beyond that of the risk-free rate of return.


Is the Payback Period the Same Thing As the Break-Even Point?

Response: While the two terms are related, they are not the same. The breakeven point is the price or value that an investment or project must rise to cover the initial costs or outlay. The payback period refers to how long it takes to reach that breakeven.


What Is the Limit of a Transaction With a Single Affiliate?

Response: No transaction with a single affiliate can exceed 10% of an institution's capital.


Response: The bid-ask spread is the difference between the bid price and the ask price. The bid price is lower most of the time.


What Is the Cash Conversion Cycle Formula?

Response: Cash Conversion Cycle = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding


Response: Keogh plans are for the self-employed, so you can enroll in one if you're a sole proprietor or work for yourself.


Response: Most markets are subject to rules and regulations set by a regional or governing body that determines the market’s nature. They can be international, national, or local authorities.


Response: An example of hypothecation would be an investor who takes out a mortgage loan to purchase an investment property. The property serves as collateral for the loan. Meanwhile, the investor collects the rental income derived from it. But if the investor defaults, the lender can initiate a foreclosure proceeding to take ownership of the property.


What Is the Difference Between Backorder and Out of Stock?

Response: A backorder and out-of-stock are similar. Whereas out-of-stock is an indicator that good is not available, a backorder often signifies that out-of-stock order may still be able to be ordered but is not available for immediate shipment. A company may keep a product as out-of-stock if it does not wish to further sell more units of that product. However, a backordered product is more likely to return due to a temporary delay in product availability.


What Is the Difference Between Gross Profit and Net Profit?

Response: Gross profit is the income after production costs have been subtracted from revenue and helps investors determine how much profit a company earns from the production and sale of its products. By comparison, net profit, or net income, is the profit left after all expenses and costs have been removed from revenue. It helps demonstrate a company's overall profitability, which reflects the effectiveness of a company's management.


How Do Rating Agencies Assess Non-Financial Sectors, Such as Governments?

Response: Rating agencies assess non-financial sectors, including governments, by analyzing factors specific to those sectors. For governments, they consider fiscal discipline, economic growth prospects, debt levels, political stability, and institutional strength. Be mindful that each rating agency has its own methodology and criteria to evaluate the creditworthiness of governments and other non-financial sectors.


Is There a Good Trading Platform for Beginning Traders?

Response: E*Trade and TD Ameritrade are choices that beginners may want to look into. TD Ameritrade has excellent educational resources that can help novice traders understand the markets and become more comfortable with trading before actually placing trades. E*Trade's user-friendly interface can eliminate the frustrations a beginner might have trying to navigate a trading platform.


What Is the Definition or Meaning of the Latin Phrase “Quid Pro Quo”?

Response: Quid pro quo means "something for something" in Latin. While today it denotes something done with the expectation of some favor in return ("I scratch your back, you scratch mine"), the phrase was first used by apothecaries in the 1500s when they did not have a particular remedy in stock and would thus prescribe a substitute.


Response: As it applies to the law, compensatory activities are usually awarded in the form of monetary payments.


Response: To become a member of the NFA one needs to apply directly with the NFA. This is done through an electronic filing process.


Response: SQL, or Structured Query Language, is a computer language that is used to interact with a database in terms that it can understand and respond to. It contains a number of commands such as "select," "insert," and "update." It is the standard language for relational database management systems.A database is not the same as a data warehouse, although both are stores of information. A database is an organized collection of information. A data warehouse is an information archive that is continuously built from multiple sources.


What Challenges Face Corporations When Targeting All Regions in EMEA?

Response: Some business activities, like Marketing or Advertising, can be challenging when companies target and divided business to encompass the entire EMEA region as opposed to conducting business in North America. Creating a marketing plan for EMEA means considering local laws, cultures, and holidays among different regions. Corporations also have to account for economic and political factors, local government regulation, and product fit.


Response: Yes, the MD&A section is a standard piece to a set of financial statements. The notes section of the financial statements must include certain pieces of information, with the MD&A section being one of them.


Do Banks Have to Keep a Record of Deposit Slips?

Response: Banks are required by federal law to keep records of deposits exceeding $100 for at least five years. They have the option of keeping them longer. But these records can be and typically are digital, not paper copies.


What Are the Disadvantages of Oral Contracts?

Response: The primary disadvantages of oral contracts are that they are difficult to enforce, may lead to confusion and error, or the outcome may be inconsistent with what was agreed upon. Because oral contracts are made through spoken word, they can be difficult to enforce in a court of law if one party backs out or does not complete their end of the deal in an acceptable fashion. The disadvantage of all oral contracts is the increased level of risk in the contract.


Can I Claim Qualified Adoption Expenses for An Adoptee Older Than 18 Years Old?

Response: The IRS explicitly states that an eligible child relating to qualified adoption expenses must be under the age of 18. The only exception to this age restriction is if the adoptee is physically or mentally incapable of self-care.


Response: Within the FIRE movement are several variations. Fat FIRE is a more easygoing attempt to save more while giving up less. Lean FIRE requires devotion to minimalist living. Barista FIRE is for those who want to quit the nine-to-five rat race and are willing to cut back their spending while working only part-time to do so.


What Is the Difference Between a Wirehouse and a Brokerage?

Response: All wirehouses are brokerages, but not all brokerages are wirehouses. The wirehouse label is usually attached to the largest full-service brokerage houses whose employees supply their clients with research, in-house analysis, and trading services. Some brokers work independently or are associated with independent dealer-broker firms rather than wirehouses.


What Pay or Benefits Does the FLSA Not Require?

Response: The FLSA does not require the following:Compensation for traveling to and from the workplaceVacation, holiday, severance, or sick payMeal or rest periods, holidays off, or vacationsPremium pay for weekend or holiday workPay raises or fringe benefitsThe immediate payment of final wages to terminated employees


Response: A bottleneck occurs in manufacturing when there is a stage (or stages) in the process that slows down the overall production of a good. For instance, initial steps may rapidly assemble key parts, but a crucial next step that welds the parts together may not be able to keep pace with the earlier stages. As a result, a backlog occurs and efficiency is reduced. The bottleneck should be solved by expanding that process, investing in better technology to speed up that process, or hiring more workers to help with that process.


Do You Have to Pay Back an Illegal Loan?

Response: If a loan was made illegally then you do not actually have to pay back the loan. If a lender does not have a consumer credit license, it is illegal for them to make a loan. It is not illegal to borrow the money, however. Unlicensed lenders are known as loan sharks. Loan sharks have no legal right to claim the money that you borrowed from them, therefore, you do not have to pay the money back.


Is It Better to Invest in Bitcoin or Altcoins?

Response: Which cryptocurrency is better is a subjective argument based on an investor's financial circumstances, investing goals, risk tolerance, and beliefs. You should talk to a professional financial advisor about investing in cryptocurrency before buying any.


Response: The living wage in the United States was $25.02 per hour (or $104,077.70) per year before taxes for a family of four with two working adults and two children in 2022. But this varies state by state. The highest livable wage in 2024 was for Massachusetts for a total of $128,086 while Mississippi had the lowest living wage for a total of $80,766. New York's livable wage was $113,131 while California, Texas, and Wisconsin had living wages of $117,478, $89,045, and $96,283 respectively.


Response: A free look period for a life insurance policy begins when you receive the policy, or the day the policy is delivered. Check with the insurance company for what date they are considering as the delivery date.


Response: Multiple stores offer cash-back rewards. How much depends on their rewards program. Kohl’s, Dick’s Sporting Goods, The Home Depot, and CVS, among others, offer their customers cash-back rewards programs.


Can I Cash Out My Defined Contribution Pension Plan?

Response: It’s usually necessary to keep money in the plan until you reach age 59½. You may be hit with a 10% penalty on top of any income tax you may owe if you make a withdrawal before then.


How Would an Economic Slump Affect my Fixed-Rate Mortgage?

Response: Interest rates tend to drop when times are tough and the economy becomes sluggish. If you already have a fixed-rate mortgage, not much will change because your interest rate remains the same throughout the lifetime of your loan. But you stand to benefit from a low rate if you're in the market for a new home (if you can afford it as the economy slows down) or if you are able to refinance with your lender.


Response: Chapter 11 is a type of bankruptcy most often filed for by businesses, in particular corporations and partnerships. Sometimes referred to as a "reorganization bankruptcy," it allows the business to continue operating under court supervision while it attempts to pay its creditors. Individuals can also file for Chapter 11, but they more typically use Chapter 7 or Chapter 13.


Response: A home appraisal is almost always a requirement when purchasing a home with a mortgage. Lenders use the appraisal to determine whether the home is worth the amount of money the buyer is asking to borrow. A buyer may not require an valuation if they're paying cash for a home versus taking out a mortgage loan.


What Is the Purpose of Asset Impairment?

Response: The overall goal of asset impairment is to periodically evaluate a company's assets to make sure the total value of the assets is not being overstated. An impaired asset is one that has a market value less than what is listed on the company's balance sheet. There are various factors that can affect an asset's value so periodically checking its value is prudent business management.


Response: An important goal of marketing is propelling a company’s growth. This can be seen through attracting and retaining new customers. Companies may apply many different marketing strategies to achieve these goals. For instance, matching products with customers' needs could involve personalization, prediction, and essentially knowing the right problem to solve. Another strategy is creating value through the customer experience. This is demonstrated through efforts to elevate customer satisfaction and remove any difficulties with the product or service.


Response: Examples of section 1250 property include commercial buildings or residential rental property. Commercial buildings would be treated as MACRS 39-year real property, while the residential rental property would be treated as 27.5-year property.


How Long Do Corporate Bankruptcies Usually Take?

Response: Every bankruptcy situation is unique and, therefore, will vary in the length of time it takes from filing to closing. In general, if all parties are prepared, a bankruptcy proceeding lasts between four to six months.


What Information Does a Demand Schedule Show?

Response: A demand schedule is meant to inform a manufacturer, distributor, or retailer of consumer demand for a product at different price points. This information may or may not incorporate a time series where the demand schedule can be tracked over time. Alternatively, a demand schedule from different markets may be compiled and shown against each other for comparative analysis.


What Is the Relationship Between Mean, Median, and Mode in a Symmetrical Distribution?

Response: In a symmetrical distribution, all three of these descriptive statistics tend to be the same value, for instance in a normal distribution (bell curve). This also holds in other symmetric distributions such as the uniform distribution (where all values are identical; depicted simply as a horizontal line) or the binomial distribution, which accounts for discrete data that can only take on one of two values (e.g., zero or one, yes or no, true or false, etc.).On rare occasions, a symmetrical distribution may have two modes (neither of which are the mean or median), for instance in one that would appear like two identical hilltops equidistant from one another.


Response: It's widely debated if the American Dream is still achievable, and what that achievement even entails. Indeed, today, many people wonder if they can keep up with rising housing costs and interest payments on loans needed to purchase things like homes and cars. Moreover, American's need to save for their own retirement and pay large out-of-pocket costs for healthcare and higher education, which can leave families saddled with high-interest debt that is hard to crawl back from.


Why Is Transparency So Important in Viral Marketing?

Response: Being transparent means being honest and open about operations and motives. Transparency in viral marketing is important as consumers are more critical of traditional marketing campaigns and are holding companies accountable for their actions more often than before. Approximately 94% of consumers are likely to be loyal to companies that are transparent in marketing.


Response: Market segmentation realizes that not all customers have the same interests, purchasing power, or consumer needs. Instead of catering to all prospective clients broadly, market segmentation is important because it strives to make a company's marketing endeavors more strategic and refined. By developing specific plans for specific products with target audiences in mind, a company can increase its chances of generating sales and being more efficient with resources.


What Is the Difference Between Earned and Unearned Income?

Response: Earned income comes from working, while unearned income does not. The IRS may treat each type of income differently for tax purposes. Tax rates vary among sources of unearned income; most unearned income sources are not subject to payroll taxes, and none of them are subject to employment taxes such as Social Security and Medicare. Unearned income cannot be used to contribute to a qualified retirement account such as an IRA.


Response: Price action is often depicted graphically in the form of a bar chart or line chart. There are two general factors to consider when analyzing price action. The first is to identify the direction of the price, and the second is to identify the direction of the volume.Should a security's price be moving upward while the volume increases, this means there is strong conviction in the market as many investors are buying at the increasing price. Alternatively, should there have been low volume, the price action may not be as convincing as not many investors are choosing to invest at the current pricing levels.


Response: Tax loss harvesting is a strategy in which an investor sells an investment at a loss, replaces it in their portfolio with a similar investment, and uses the capital loss to offset their gains or other income. Tax loss harvesting is legal, but investors have to be careful not to run afoul of wash sale rules, which prohibit buying a "substantially similar" security within 30 days of selling.


Response: No. In schools where Latin honors are used, the highest distinction is usually summa cum laude, followed by magna cum laude, and then cum laude.


Is Using the IRR Rule the Same As Using the Discounted Cash Flow Method?

Response: Yes, using IRR to obtain net present value is known as the discounted cash flow method of financial analysis. The internal rate of return is the interest rate (also known as the discount rate) that will bring a series of cash flows (positive and negative) to a net present value of zero or to the current value of cash invested. Investors and firms use IRR to evaluate whether an investment in a project can be justified.


Response: Most lenders use 80% as the threshold for a good loan-to-value (LTV) ratio. Anything below this value is even better. Note that borrowing costs can become higher, or borrowers may be denied loans, as the LTV rises above 80%.


Response: Financial advisors are tasked with managing every aspect of your financial life, from retirement planning to estate planning to savings and investing. They are responsible for more than just suggesting investment choices or selling financial products. They assess your financial status and understand your financial goals and create a tailored financial plan to achieve those goals. They can help reduce the taxes you pay and maximize the returns on any financial assets you may own.


Response: Since Bollinger Bands® are set two use +/- two standard deviations around an SMA, we should expect that approximately 95% of the time, the observed price action will fall within these bands.


Response: Analysts generally publish their price targets in research reports on specific companies, along with their buy, sell, and hold recommendations for the company's stock. Stock price targets are often quoted in the financial news media.


What Is the Purpose of the Home Mortgage Disclosure Act?

Response: The Home Mortgage Disclosure Act is a law passed by Congress in 1975. The purpose of the Act is to promote transparency within the mortgage lending market. It also aims to protect consumers from predatory and discriminatory lending practices. This is done through the collection of data from lenders about different types of mortgage loan applications. Lenders must submit their data each year about information on residential mortgage applications, originations, and refinances. This includes information about applicants, collateral details, the types of applications, and the status of each.


Response: The notional value is the amount of an underlying asset that investment managers might seek to hedge against. In contrast, the market value will fluctuate over time based on market movements—which the investor might presumably seek to hedge—while the notional amount remains the same.


Response: Inferior goods are goods for which demand declines as consumers' real incomes rise, or rises as incomes fall. Consumers with more money may opt to buy more expensive substitutes instead of what they could afford only when incomes were lower.


What Is the Difference Between Historical Cost and Fair Market Value??

Response: Historical cost is the cash or cash equivalent value of an asset at the time of acquisition. Fair market value is the current value of that asset. Imagine if someone were to have purchased an acre of land 10 years ago for $10,000 and that land is now worth $20,000. The historical cost is $10,000, and the fair market value is $20,000.


Response: A duopoly exists when two companies dominate a market for a given product or service. A duopoly can have the same impact on the market as a monopoly if the two players collude on prices or output.


Response: Most often, stocks are bought and sold on stock exchanges, such as the Nasdaq or the New York Stock Exchange (NYSE). After a company goes public through an initial public offering (IPO), its stock becomes available for investors to buy and sell on an exchange. Typically, investors will use a brokerage account to purchase stock on the exchange, which will list the purchasing price (the bid) or the selling price (the offer). The price of the stock is influenced by supply and demand factors in the market, among other variables.


What Is the Difference Between DMA and OTC?

Response: Direct market access (DMA) differs from over-the-counter (OTC) in that DMA places trades directly with an exchange while OTC happens outside of exchanges and directly between parties. DMA offers more transparency, liquidity, regulation, and better pricing.


Response: Most businesses will need an employer identification number. Specifically one will need an EIN if it has employees, operates as a corporation or partnership, files certain tax returns (Employment, Excise, or Alcohol, Tobacco, and Firearms), withholds taxes on income, other than wages, paid to non-resident aliens, or has a Keogh plan. Additionally, individuals involved with organizations such as trusts, estates, and non-profits, among others, will need an EIN.


How Do You Calculate Total Enterprise Value (TEV)?

Response: TEV is calculated as market capitalization + total debt + preferred stock – cash and cash equivalents.


Response: No. Credit cards are covered by the Truth in Lending Act of 1968, modified in 2009 by the Credit Card Accountability, Responsibility, and Disclosure (Credit CARD) Act, but they are not covered by Regulation E, which only covers consumers when they use EFTs.


Response: Individuals can trade GBP and other foreign currencies through a foreign exchange (forex) broker. A forex broker focuses on foreign exchange products.


What Is the Estate Tax Exemption for 2023?

Response: The estate tax is the amount below which a decedent's estate is not subject to taxes. For 2023, the exemption is $12.92 million. For 2024, it increases to $13.61 million.


Will I Lose My Car if I Declare Bankruptcy?

Response: If you bought your car with a loan, your vehicle may be seized as collateral during a bankruptcy proceeding. However, you can usually keep your car by reaffirming your car loan and continuing to make payments. Similarly, you can usually keep your home if you declare bankruptcy, even if you owe money on it, as long as you continue making payments and don’t have more equity than you are permitted under state and federal bankruptcy laws.


Response: In business, logistics is the process of transporting and storing raw materials, finished goods, inventory, and other resources. Logistics in a business is typically made up of many components, including customer service, demand forecasting, warehousing, material handling, inventory control, order processing, and transportation.


Response: The KWD is so valuable because the demand for the currency is very high. The economy of Kuwait is primarily dependent on oil, but not only that, it is a stable country that uses its oil revenue efficiently, unlike many oil-rich countries. In addition, it is a large exporter of oil. Because demand for global oil is high, the demand to pay for it in Kuwaiti currency is also high, making the KWD a very valuable currency.


How Does an Asset Management Company Differ From a Brokerage?

Response: Asset management institutions are fiduciary firms, generally used by people with significant assets. They usually have discretionary trading authority over accounts and are legally bound to act in good faith on the client's behalf. Brokers execute and facilitate trades but do not manage clients' portfolios.


How Do You Interpret a Regression Model?

Response: A regression model output may be in the form of Y = 1.0 + (3.2)X1 - 2.0(X2) + 0.21.Here we have a multiple linear regression that relates some variable Y with two explanatory variables X1 and X2. We would interpret the model as the value of Y changes by 3.2x for every one-unit change in X1 (if X1 goes up by 2, Y goes up by 6.4, etc.) holding all else constant (all else equal). That means controlling for X2, X1 has this observed relationship. Likewise, holding X1 constant, every one unit increase in X2 is associated with a 2x decrease in Y. We can also note the y-intercept of 1.0, meaning that Y = 1 when X1 and X2 are both zero. The error term (residual) is 0.21.


What Type of School Does the Term Higher Education Refer to?

Response: Higher education refers to a course of study beyond the high school level, leading to the award of a degree, diploma, or certificate. This definition can encompass studies at a college, a university, a professional school, or a technical school.


Why Is Not Borrowing for Current Expenses Called the 'Golden Rule' of Government Spending?

Response: Supporters believe that limiting government borrowing to funding only projects that will pay off in the future protects future generations. This is because they won't be burdened by debt from borrowing for expenditures that benefited people in the past, but not them. It is called the "golden rule" to compare it to the ethical golden rule and show that its supporters believe it is equally fundamental.


What Are Other Types of Organizational Charts?

Response: Less commonly used, but still effective in defining roles, are the matrix and divisional organizational charts. The matrix organizational chart groups individuals by their common skill-sets, the departments in which they work, and the people they report to. It is dubbed "matrix" as it shows employees and teams interconnecting with more than one manager. Divisional would show the organization of a company based on some specific criteria, say a product line or geographical area. For example, an auto manufacturer might be organized based on the different types of products they offer.


Response: In business, tit for tat can refer to a strategy of mutual cooperation between parties. Operating in good faith during negotiations, such as a sale of property, for instance, can reduce costs and maximize payoffs for both parties within a transaction. On the flip side, if one party decides to stop cooperating, the counterparty may choose to do the same. This can increase costs on both sides and even ultimately spoil negotiations.


How Is Regulation A Different From Regulation D?

Response: Like Regulation D, Regulation A allows smaller companies to sell securities to the public with fewer reporting requirements than a public offering has. However, Regulation D requires that most investors be accredited investors. Under Regulation A, companies may sell to non-accredited investors. However, there are limits on the amount of money a non-accredited investor may invest.


What Are Common Critiques of the Minsky Moment?

Response: Critics argue that Minsky's theories are too focused on financial markets and neglect the role of real economic factors. Some also argue that his model is too deterministic, suggesting that financial crises are inevitable, which is not always the case. Others criticize the lack of empirical evidence supporting his hypotheses.


Can Winsorized Mean Handle Multiple Outliers?

Response: Yes, winsorized mean can handle multiple outliers within the dataset. It effectively replaces the specified percentage of extreme values, regardless of the number of outliers present. By replacing multiple outliers with less extreme values, the winsorized mean remains less sensitive to the influence of these outliers.


What Is an Example of Strategic Management?

Response: Consider a large company that wants to achieve more ambitious online sales rates. To meet these goals, the company will develop a strategy, communicate this strategy, apply it across various units and departments in the organization, integrate this with employee goals, and execute accordingly. If an effective strategy is applied, ideally, it will help the company achieve its targets through a single, coordinated process.


Why Is Frictional Unemployment a Problem?

Response: Frictional unemployment may be difficult on employers as employees are more willing to voluntarily step aside from their jobs. Companies must be mindful to invest resources in top performers, else those individuals are likely to look for other opportunities. On the other hand, frictional unemployment may also be difficult on job-seekers. Because more people are voluntarily looking for a job, there may be more competition that makes it more difficult for workers to find new roles.


Response: Despite covering many different asset classes and having various structures and regulations, all financial markets work essentially by bringing together buyers and sellers in some asset or contract and allowing them to trade with one another. This is often done through an auction or price-discovery mechanism.


Why Is It Important to Have a Clear Opening Price?

Response: Having a clear opening price is important for traders because many rely on the opening price and later price movements to indicate whether a stock will rise or fall. It also helps reduce uncertainty for investors who wish to buy shares soon after the market opens. Without a way to give each stock a clear opening price, there could be wide bid-ask spreads at market open, which would make trading more difficult and costly.


Response: Escrow is generally considered good, as it protects the buyer and seller in a transaction. In addition, escrow as part of mortgage payments is generally good for the lender and helps the buyer by ensuring property taxes and homeowners insurance are paid on time.


Response: The law of small numbers is the theory that people underestimate the variability in small sample sizes. This means that when people study a sample size that is too small, they usually overestimate the population's value based on the incorrect sample size.


Is There a Reward for Mining Stale Blocks?

Response: Generally, there is no reward for mining a stale block. However, some blockchains might allow for stale block rewards.


What Is the Maximum Tax Refund You Can Get?

Response: There is no maximum. However, the average direct deposit refund for individuals in the 2022 tax filing season was $3,121, according to the IRS.


What Is John Stuart Mill's Utilitarianism Philosophy?

Response: Expanding on philosopher Jeremy Bentham's original doctrine, John Stuart's Mill's utilitarianism has three basic tenets:Pleasure or happiness is the only thing that has true, intrinsic value.Actions are right insofar as they promote happiness; wrong insofar as they produce unhappiness.Everyone's happiness counts equally.Mill espoused these theories in his 1861 essay, Utilitarianism.


How Can a Company Improve its Average Collection Period?

Response: A company can improve its average collection period in a few ways. It can set stricter credit terms limiting the number of days an invoice is allowed to be outstanding. This may also include limiting the number of clients it offers credit to in an effort to increase cash sales. It can also offer pricing discounts for earlier payment (i.e. 2% discount if paid in 10 days).


Can I Start a SIP With a Small Amount of Money?

Response: Yes, SIPs allow individuals to start investing with small amounts, making it accessible to a wide range of investors. The minimum investment amount varies depending on the mutual fund or investment provider.


Response: Savings is one benefit. If a company can spend less by producing a product or completing a project in-house compared to what it would spend on an outside vendor, then internalization would be a beneficial move.


Response: A capital improvement fee is a one-time fee charged by a Homeowner's Association whenever a property in the HOA is sold. This fee is usually used to pay for future capital improvements in the community. The size of the fee varies, but it is usually around one year of HOA fees.


How Is Feminism Different From Egalitarianism?

Response: Feminism and egalitarianism have shared aspects, but they are not the same thing. Feminism is the belief that gender discrimination has to be eliminated for men and women to be considered equal. Egalitarianism is the idea that everyone is created equal and deserves equal rights.


What Can CPAs Do That Accountants Cannot?

Response: A CPA is an accountant who has earned a professional credential. Their main responsibilities are the same and involve preparing or reviewing financial documentation for businesses or individuals.CPAs are authorized to take on certain other roles. These include performing audits of public U.S. companies and preparing audited financial statements for a company, such as a balance sheet or an income statement.


Response: A valuation analyst performs an appraisal of a business, which includes examining costs, risks, industry trends, budgets, timelines, cash flows, and a slew of other metrics to determine the valuation of a business.


Are Thematic ETFs at Risk of Becoming Zombie ETFs?

Response: A thematic ETF invests in current megatrends that are seen as transformative, not to mention lucrative. In 2023, the list could include ETFs that focus on artificial intelligence, the blockchain, and alternative energy sources.A thematic ETF is probably never going to attract as high a total of assets under management (AUM) as an ETF that is tied to the S&P 500. That does not mean it's headed for zombie territory.Some will perform very well for the informed investor who wants to put some money into a hot area but wants the diverse selection of related assets that an ETF offers.As always in investing, there will be winners and there will be losers.


What Is the Standard Deduction for 2023?

Response: For Tax Year 2023, the standard deduction is $13,850 if you file as single or married filing separately. It's $20,800 for heads of household and $27,700 for married filing jointly or qualifying widow(er) taxpayers.


What Are the Types of Bankruptcy for Individuals

Response: Individuals most often file for Chapter 7 or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, many of the filer's assets (except certain exempt ones) will be sold off by a court-appointed trustee, after which most of their remaining debts will be discharged. In a Chapter 13 bankruptcy, the person can keep more of their assets but must agree to a court-supervised plan to repay their debtors over a certain period, often three to five years.


How Many Generations Does Per Stirpes Cover?

Response: Per stirpes determines that in the event of an "out of order" death, the inheritance which would have been awarded to the beneficiary that passed away is given to that beneficiary's children. Thus, per stirpes covers the grandchildren of the testator.


How Are Coupon Rates Affected by Market Interest Rates?

Response: A bond issuer decides on the coupon rate based on prevalent market interest rates, among others, at the time of the issuance. Market interest rates change over time, and as they move lower or higher than a bond's coupon rate, the value of the bond increases or decreases, respectively. Since a bond's coupon rate is fixed all through the bond's maturity, bonds with higher coupon rates provide a margin of safety against rising market interest rates.


Which Incumbent Presidents Lost Their Second Term?

Response: The incumbent presidents that lost their second term are John Adams, John Quincy Adams, Martin Van Buren, Franklin Pierce, Benjamin Harrison, William Taft, Herbert Hoover, Jimmy Carter, George Bush Sr., and Donald Trump.


Is the lower of cost or market (LCM) method required by generally accepted accounting principles (GAAP)?

Response: Yes, the LCM method is required under GAAP. This method became required as of 2017.


Response: Financial distress is a condition wherein an individual or company isn't able to cover their financial obligations. This means the entity is not generating enough revenue or income to pay its debts. This condition can be the result of a drop in income, changes in the economy, higher costs, bad budgeting, and/or overspending.


What Happens if You Don't Pay Your Loan on the Due Date?

Response: What happens will depend on the type of loan. In most cases, you will be charged a late fee. If you rectify the situation, that's as bad as it may get. If you keep missing payments, then you may have your interest rate increased depending on the loan and the contract, you may be reported to the credit bureaus, hurting your credit profile, and then eventually your account may go to collection agencies.


Response: The amount of income tax you contribute from each paycheck depends on several factors, including total annual earnings and your filing status.


Response: The Upfront Mortgage Insurance (USMI) premium is not refundable, except when in connection with refinancing to a new FHA-insured mortgage within three years of the original loan.


What Are Long-Term Marketable Securities?

Response: Marketable securities can be most investments, including stocks, bonds, and exchange-traded funds (ETFs). Marketable securities are considered current assets and are expected to be sold in less than a year, usually a few months. These types of securities are typically liquid securities that can be sold easily as there is a large number of buyers.


How Do I Know the Fair Market Value of My Home?

Response: Real estate property is assessed by professional appraisers who can tell you its fair market value using standards, guidelines, and national and local regulations to determine it.


Response: In many cases, tit for tat strategies may maximize payoffs for different parties. This is especially the case when confronted with a prisoner's dilemma, in which cooperation can result in mutual benefit, and retaliation can lead to the least desirable results for both parties.


Response: Understanding a region's working-age population, and how it changes over time, matters because of what it indicates about that region's economic prospects. If the working-age population is declining over time, there will be fewer workers to fill future jobs as current workers retire. There will also be fewer workers to pay taxes and provide vital services in the public sector. If the working-age population is growing, the region will need to attract businesses to create new jobs for those workers.


What Are the Types of Portfolio Management?

Response: Broadly speaking, there are only two types of portfolio management strategies: passive investing and active investing. Passive management is a set-it-and-forget-it long-term strategy. Often referred to as indexing or index investing, it aims to duplicate the return of a particular market index or benchmark and may involve investing in one or more exchange-traded (ETF) index funds. Active management involves attempting to beat the performance of an index by actively buying and selling individual stocks and other assets. Closed-end funds are generally actively managed.


Response: Traders may use inverse ETFs to profit from or hedge against declines in a specific market. Short-term traders may also use them to speculate on downward moves.


How Can Market Psychology Help Me With Trailing Stops?

Response: During momentary price dips, it's crucial to resist the impulse to reset your trailing stop, or else your effective stop-loss may end up lower than expected. By the same token, reining in a trailing stop-loss is advisable when you see momentum peaking in the charts, especially when the stock is hitting a new high.


Response: Generally, a morning star pattern is very reliable, especially if it is incorporated with other technical indicators and further analysis of the asset. It is also a pattern that is helpful to both beginner and professional traders.


How Do You Calculate Accounts Receivable Aging?

Response: Accounts receivable aging sorts the list of open accounts in order of their payment status. There are separate buckets for accounts that are current, those that are past due less than 30 days, 60 days, and so on. Based on the percentage of accounts that are more than 180 days old, a company can estimate the expected amount of unpaid accounts receivables for future write-offs.


Response: An MPA program often consists of coursework in law, international affairs, political theory, urban planning, nonprofit organizations, and public service leadership, among other subjects.


Response: You can get rid of a lien on your property, car, or other asset by paying off your loan in full.


Does a CEO Outrank a Board of Directors?

Response: No, the CEO (who may be on the board) and the directors work together on relevant company issues. The Board doesn't interfere with the CEO's handling of a company's daily operations. But it has the authority to evaluate the performance of a CEO and remove them, if deemed necessary.


Response: The wrap fee you pay covers all the services for your wrap account. These fees typically include administrative costs, brokerage fees, investment advice, third-party services, and other fees.


Response: Contractionary policies require elected officials to increase taxes and reduce government spending, like social and welfare programs, both unpopular with voters.


What Are the Main Steps of Investment Analysis?

Response: The first step to investment analysis is identifying an investment opportunity. From there, an investor needs to determine whether this investment opportunity will create higher returns than other available investment options. Lastly, an investor will need to gauge whether the possible reward from this investment opportunity justifies the risks.


Are Triangle Patterns Bullish or Bearish?

Response: That depends on the type of triangle. Ascending triangles tend to be bullish as they indicate the continuation of an upward trend. In some cases, they may also point to the reversal of a downtrend. A descending triangle, on the other hand, are bearish. That's because they point to the continuation of a downtrend or the reversal of an uptrend.


What Happens if You Lie on a Loan Application?

Response: If you lie on an application to borrow money, you can be rejected for the loan if the lender determines the information is false. If you received funds for the loan and then the lender detects false information on your loan, you may have to repay all the funds. Finally, you could potentially go to jail for lying on a loan application, depending on the circumstances.


Response: In novation, one party in a two-party agreement gives up all rights and obligations outlined in a contract to a third party. As a result, the original contract is canceled.


What Are Some Examples of Financial Instruments?

Response: Financial instruments come in many forms and types. What makes them financial instruments is that they confer a financial obligation or right to the holder. Common examples of financial instruments include stocks, exchange-traded funds (ETFs), mutual funds, real estate investment trusts (REITs), bonds, derivatives contracts (such as options, futures, and swaps), checks, certificates of deposit (CDs), bank deposits, and loans.


Response: It can be. Usually, grunt work is required to support higher level assumptions, conclusions, and recommendations. You might think of it as the basis for fees your company may be able to charge, successful investment results for clients, and your career advancement.


Response: Low unemployment is not considered healthy, as lower rates can be seen as inflationary due to pricing pressure on salaries; however, high unemployment is not considered healthy, as higher rates can be seen as a financial strain on consumer spending. In general, most experts deem unemployment between 3% and 5% to be ideal, though there is no single consensus on what constitutes healthy unemployment.


What Advantages Does the Incumbent Candidate Have?

Response: The advantages that an incumbent candidate has include being a known quantity. Their name is known, their personality, their beliefs, and their opinions, the knowledge of running a successful campaign, an air of success, established donors, the risk aversion of voters, and control over certain areas of the government.


What is the entry of a drawings account?

Response: The accounting entry typically would be a debit to the drawing account and a credit to the cash account—or whatever asset is withdrawn.


Response: There isn't data for "the most egalitarian society" in the world, but in terms of economic inequality, European countries Slovenia, Czech Republic, and Slovakia rank as having the least wealth inequality in 2022.


What Is a Natural Indication of Interest?

Response: A natural indication of interest occurs when IOI originates with the customer, rather than a firm. FINRA defines it as referring "either to customer interest a firm represents on an agency basis or to proprietary interest that was established to facilitate a customer order or as part of an execution of a customer order on a riskless principal basis."


What Is a Writ of Execution Used for in the United States Today?

Response: A writ of execution is a legal document issued by a court directing a Sherriff's office or the U.S. Marshal Service to enforce and satisfy a judgment for payment of money. This may include the seizure of assets.


Response: No. 1099-B reports capital gains and losses. A capital gain or loss results from selling an asset you own, such as a stock, stock option, or bond. Earned income is income you receive from your employment.


How Early in 2024 Can I Start Filing My Taxes?

Response: The IRS begins accepting returns sometime in January every year, although no exact date has been specified at this writing. In any case, it will probably be late January before you receive all of the necessary forms from your employer and any other source of taxable income.If you plan to file directly, you might consider creating an account at IRS.gov/account, where you'll find useful information about filing.


Is Insurable Interest Required for Insurance Policies?

Response: Yes. Insurable interest is, essentially, proof that an individual or entity would experience financial or other hardships as the result of damage to or loss of an item or person. This is evaluated during the underwriting process to ensure this direct link. Such proof of insurable interest is required for all insurance policies.


Can I Deduct My Business Travel Expenses?

Response: Business travel expenses can no longer be deducted by individuals.If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.If you work for a company and are reimbursed for the costs of your business travel, your employer will deduct those costs at tax time.


How does swing trading differ from day trading?

Response: Day trading, as the name suggests, involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems. Day trading seeks to scalp small profits multiple times a day and close out all positions at the end of the day. Swing traders do not close their positions on a daily basis and instead may hold onto them for weeks, months, or even longer. Swing traders may incorporate both technical and fundamental analysis, whereas a day trader is more likely to focus on using technical analysis.