Personal Finance

It’s an unfortunate reality that older adults, who have had more time to accumulate wealth, are at an increased risk of being targeted by some fraudsters—and of losing more money per fraud incident. However, the risk might not affect everyone equally. In research by the FINRA Investor Education Foundation, certain behaviors and characteristics were found to be associated with an increased risk of fraud victimization in older adults.

In physics, momentum refers to the tendency of an object to continue moving in a particular direction due to its mass and velocity. The velocity, or direction, of momentum can change due to an external force and is governed by laws like Newton’s laws of motion. 

Funds that track market indexes have historically offered investors a cost-effective and efficient way to gain exposure to the performance of a market benchmark or index. “Traditional” market indexes such as the S&P 500 or Dow Jones Industrial Average provide investors with exposure to a broad basket of securities and, as a result, generally offer less risk as compared to investing in individual securities. Increasingly, opportunities are also available to invest in alternative investments and strategies through funds that track “non-traditional” indexes.

FINRA has identified an increase in unregistered entities claiming to provide automated or “auto-trading” services to retail investors through websites or mobile phone apps. Many of these unregistered entities misleadingly claim that their auto-trading services are beginner-friendly and/or risk-free, provide consistent monthly returns of more than 10 percent, and/or benefit from using advanced technologies like artificial intelligence (AI) to make trading decisions. 

A common way to measure the performance of the stock market is by looking at market indexes, also referred to as benchmarks. The Dow Jones Industrial Average and the S&P 500 Index are two of the most widely recognized market benchmarks and, if you’re looking to replicate their performance, investing in mutual funds and exchange-traded funds (ETFs) that mimic these indexes might suit your needs.

In a reversal of a 12-year period of sustained improvements in many of the key areas of financial capability, the sixth wave of the FINRA Investor Education Foundation’s National Financial Capability Study (NFCS) reveals an overall pattern of decline in the ability of U.S. adults to make ends meet and save for emergencies. While income remained steady, the impact of increased costs has put more households under financial strain than in years past.

While some investors have a background in finance or accounting, you don’t need a specialized degree to read a company’s financial statements and glean valuable information that can help you make your investment decisions.

There’s a wealth of financial data about a company’s operations, investments, indebtedness and much more easily accessible to investors who know where to look. This data is reported on standard financial statements, including the following:

Value investing involves buying securities that, based on fundamental analysis (studying financial statements or business positioning), are trading below their intrinsic worth or at a discount to the market or their peers. Value investors consider various financial performance metrics, including price-to-earnings (P/E) ratio, price-to-book (P/B) ratio and many others.

Fractional shares offer investors an opportunity to purchase pieces of stock shares. While fractional shares can offer flexibility and convenience, it’s important to understand their associated limitations and how your brokerage firm handles them.

As online trading platforms grow and expand access to investing, many people are turning to online services for their investing needs. These platforms allow users to enter buy or sell orders on a mobile device or computer rather than speaking directly with a representative at a brokerage firm. While this might sound straightforward, common misconceptions persist.

If you’re considering online trading, make sure you research the firm and understand the process before you invest. Here are answers to some common questions to get you started.