Lets Talk About Leverage
In finance, leverage refers to the ratio of debt to equity. The higher the proportion of debt, the more leverage. Leverage allows you to use a small amount of your own money to make an investment that you expect to increase in value. In that way, leverage can increase your buying power and give you [...]
What is the Efficient Market Hypothesis?
In finance, the efficient market hypothesis (EMH) asserts that financial markets are “efficient”, or that the current price of a share reflects everything that is known about the company and its future earnings potential, and is, therefore, accurate in the sense that it reflects the collective beliefs of all investors about future prospects.
Do You Need an Emergency Fund?
We typically hear that everyone should have an emergency fund equal to three to six months (or more) worth of basic living expenses. But, do you really need such an emergency fund? I’m not sure you do.
Emergency funds give you something to fall back on if you become ill or disabled and can’t work, if [...]
