Academic research suggests that investors can realize greater investment returns over multiple business cycles when they allocate a portion of the investment portfolios in small and mid cap sized companies. Many investors place too great an emphasis on large cap stocks for their asset allocation models. By so doing, investors miss a significant portion of…
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How Do Foreign Currency Exchange Rates Affect The Value Of U.S. Stocks?
Many investors have noticed recently, the rapid changes in foreign currency exchange rates. How do foreign currency changes affect the value of U.S. stocks? Foreign currency exchange rates can impact U.S. stocks directly and indirectly by the economic undercurrents which change the relative value or purchasing power of a countries’ currency. The economies around the…
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Sharing in Your Company’s Profits through Employee Stock Options
Corporate America has relied upon employee stock option plans as a valuable incentive program which aligns the company’s financial performance with employee compensation. Employees stock options are a form of non-cash compensation that employers offer to employees the option to purchase company stock at a specific price in the future. The two basic types of stock…
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Bond Duration: An Important Consideration Managing Bond Portfolio Risks
Most investors will admit that they have themselves, or know someone, that has refinanced their home mortgage in the last six years because interest rates were so low. The financial media has led average investors to believe that interest rates are so low that there is no other direction but higher. In the face of…
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