what is economics…? In order to begin our discussion of economics, we first need to understand some important concepts. For instance, what is the economy anyway? When we hear that “the economy is growing” or that “the economy is doing poorly,” what does that mean? At the most abstract level, the economy is a system…
Economics is a field of study that has become increasingly relevant in our globalized, financialized society. The economy is part of our collective conscious and a buzzword that links personal finances to big business and international trade deals. Economics deals with individual choice, but also with money and borrowing, production and consumption, trade and markets,…
What is stock? Perhaps the most common misperception among new investors is that stocks are simply pieces of paper to be traded. This is simply not the case. In stock investing, trading is a means, not an end. A stock is an ownership interest in a company. A business is started by a person or…
In order to buy stocks, you need the assistance of a stockbroker since you cannot usually just call up a company and ask to buy their stock on your own. For inexperienced investors, there are two basic categories of brokers to choose from: a full-service broker or an online/discount broker. Full-Service Brokers Full-service brokers are…
Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and…
