Terminology: Exchange Traded Funds

An ETF is a security that tracks an index, commodity or a basket of assets. Each ETF has a preselected collection of stocks or bonds. ETFs are less costly than purchasing mutual funds or even buying individual stocks. Each time you buy or sell an individual security you pay trading costs, while an ETF is…

Terminology: Stock Buyback

When companies have extra cash resources and no other investment alternative, they will often choose to buy back their own stock.  There are a few reasons why a company would want to buy their own shares back: When they buy back shares, there are fewer shares on the market to be traded.  The price of…