H-M Archives - PersonalFinanceLab

Long Stock

Kevin Smith — Sun, 04 Mar 2018 22:28:04 +0000

A long stock is an expression used when you own shares of a company. It represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, your ownership stake in the company increases. Read this post to learn about the components of a long stock, and what it looks like graphically.

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Long Call

Bavan Arumugam — Wed, 27 Dec 2017 16:21:44 +0000

A long call is a term used when you own a call option for an underlying asset. A call option is a contract where the buyer has the right (not the obligation) to exercise a buy transaction at a specific strike price at or before an expiration date. In the world of trading, owing a long call means that you have a contract that gives you the right to buy the underlying asset at a specific price, before a maturity date.

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Long Put

Bavan Arumugam — Wed, 27 Dec 2017 16:13:24 +0000

A long put is a term used when you own a put option for an underlying asset. A put option is a contract where the buyer of the put has the right (not the obligation) to exercise a sell transaction at a specific strike price before an expiration date. In the world of trading, owning a long put means that you have a contract that gives you the right to sell the underlying asset at a specific price, before a maturity date.

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Mortgages

Kevin Smith — Mon, 14 Aug 2017 15:13:56 +0000

Your home will probably be the biggest purchase you make in your lifetime. Buying a home not only saves money on rent, but is a serious asset that can appreciate over time. Since homes are so expensive, (almost) no-one buys them in cash. Instead, homes are typically purchased with a special type of loan, called a “Mortgage”, that breaks the principle and interest into equal payments over the entire term of the loan.

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Interest Rates

Kevin Smith — Wed, 15 Jun 2016 19:58:51 +0000

Interest rates are a percentage that is used to calculate how much a loan or investment grows over time. A "Nominal" interest rate is just the percentage on the loan - the "Real" rate subtracts expected inflation

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Marginal Benefit and Marginal Cost

Kevin Smith — Tue, 14 Jun 2016 14:50:05 +0000

Everyone knows about costs and benefits of doing something - the pros and cons of making a choice. Marginal benefit and marginal cost are different - they look more closely at doing slightly more or less of different alternatives. Marginal costs and benefits are extremely important to producers when choosing their inputs and prices.

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Incentives

Kevin Smith — Fri, 10 Jun 2016 14:44:17 +0000

Economic Incentives include anything that pushes people, businesses, and governments to do one thing or another. These include what products you buy, what career you choose, what products businesses produce, and what government programs are put in place

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Money – Types of Stored Value

Kevin Smith — Fri, 15 Apr 2016 20:33:47 +0000

Money has value because we all agree it has value, and so we can use it as a medium of exchange. Forms of Stored Value simply are a storage system for money like checks and debt cards, meaning they do not have any value in and of themselves.

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Major Economic Indicators

Kevin Smith — Mon, 18 Jan 2016 19:46:51 +0000

"Major Economic Indicators" are numbers that you can look at to try to get a picture of how well the economy is doing. This includes GDP, Output, Inflation, Unemployment, and more!

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Money Creation

Kevin Smith — Wed, 13 Jan 2016 21:47:40 +0000

In the US, money is created as a form of debt. Banks create loans for people and businesses, which in turn deposit that money in their bank accounts. Banks can then use those deposits to loan money to other people - the total amount of money in circulation is one measure of the Money Supply.

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