Category: Investing 101

What is an aged shelf company?

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What is a shelf company? You will also hear people refer to such an entity as a shelf LLC, shelf corporation or aged corporation. The definition of a shelf company is a corporation, LLC or similar legal entity filed on a prior date and put on the shelf to age. Therefore, you can acquire an existing, older organization rather than ….  Read More

What Is an Angel Investor?

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An angel investor (also known as a private investor, seed investor or angel funder) is a high net worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur’s family and friends. The funds that angel investors provide ….  Read More

Alternative Investments

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Alternative investments include asset classes outside of traditional securities such as stocks, bonds, and currencies. They include artwork, wine, gems, real estate, and cryptocurrency. Most people think of investing as buying stocks, bonds, mutual funds, or exchange-traded funds (ETFs). The more adventurous might think about a real estate investment trust (REIT). Some people also might consider buying stocks of ….  Read More

What is Asset Management?

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Asset management is the direction of all or part of a client’s portfolio by a financial services institution, usually an investment bank, or an individual. Institutions offer investment services along with a wide range of traditional and alternative product offerings that might not be available to the average investor. Understanding Asset Management Asset management refers to ….  Read More

What Is a Portfolio Investment?

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A portfolio investment is ownership of a stock, bond, or other financial asset with the expectation that it will earn a return or grow in value over time, or both. It entails passive or hands-off ownership of assets as opposed to direct investment, which would involve an active management role. Portfolio investment may be divided ….  Read More

Investing versus Speculation

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Whether buying a security qualifies as investing or speculation depends on three factors: The amount of risk taken on – Investing usually involves a lower amount of risk compared with speculation. The holding period of the investment – Investing typically involves a longer holding period, measured quite frequently in years; speculation involves much shorter holding ….  Read More

How to Invest

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The question of “how to invest” boils down to whether you are a Do-It-Yourself (DIY) kind of investor or would prefer to have your money managed by a professional. Many investors who prefer to manage their money themselves have accounts at discount brokerages because of their low commissions and the ease of executing trades on ….  Read More

Comparing Investing Styles

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Let’s compare a couple of the most common investing styles: Active versus Passive Investing – The goal of active investing is to “beat the index” by actively managing the investment portfolio. Passive investing, on the other hand, advocates a passive approach such as buying an index fund, in tacit recognition of the fact that it ….  Read More

Types of Investments

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While the universe of investments is a vast one, here are the most common types of investments: Stocks – A buyer of a company’s stock becomes a fractional owner of that company. Owners of a company’s stock are known as its shareholders, and can participate in its growth and success through appreciation in the stock ….  Read More

Shadow Capital

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Shadow capital refers to the practice of institutional investors, family offices and sovereign wealth funds deploying their capital alongside (or even in competition with) private equity funds, but in ways that stand apart from the traditional GP-LP relationship, where the investors place their capital in the hands of a fund manager to invest on their ….  Read More