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Tip of the Day

Tip of the Day Spend Less Than You Earn

Spend Less Than You Earn - To spend less than you earn, basically, means to live within your means. In other words, if you don't have the cash to...

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Capital Gains

Definition: The money gained when a stock appreciates (goes up).  For example, if you owned 10 shares of stock that you paid $15 for and it went up to $30, you would have $150 in capital gains.

TeenAnalyst Advice: Capital gains are where you'll make the majority of your money if you invest in common stock.  Some people think you make most of your money from dividend.html">dividends.  That's wrong.

It's also important to realize that you'll have to pay taxes on the capital gains you receive.  This is called a capital gains tax.  However, if you hold the stock for a while, you might qualify to pay a reduced capital gains tax called the "long-term capital gains tax."  It's yet another benefit of buy and hold investing!

 

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Daily Definition

Definition of the Day Horizontal Market

Horizontal Market – A horizontal market is a system with services, needs and information pertaining to numerous types of industries.  The opposite of a horizontal market is quite obviously a vertical market where consumers are able to trade within only a specific industry.  Horizontal markets are arguably most prevalent within...

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