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Tip of the Day Get a Better Cell Phone Plan

Get a Better Cell Phone Plan - Cell phones are so popular today you can customize your plan to suit your needs and if you have not updated your cell...

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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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Definition of the Day Nominal Value

Nominal Value - Nominal Value is the apparent worth or the known nominal value shown on the principal, the face, and the side, of a bill of exchange, currency, security, stock, share, bond, or the other type of financial instruments. The par value of a loan stock, bond, preferred stock,...

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