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Tip of the Day

Tip of the Day Make Your Own Meals

Make Your Own Meals - We all enjoy going out for dinner, but when it becomes a habit due to a busy schedule or kid's desires, it can become extremely...

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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 Increasing returns to scale

Increasing returns to scale – An increased return to scale occurs when production is greater than the past due well-organized operational practices, and when the cost per element of assembly is reduced.  Increasing returns to scale is otherwise known as economies of scale or decreasing costs.  This term is best...

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