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Tip of the Day Pay Your Bills On Time

Pay Your Bills On Time - We all get behind on our bills every once in a while, but when it becomes a constant practice it starts to cost us...

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Stock Split

Definition: When the number of shares of a stock is increased but the price per share decreases.  Companies typically do this when the stock price gets too high for small investors to be able to afford a share.

TeenAnalyst Advice: For example, if a stock is at $100 per share, the management might decide to do a 2-for-1 split and decrease the price to $50 per share but give each person twice as many shares.  This is often a gimmick and has no real importance to how the company will do in the future.

Think of it this way...if you gave me a quarter and I gave you back two dimes and a nickel, you still have the same amount of money.  And it's no sign of how much money you'll have in the future.

 

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Definition of the Day Convertible Auction Rate Preferred Stock

Convertible Auction Rate Preferred Stock - a convertible auction rate preferred stock is a certain type of an auction related preferred stock that can be converted into shares of the underlying security an underlying security is a commodity or security, which is subject to delivery when an option is exercised...

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