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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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Zero-sum Game

Definition: Zero-sum games involve situations in which one person's gains are the result of another person's losses.  No wealth is created (or destroyed) in these games.

Examples: Examples of zero-sum games include options and futures.  If a person makes money on an options or future contract, it means the person who sold it to him lost money.  Another example is gambling: either you or the house win.

What about the stock market? The stock market is not a zero-sum game because stocks are not simply investments traded from one party to another.  Rather, they're representative of the underlying business.  So if the business creates value, the stock will do so for the investor as well.

 

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Definition of the Day Outstanding

Outstanding – the word outstanding in the investment and financial industry means   2 different things.  When talking about outstanding debt, it means the amount of debt not yet paid.  When the word outstanding is used when talking about securities, the word means the amount of funds that is in...

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