Money

What is the difference between a mutual fund and an ETF?

So, the main difference is in how they trade. ETFs basically trade like stocks where they're exchanging hands and priced thousands of times, every single day, between the open and close. Mutual funds are priced at the end of the trading day at their net asset value. Also, ETFs are generally more tax efficient than mutual funds.

Read Now Show less

How does Black Friday impact the economy?


So, Black Friday is known for kicking off the holiday shopping season and the weekend can be critical to retailer's annual performance. Investors also see it as a good indicator of the health of the retail industry. Last Thanksgiving weekend, 165 million Americans went shopping in stores and online. Online alone for Black Friday, they spent $6.2 billion.

Read Now Show less

What is a SPAC and how does it work?

So, SPAC is short for: Special Purpose Acquisition Company. That's when a company raises funds through an IPO and uses those funds to buy an operating business. You've seen SPACs grow in recent years and in fact, we just had one here. Virgin Galactic came public through a SPAC merger.

Read Now Show less

What do people think is driving the stock market's recent record high gains?


Well, there's really no precise answer, but analysts point to several factors. So, number one is strong third quarter earnings. Companies have reported stronger than expected results so far this season. The second is the jobs market. You saw the October jobs numbers exceed economists' expectations. And the third is the Federal Reserve cutting interest rates three times this year. That lowers borrowing costs for consumers and businesses and encourages them to spend more.

Read Now Show less

Why do companies choose to go public?

So, companies choose to go public for many reasons. A major one is that they need to raise capital in order to expand their businesses. They also want to raise the profile of their brand and they want to also allow early investors to exit their shares to monetize the shares that they invested in the company early on. Now, in terms of creatively raising their profile, for example, Chewy's in their IPO, had a dog on their podium.

Read Now Show less

How does the stock market impact my daily life?

Well, the stock market is collectively a place where investors can buy and sell shares. Sometimes people think of the stock market as an economic indicator. Now, a majority of Americans, over 55 percent, are invested in the stock market through things like 401(k)'s, IRAs, and also college savings plans.

Read Now Show less

Money In 60 Seconds has a new host. Meet New York Stock Exchange's Executive Vice Chairman Betty Liu. You can watch her first episode of Money In 60 Seconds below:

Read Now Show less

Is consulting a financial advisor something everyone should do?

Not if you're consulting them for stock picking. That "I'm going to pick the right stock and outperform this market and that market." Typically, it just doesn't work. There are very few financial advisors who consistently outperform the market — as in very, very few. Yes, however, if you're looking for good asset allocation, rebalancing, setting a plan, putting it in place. And the great news is those things are available today, through technology, at ever-lower minimums than were available before. And they can keep you, quite honestly, by putting you on a plan, can keep you from you trying to do the stock picking and harm yourself.

Which brings me to the next question...

Should I invest in Facebook or Amazon?

Is investing in them, in big tech, still a good idea? Yes, but only as part of a diversified investing plan.