Options can act like insurance on stocks or ETFs you own. Used this way, they limit losses rather than chase gains. But insurance has a price, and options are complex, so it is worth understanding the mechanics before using them. The basics Brokers must approve you for options trading, and you receive the industry disclosure … Read more
Children learn about money mostly by watching and doing. You do not need a course. Small, repeated experiences that fit their age teach more than lectures about the stock market. Ages 3 to 7: money is a choice Ages 8 to 12: money can grow Ages 13 and up: real accounts, real decisions Topics teenagers … Read more
Meme stocks are shares whose price is driven mainly by social media buzz rather than company results. The best-known episode came in January 2021, when retail traders on Reddit’s WallStreetBets pushed GameStop from under $20 to an intraday high near $483 in a few weeks, squeezing hedge funds that had bet against it. AMC, Bed … Read more
Saving and investing both mean setting money aside, but they do different jobs. Saving protects money you will need soon. Investing grows money you will not need for years, in exchange for accepting that its value goes up and down. Saving: safety and access Savings usually sit in a bank or credit union account: a … Read more
You owe capital gains tax when you sell an investment for more than you paid, in a regular (taxable) brokerage account. Inside 401(k)s and IRAs, trades are not taxed when they happen. Managing capital gains is mostly about timing, account choice and record keeping. Short-term vs long-term For the 2026 tax year, the 0% rate … Read more
A bull market is a period of rising stock prices. A common definition is a rise of 20% or more from a recent low, lasting until the next drop of 20% (a bear market). Bull markets are driven by growing profits, a healthy economy and investor confidence, often helped by falling or low interest rates. … Read more
A bear market is commonly defined as a decline of 20% or more from a recent peak in a broad index such as the S&P 500. A drop of 10% to 20% is usually called a correction. Both are normal parts of investing in stocks. How often and how long Since World War II, the … Read more
Interest rates are often called the price of money. When they change, they ripple through the economy and through how investors value every stock. That is why markets watch every Federal Reserve meeting closely. Who sets rates The Federal Reserve sets a target for the federal funds rate, the rate banks charge each other overnight. … Read more
A stock split divides each existing share into several new ones. In a 2-for-1 split, every share becomes two shares, each worth half the former price. The company’s total value and your share of it stay exactly the same: you have more slices of the same pizza. An example You own 10 shares at $600, … Read more
You cannot remove risk from investing, but you can choose which risks you take and how much. Good risk management is mostly about avoiding the mistakes that turn a temporary drop into a permanent loss. Know the risks you are dealing with 1. Match risk to your timeline Money needed within a few years should … Read more
