Author: Helen Barklam

IntroductionA stock option plan is a type of employee compensation and ownership plan that allows employees to purchase company stock at a discounted price. It is a great way to reward employees for their hard work and dedication to the company, while also providing them with an opportunity to become shareholders. Stock option plans can be used to incentivize employees to stay with the company, as well as to reward them for their performance. Additionally, stock option plans can be used to attract and retain top talent. By offering stock options, companies can provide employees with a sense of ownership…

IntroductionA direct stock purchase plan (DSPP) is a program offered by many companies that allows investors to purchase stocks directly from the company, without the need for a broker. This type of plan is beneficial for investors who want to buy stocks without paying broker fees or commissions. DSPPs are also a great way to build a portfolio of stocks from a variety of companies. To use a DSPP, investors must first open an account with the company offering the plan. Once the account is opened, investors can purchase stocks directly from the company, often at a discounted price. Additionally,…

IntroductionA dividend reinvestment plan (DRIP) is an investment strategy that allows investors to reinvest their dividends back into the same security or fund. This allows investors to compound their returns over time, as the reinvested dividends generate more dividends, which are then reinvested again. DRIPs are a great way to build wealth over the long term, as the compounding effect of reinvesting dividends can lead to significant returns. To use a DRIP, investors must first purchase shares of a security or fund that offers a DRIP. They can then set up their DRIP to automatically reinvest their dividends back into…

IntroductionTax loss harvesting is a strategy used by investors to reduce their taxable gains when selling stocks. It involves selling stocks at a loss to offset any gains made from other investments. This strategy can be used to reduce the amount of taxes owed on capital gains, as well as to create a tax-free income stream. Tax loss harvesting can be used in both taxable and tax-deferred accounts, such as IRAs and 401(k)s. By strategically selling stocks at a loss, investors can reduce their taxable gains and maximize their after-tax returns.What is Tax Loss Harvesting and How Can it Help…

IntroductionA wash sale is a transaction that occurs when an investor sells a security at a loss and then repurchases the same security within 30 days. This type of transaction is prohibited by the IRS because it is seen as a way to avoid paying taxes on the capital loss. To avoid a wash sale, investors must be aware of the rules and regulations surrounding the sale of securities and be mindful of the timing of their transactions. Additionally, investors should be aware of the potential tax implications of their transactions and plan accordingly.What is a Wash Sale and How…

IntroductionA cash account is a type of brokerage account that requires you to pay for all purchases in full. This means that you must have enough cash in the account to cover the cost of any securities you buy. Cash accounts are a great way to avoid margin interest and fees, as you are not borrowing money to purchase securities. With a cash account, you can buy stocks, bonds, mutual funds, and other investments without having to worry about paying interest or fees. In this article, we will discuss how to use a cash account to avoid margin interest and…

IntroductionA margin account is a type of brokerage account that allows investors to borrow funds from their broker to purchase additional securities. This type of account is often used by investors who want to leverage their capital to increase their potential returns. By using a margin account, investors can borrow funds to purchase additional stocks, bonds, or other investments. The borrowed funds are secured by the investor’s existing portfolio, and the investor is responsible for paying back the loan with interest. Margin accounts can be a great way to increase your potential returns, but they also come with risks. It…

IntroductionA market order is a type of order used in trading that instructs a broker to buy or sell a security at the best available price in the current market. Market orders are used to ensure that an order is executed quickly and at the best available price. Market orders are often used when an investor wants to buy or sell a security as soon as possible, and is willing to accept the current market price. Market orders are also used when an investor wants to buy or sell a large quantity of a security and needs to ensure that…

IntroductionA trailing stop is a type of stop-loss order that adjusts automatically with price movements. It is used to protect profits and limit losses when buying or selling securities. The trailing stop follows the price of the security, either up or down, and triggers a sale when the price reaches a certain level. This allows traders to take advantage of market movements while still controlling their risk. By using a trailing stop, traders can dynamically control their losses and maximize their profits.What is a Trailing Stop and How Can it Help You Manage Risk?A trailing stop is a type of…