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February 2009

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• 02.27.09
  Dividends Investing | (0)

  Dividends are generally cash payments distributed to owners of a stock. Companies are not required to issue dividends to their stock holders, but many companies decide to do so in order to create value and encourage ownership of their stock. Another way to view dividends is as a distribution of the company's earnings to the company's owners (share holders). When a company earns a profit, it must decide what to do with its surplus cash. It can reinvest the surplus back into the company or it can distribute it to its shareholders in the form of a cash ...
• 02.27.09
  Savings Account Banking | (1)

  Savings accounts are financial accounts where consumers give their money to a consumer financial institution such as a bank or credit union in order to receive a financial return in the form of interest payments. In most cases, money in a savings account is more difficult to access than money deposited in a checking account but offers a higher interest rate (often expressed in APY, annual percentage yield). A savings account holder must travel to an ATM or visit a bank teller in order to be able to access funds in their account. This is different from a checking ...
• 02.27.09
  Interest Rate Banking, Debt | (2)

  An interest rate is the cost or benefit associated with the lending of money. Where interest rates are concerned there are always a borrower and a lender. Borrowers pay interest while lenders receive interest payments. From the perspective of a borrower, an interest rate can be considered the price that he pays to use money that he does not currently posses. The most common types of loans that the average person will encounter where he acts as the borrower include mortgages, car loans, student loans, and credit cards. In most cases these interest rates are expressed in ...
• 02.27.09
  Annual Percentage Yield (APY) Banking | (0)

  Annual percentage yield (APY) can be seen as an accounts true interest rate. It is the percentage that indicates the true return of an interest rate over the course of a year when the benefits of compounding are considered. Most financial institutions that want their nominal interest rates to look higher will state the annual percentage yield for their account rather than the nominal interest rate, or Annual Percentage Rate (APR). There is a rather straight forward equation used to calculate the annual percentage yield for an account. The equation is seen below: The variables in this equation represent ...

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• Dividends
• Savings Account
• Interest Rate
• Annual Percentage Yield (APY)