Yield is a general term that relates to the return on the capital you invest in a bond. Price and yield are inversely related: As the price of a bond goes up, its yield goes down, and vice versa.
What's New in Investor Education
- August 11, 2022
- August 9, 2022FINRA is issuing this investor alert to help investors better understand smart beta products.
- August 4, 2022While FINRA will never ask you for money, there are scammers who might try to convince you otherwise. These financial fraudsters are posing as regulators, requesting fees to transfer funds or offering bogus investment “guarantees” that will serve only to separate you from your savings.
- August 2, 2022Investing in real estate can be a good way to diversify your assets. But if you don’t want the responsibilities that come with ownership, real estate investment trusts (REITS) and other products can provide exposure to real estate without requiring you to actually buy or sell property.
- July 18, 2022On many measures of financial capability, U.S. adults generally fared better in 2021 than in the decade leading up to the pandemic, according to the FINRA Investor Education Foundation’s National Financial Capability Study. However, the research also shows that Americans’ financial well-being remains uneven across different demographic groups.
- July 15, 2022Sometimes called longevity insurance, deferred income annuities (DIAs) often are purchased as an alternative to a pension by those seeking a set amount of guaranteed income in their later years. These products are typically sold by investment professionals or insurance agents. DIAs should not be confused with deferred fixed income annuities.
- July 14, 2022When it comes to retirement savings, even the most adventurous seniors may consider something routinely described as "plain vanilla": a fixed immediate annuity. With an immediate annuity, the investor pays an insurance company a lump sum in exchange for regular income payments. Both fixed and variable immediate annuities deliver income quickly, but there are differences.
- June 24, 2022Some companies and recruiters use online job sites and video technologies as a convenient and cost-effective way to communicate with applicants. Unfortunately, fraudsters are using them too, and they aren’t looking to offer you a job. Whether you are participating in an online job interview or have already been offered a position, there are some red flags that may signal a scam.
- June 15, 2022A diversified portfolio tends to be harder to achieve than simply following the mantra to avoid putting all of your investment eggs in one basket. This basic strategy can help, but it is often not enough to avoid concentration risk—the risk of amplified losses that may occur from having a large portion of your holdings in a particular investment, asset class or market segment relative to your overall portfolio. Learn more about concentration risk and read tips on how to manage it.
- May 24, 2022Volatile markets can inspire feelings of fear and anxiety among investors. When the stock market gets rocky, focusing on your overall financial picture, combined with sound planning, can pay dividends. These five steps can help steady your pulse during market spikes and elevate your financial security.
- May 24, 2022When thinking about investing, one consideration is whether to invest funds all at once or over a period of time. If you choose the latter route, you might be opting for an investment strategy called dollar-cost averaging, in which you invest your money in equal portions, at regular intervals, regardless of the ups and downs in the market.
- April 21, 2022When investing in your 401(k) or other retirement savings account, target-date funds, also known as life-cycle funds, are one popular option. You pick a fund that is dated around when you plan to retire, and that fund promises to rebalance as you approach that date.
- April 18, 2022In recognition of Financial Literacy Month, FINRA is highlighting five steps you can take to boost financial capability—both your own and that of others you care about. Whether you’re looking to build your own base of financial knowledge or are seeking ways to help others, FINRA and the FINRA Investor Education Foundation offer many resources to support you and your loved ones along your financial journey.
- April 8, 2022When you invest in stocks of publicly traded companies, something comes with the package—corporate actions, which may affect a company’s stock and, therefore, its shareholders. Here are six common types of corporate actions and how they might impact your investments.
- April 6, 2022The ways in which people communicate have changed with advancements in technology, and so have the tactics of “cold calling” boiler rooms. Today’s boiler rooms go beyond the telephone to contact potential investors, including pitching through messaging apps and social media. Regardless of the method of contact, the scammer’s goal and many of the red flags are the same.
- April 4, 2022There are a lot of ways to gain exposure to precious metals such as silver, gold, palladium and platinum. But investing in the physical metal can carry a lot of allure for some investors. It can also come with a lot of risks.
- March 17, 2022Every year, millions of seniors become victims of financial exploitation, resulting in billions of dollars in personal losses. Protection of senior investors is a top priority for the Financial Industry Regulatory Authority (FINRA) and is the focus of several rules intended to thwart financial exploitation.
- December 10, 2021Syndicated conservation easements (SCETs), which are a common type of charitable conservation contribution, top the 2021 “Dirty Dozen” list of tax scams published by the Internal Revenue Service (IRS) in July.
- December 3, 2021Execution venues such as alternative trading systems (ATSs), single-dealer platforms (SDPs) and wholesalers have risen in popularity in recent years. In this piece, FINRA staff provide an overview of these venues and explain how they differ from traditional exchanges.
- October 4, 2021As nations across the globe celebrate World Investor Week 2021, U.S. regulators share tips for Main Street investors, including what to know about ESG investing, digital assets, day trading and SPACS, plus how to spot and avoid broker imposter scams.
- September 13, 2021As many of us spend more and more time online, cyber criminals continue to lurk in the background, devising plans to steal your personal information. These seven tips can help you better secure your financial accounts and deter cybercriminals from accessing your personal financial information.
- August 30, 2021SPAC "units" often consist of shares and warrants — or a fraction of a warrant. The terms of these warrants can vary greatly. Be sure you understand the terms of the specific warrants you are considering as well as the risks associated with the offering.
- July 27, 2021While impersonation scams are not new, surprising new variants arise every day. Regulators have observed an increase in cyber-related incidents, including fraudsters creating fake websites using the names and professional details of actual industry professionals (who have no connection to the imposter sites).
- June 25, 2021When it comes to financial products that offer diversification, investors have no shortage of choices. Unit investment trusts are just one of those options.
- May 27, 2021Did you receive an unexpected check in the mail and think, “Great! Free money?” Not so fast. Cashing that unexpected “windfall” may result in losses, reveal your personal financial information to scammers, or both.