Who Determines When a Recession Begins and Ends?

Recession compass

An organization called the National Bureau of Economic Research (NBER) is responsible for determining when recessions begin and end in the US. More specifically, a committee within the NBER called the Business Cycle Dating Committee is a group of experts who determine the starts and ends of recessions. How is … [Read more…]

VOO vs. VTI: Which ETF Is a Better Investment?

Exchange traded fund concept

Passive investing in index funds is more popular than ever. There is a good reason for this. Research shows that passively managed index funds provide higher returns than over 90% of active professional fund managers. However, there are thousands of funds and hundreds of companies making them. Not all of … [Read more…]

What’s The Difference Between Revenue and Income?

Revenue growth concept

The difference between revenue and income can be confusing, especially since the terms are often wrongly used interchangeably. For a company, revenue is the total amount of money received from customers for the sales of products and services. However, income is what remains after you subtract all costs, expenses, and … [Read more…]

What Does a Negative PE Ratio Mean for Stocks?

PE ratio concept

The price-to-earnings (PE) ratio is the most commonly used ratio to determine if a stock is cheap or expensive relative to its earnings. It tells you how many dollars you must pay for each dollar of annual earnings. Generally speaking, a high PE ratio indicates that a stock is expensive, … [Read more…]

How Often Do Stocks Pay Dividends? And When?

Collecting dividend payments in a jar

Dividends are one of the best things about investing. You get paid regularly simply for owning stocks, which you can use to buy even more stocks so that your wealth grows over time. Some investors also like to use their dividends for passive income, especially after they retire. How often … [Read more…]