Last month, the SEC released a report on financial literacy in the United States. Sadly, it found that "American investors lack essential knowledge of the most rudimentary financial concepts." Here are some of the alarming things that the study discovered.
Structured securities products are bonds backed by stocks that allow investors to hedge their risks using options. In theory, this complex sounding setup can provide predictable returns and protection from volatile markets. There's only one catch: SSPs are often a bad idea for most investors.
In these tough times, why would anyone pass up money for nothing? Inquiring minds at FINRA want to know -- because many of us are. According to research by Aon Hewitt, nearly 30% of 401(k) participants are not contributing enough to scoop up their full employer match.
Bank of America will soon finalize an $8.5 billion agreement to settle investor claims that Countrywide sold them lousy mortgage-backed securities before the housing bust. Meanwhile, private regulator FINRA is angling to take over the watchdog role for registered investment advisers.
If you need cash and have investments you don't want to sell, a stock-based loan may sound like a good idea. But the unregulated stock-based loan industry can be a risky way to tap into the value of your portfolio, warns the Financial Industry Regulatory Authority.