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Naked put selling is equivalent to covered call writing in terms of where and how profits and losses are incurred. But it can be advantageous in terms of cost savings and potential reward. Talk to an investor who is involved in a covered call writing program about his doing some...

The term “yield” is thrown about often by the financial press and others. The trouble is that yield has many different meanings and implications for investors. This article will try and sort out some of the major differences. It will not, however, attempt to present mathematically...

The goal of many individual investors is to beat the market. A large number, however, don’t—particularly when the costs of trying to do so are considered. One alternative is to apply the old adage, “If you can’t beat ’em, join ’em.” The index fund concept allows investors...

If you pay too much for a stock, your return on investment won’t be satisfactory. In the AAII world of Shadow Stocks—companies with some history of growth, little or no dividend yield and a small amount of the stock outstanding owned by institutions—you hope to profit mainly...

Companies distribute cash dividends to their shareholders at the discretion of the board of directors. The board of directors examines the business prospects, cash generation and cash needs to determine if they can afford to make a distribution of profit in the form of a cash dividend...

Performance statistics are probably the single most scrutinized feature of any stock mutual fund. These figures are, of course, important indicators of how well a portfolio manager has performed in the past. As such, they can serve as useful flags of a possibly good manager or a...

Feature Article » The Individual Investor’s Guide to the Top Mutual Funds 2018 by AAII Staff Our annual mutual fund guide provides information and performance statistics on nearly 1,600 funds on AAII.com.   Departments » Briefly Noted Current news items of interest...

Experience is that marvelous thing that enables you to recognize a mistake … when you make it again. —Franklin P. Jones It is not that easy to talk about one’s mistakes. In the early days of Tocqueville Asset Management, I suggested that the senior partners jointly write...

Bondholders can be hurt by a number of circumstances: the issuer may decide to redeem the bonds before the maturity date, the issuer may default or interest rates may fluctuate and reduce the overall return of the bonds to the investor. The first two risks, call risk and default...

In mutual fund investing there are no immutable laws to guide us, as we have in physics. But then again, it’s not professional wrestling either. Some of what follows distills the collective experience of mutual fund investing; some of it has empirical evidence pointing its...