Bases Point is the amount of change in the hundredth of a number that has moving during a period of time.

For example, let’s say a stock started at 1.00% for the day and at the end of the day when the stock market close. The stock ended at 1.50%.

Someone could say that the stock move up 50 bases point for the day reference that it’s the hundredth of the number that change.
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This term is usually used when talking about interest rate and financial lingo.

IRA stands for Investment Retirement Account that you can use to save money for your retirement.

IRA are saving account like a 401k investment that you use from your saving to invest in the stock market to get gain capital on your money.

They are tax free until you cashed out after the age of 59 and half. If your take your money out before the requirement age. You will be penalize by 10% for the early withdraw.

The risk with an IRA account for the long term is that the percent of tax may be higher when withdrawing money. The opportunities may be that it also can be lower, but that depends on the interest rate set during the period of time set.

Some of the option you look to open investment account for an IRA account is:
• TD Ameritrade
• Charles Schwab
• Vanguard

You should always do your own independent research before decided which companies you want to open IRA account. They are others firm that also provide IRA accounts in the market.

A money market account is a bank account that you can store your money like a saving accounts. 

The difference between money market account and saving is that bank used money market account for short term loan.

Since the bank is using the money to give out short term loan. You get a higher interest rate than you do with a saving account.

You can always access your money like you do with a saving account.

Money market are not money market funds, which, can lose you money.
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They are FDIC insured so there is protection of your money in case of economic crisis.

REITs are Real Estate Investment Trust that you can invest in to make capital gains.

They are companies that operate in the real estate business to make a profit. 
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Companies in REITs own commercial real estate like office buildings, apartments, and shopping center, etc.

REITs are traded on major stock exchange as ETF and function as a mutual.
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Investing in these companies puts you in the real estate business without being a realtor and another way diversify your portfolio.

​A dividend is money paid on a schedule basis by the company to its shareholder out of its earning made.

How to get a dividend is to have shares of stock of the company.

The process of how dividends get distribute start with the Board of Director deciding to issue dividends to its stockholder.

1. First Board of Director declare a date that they intend to issue the dividend.
2. After they record the amount of current shareholders will get a dividend.
3. Finally they have a payment date to issue dividends.

A reason why a company might issue a dividend is because they have excess cash that does not need to be reinvested into the company for operation expansion or to start a new project

​A Mutual Fund is a investment program where a manager selects stocks, indexes, commodities, and currency that try to make money for their shareholders.

Some manager that run their mutual fund try to beat the market while other try to make a safe return on shareholders money.

According to The Statistics Portal; there is 9,356 mutual fund active in the Unites States.

Investing in a mutual fund helps diversify your portfolio by having a professional handle investments that they have experience in that you might not have in or need to spend time research in that company industry.

There are some risk in investments in mutual fund. For example, the manager might over trade in their account. Making commission fee high and shrinking your account balance. Also there are hidden fee that you might not be aware unless you investigate where cost are going. 

Some website to research are:

• Morningstar
• Lipper Leaders
• MAXfunds

When looking into rating on mutual funds from website. Some that have good rating from past performance doesn't mean that they will perform well in the future since rating are from what they have already done in stock markets. You will want to look at mutual fund that have potential to become a high rating mutual fund. 

An index fund is an investment fund that attempts to replicate the performance of a given index of stocks or some other investment type.

An index fund does not pick and choose its investments, but instead holds all of the stocks or bonds on an index.

It amounts to a person or a committee of people sitting down and coming up with a list of rules as to how to construct a portfolio of individual holdings because, in the end, the only thing you can actually do is invest in individual common stocks or bonds, presuming we're limiting our discussion to equity and fixed income markets.

Since an index fund owns all of the investments in the index, there is no picking winners and losers.