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Watt's New:
The SEC is proposing changes to the circuit breaker system that halts stock market trading if prices drop suddenly and dramatically, as they did in the "flash crash" of 2010.
Among the most significant changes being proposed: reducing the triggering plunge from 10% to 7%, resetting the trigger level daily rather than quarterly, and switching the reference index from the DJIA to the S&P 500.
Since the current rules were adopted in 1988, the breaker has been triggered just once, in 1997.
Read more here.
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Word of the Day:
Cooling-off period
In the financial industry, a cooling-off period applies when a new issue is being brought to market. During this time, also known as the quiet period, investment bankers and underwriters aren't permitted to discuss the issue with the public.
In the consumer world, during a cooling-off period, you can cancel your obligation to purchase a product or take a loan without penalty if you change your mind.
Different kinds of transactions are governed by different cooling-off rules. For example, one federal rule allows you to cancel home improvement loans and second mortgages within three days of signing.
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Taking Diversification to the
Next Level
Most investors understand the value of diversification to help manage risk and return in their investment portfolios. But diversification isn't only about types of investments, especially when it comes to retirement investments. It's also about types of accounts.
Among the key reasons for diversification when it comes to retirement investment portfolios is to minimize what you'll pay in taxes, and to preserve the benefits of tax-deferred investments.
Learn more.
| Financial Wit & Wisdom |
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New at Lightbulb:
Dictionary App
The Lightbulb Dictionary of Financial Terms — over 1,200 investing and personal finance terms — is now available on iTunes.
Each term in this valuable reference is explained in everyday language, in a meaningful context. The Dictionary is used extensively by financial professionals and individual investors alike.
Download the app, and the free preview version, on iTunes. Also available for Android devices.
Custom versions of the Dictionary are available for licensing and sponsorship.
Call us at 212-485-8800 or email info@lightbulbpress.com.
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