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The cost basis for stocks and mutual funds is generally the price you paid when you purchased the asset, plus any other trading costs. However, there are several methods to calculate cost basis ...
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
One notable component of the expense ratio of U.S. funds is the "12b-1 fee", which represents expenses used for advertising and promotion of the fund. 12b-1 fees are paid by the fund out of mutual fund assets and are generally limited to a maximum of 1.00% per year (.75% distribution and .25% shareholder servicing) under FINRA Rules.
Some kinds of funds (e.g., cash funds) cost a lot less to run than others (e.g., diversified equity funds), but a good fund should do better – after fees – than any cash fund over the longer term. In general it seems that there is, at best, a positive correlation between the fees charged by a fund and the returns it provides to investors. [3]
Value stock. Growth stock. Trade at a discount relative to company assets. Expensive. May pay dividends. Don't usually pay dividends. Undervalued or reasonable valued
Money market accounts (MMAs) Money market funds (MMFs) Provider. Banks and credit unions. Investment firms and brokers. Insurance. FDIC or NCUA up to $250,000
Formal methods to calculate the Return on investment (ROI) have been widely understood and used for a long time, but there was no easy and widely known way to provide a formal justification for decisions based on intangible values, which can include the reputation of an organization, the wellbeing of staff, or the impact on society or the ...
This approach involves building a balanced portfolio with a brokerage or investment account, an exchange or a trusted financial advisor that includes a mix of stocks, bonds, index funds, mutual ...