Posts tagged "investing"

How is capital gains tax worked out on shares you sell?Capital gains tax is charged on the profit when you sell shares for more than you paid. How long you held them decides the rate. Here's how the gain is calculated, why one year matters, and how losses help.October 20, 2026

What's the difference between stocks and bonds?A stock makes you a part-owner of a company. A bond makes you its lender. That one difference decides who gets paid first, how much you can gain, and how much risk you carry.October 20, 2026

What is a REIT, and how can you invest in property without buying a house?A REIT is a company that owns or finances income-producing property and trades on a stock exchange like any other share. Buying one gives you property income without being a landlord. Here's how they work.October 20, 2026

What is an index fund, and is it a good first investment?An index fund holds every investment in a market index, like the S&P 500, to match the market's return at a very low cost. Here's how they work, why low fees matter so much, and their limits.October 20, 2026

What is compound interest, and why does starting early matter so much?Compound interest is growth on top of growth - your returns earn returns of their own. Because time is the exponent, a few extra years matter more than almost anything else. Here's the maths, the Rule of 72, and a worked example.October 20, 2026

What is diversification, and how diversified do you need to be?Diversification means spreading your money across investments that don't all move together, so one failure can't sink you. It cuts risk without cutting expected return - but it can't protect you from a market-wide crash.October 20, 2026

Why do bond prices fall when interest rates rise?A bond pays fixed amounts, so when new bonds start paying more, an existing bond's price has to fall until it offers a competitive return. Here's the reasoning, a worked example, and why long bonds move most.October 20, 2026

Why is it so hard to sell a losing investment?Losses feel roughly twice as painful as equal gains feel good, so selling a loser makes the loss feel real. That's why investors hold losers too long and sell winners too early. Here's how it works and how to spot it.October 20, 2026