The Gordon Growth Model, Explained: How One Formula Values a Dividend Stock
A dividend stock is worth next year's dividend divided by required return minus growth — the Gordon Growth Model, plus the two-stage fix.
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Portfolio Management
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How Fund Managers Get Paid: The 2-and-20 Model, Hurdle Rates, and High-Water Marks
2-and-20 means a 2% management fee plus 20% of profits — but hard vs. soft hurdles and high-water marks decide what you actually keep.
Securities Lending, Explained: How Your Broker Lends Your Shares to Short Sellers and Splits the Fee
Your broker can lend your fully paid shares to short sellers and split the fee — but lent shares lose SIPC cover, voting rights, and qualified-dividend rates.
Street Name vs. Direct Registration (DRS), Explained: How Your Broker Holds Your Shares
Street name puts Cede & Co. on the company register; DRS puts your name there. How each works, what transfers cost, and which fits your holdings.
TVPI, DPI, and RVPI, Explained: The Three Money Multiples That Grade a Private Fund
TVPI always equals DPI plus RVPI: cash returned plus paper value over paid-in capital — but no multiple shows timing, so pair it with IRR.
Bond Ratings, Explained: How S&P, Moody's, and Fitch Grade Default Risk
BBB- (S&P/Fitch) or Baa3 (Moody's) is the lowest investment-grade bond rating — fall below it and forced selling reprices your bonds.
The Capital Asset Pricing Model (CAPM), Explained: How Beta Turns Market Risk Into an Expected Return
CAPM sets your required return at the risk-free rate plus beta times the equity risk premium — three inputs that tell you what any risky asset must earn.
REITs, Explained: How Real Estate Investment Trusts Turn Rent Into Dividends
REITs must pay out 90% of taxable income to keep their tax status — so yields run high, dividends face ordinary rates, and Section 199A deducts 20%.
ETFs vs. Mutual Funds: Which Wrapper Fits Your Taxable Account?
In taxable accounts, ETFs dodge the capital gains distributions mutual funds must pay — but inside a 401(k) the wrapper barely matters.
Investment Policy Statement, Explained: How to Write Your One-Page Investing Contract
An investment policy statement puts your goals, allocation, rebalancing and review rules on one page, so panic cannot rewrite your plan mid-drawdown.
Dividend Yield vs. Payout Ratio: What Each Formula Tells You, Why a Soaring Yield Can Signal a Cut, and Where Special Dividends Fit
Yield is dividends over price; payout ratio is dividends over earnings. A soaring yield with coverage above 100% usually means the price fell ahead of a cut.
Rebalancing, Explained: How Calendar Schedules and Tolerance Bands Keep Your Portfolio on Target
Rebalancing restores your target allocation — check annually, trade only past a 5-point band, and steer new cash first to avoid taxes.