EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Federal Housing Administration (FHA)?
The Federal Housing Administration (FHA) is to lenders what FDIC insurance is to savers; it protects lending institutions from mortgage defaults.
By protecting lenders, the FHA was begun with the intention to stimulate the housing market. The FHA was established in 1934 in an effort to stimulate the construction and purchase of new homes by offering insurance protection to the institutions (banks and mortgage companies) who make mortgage loans.
With the added protection, lending institutions are more likely to loan money to more clients. This has a downside, of course: by shifting risk to the FHA, the bank can avoid having to answer for some loans that it perhaps knew were not wise to approve.
Defaults on mortgage payments are a large part of what eventually caused the meltdown of 2008, since too many pools of mortgages were given high credit ratings and large financial institutions became overweight in them for their high yields.
The FHA is not really to blame, of course, and it has done much more good than harm.
What is naked shorting?
Naked shorting means that the seller has not located or secured the security being short sold, and is in many cases illegal
What is Weighted Average?
A weighted average can be applied to many calculations, and it multiplies numbers in the average by a factor
Will My Spouse and Children Receive Social Security Benefits if I Die?
Spouses and children can and do receive social security benefits upon the death of a person who paid into the system
What is a Cash Flow Statement?
A statement of cash flows is an accounting report which describes the changes in cash flows, which is distinct from N.I.
What is Profit Margin?
Profit margin is a profitability ratio that measures, as a percentage, how much a company keeps per sale
What is a Bond Ladder?
A bond ladder is a portfolio of bonds that have different maturities, that may range from months to years in difference
What is a Reverse Mortgage?
In a reverse mortgage, instead of paying to for your home, you’re getting paid for your home. It is considered a loan
What is a Dividend?
A dividend is an income-like payment to an investor who holds stock. Dividends tend to be paid by companies who are...
What are the basics of technical analysis?
Technical analysis is more popular than ever, because not only can we see and share this information more quickly, but we ca even automate our trades
What is the Ascending Triangle (Bullish) Pattern?
The Ascending Triangle pattern forms when a currency pair price tests a resistance level and creates a horizontal top line