Investing Questions and Answers

What does statutory reserves mean?




Answers: In the business of insurance, statutory reserves are those liabilities an insurance company is legally required to maintain on its balance sheet with respect to the un-matured obligations (i.e., expected future claims) of the company

What is the best approach for a 22 year matured to draw from started investing beside little money?

I have somewhat more than five hundred to get me started, and am really doing this for the long permanent status goals. I'm not sure if buying bonds would be the best item, and if so, what type of bonds should I buy. I have really be wanting to do this, just necessitate some correct advice from adjectives angles to give me something to give attention to about. I really hold no inside knowledge of the stock open market other than what I see on CNN. Please Help!


Answers: you should sympathetic an IRA account if you don't already enjoy one.

does your company offer a 401K or any stock purchases.

have money deducted from your check recurrently saves on your taxes and make it easier to build a nest egg.

don't put all your money within one type of investment. it's safer.
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Who buys shares of the VIX and why?

Aren't they betting on volatility? What exactly are they investing in by buying VIX shares?


Answers: <<<Who buys shares of the VIX and why?>>>

VIX is an index, not a stock. You cannot buy shares of an index. You can buy futures and option on the futures.

Essentailly the only explanation for buying VIX futures (or call options) is because you believe you will form a profit when the index rises. Since the index tends to rise most surrounded by uncertain times and when the stock souk is falling, some people buy futures (or hail as options) to hedge a long stock portfolio.

<<<Aren't they betting on volatility?>>>

Yes, not the volatility that the stocks hold had contained by the past, but the volatility expected surrounded by the future, call "implied volatility" by options traders.

<<<What exactly are they investing contained by by buying VIX shares?>>>

For information on exactly how the VIX index value is calculated, and more, see the links at

http://www.cboe.com/micro/vix/introducti...

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