Defining a Leveraged ETF and ETN A leveraged ETF is designed to mirror an index such as the S&P 500, but the fund uses financial derivatives and debt to amplify the returns of that underlying index. The funds aim to keep a constant amount of leverage during the investment time frame, typically a 2–3x ratio. In other words, a leveraged 2x ETF will maintain a $2 exposure to the index for every $1 of investor capital, in hopes of getting twice the return of investors in the underlying index....

You can find a firm’s balance sheet in its yearly Form 10-K filing, which also known as an “annual report.” Every public company must file this document with the U.S. Securities and Exchange Commission (SEC). The balance sheet contains details about the organization’s capital structure, liquidity, and viability. It is divided into three parts. These parts include assets, liabilities, and equity. Subtract liabilities from assets, and you arrive at shareholder equity....

Banks and other financial institutions will be able to issue crypto cards through Mastercard, with the Bakkt platform performing the transactions. In addition to using the cards for purchases, cardholders can earn rewards in crypto instead of points. The Bakkt platform will also have digital wallets, where people can buy, sell, and hold cryptocurrencies. Cryptocurrency credit and debit cards from companies like Gemini, Uphold, and BitPay already exist, but on a much smaller scale....

The IRS said last month that it was sending letters to more than 9 million individuals and families who have not yet filed an income tax return but are eligible for several important tax credits they missed out on in 2021. Some of these may be worth thousands of dollars. They include the child tax credit (temporarily expanded to up to $3,600 per eligible child in 2021); the recovery rebate credit (worth as much as $1,400 per person); the earned income tax credit (as much as $6,728 depending on your family situation....

There are some ways you can make the process easier. Below, we’ll dive deeper into how student loans may impact your mortgage application, the income barriers you might face, and the mortgage programs available for student loan borrowers. Income Barriers for Students Seeking a Mortgage When you apply for a mortgage, lenders will consider your debt-to-income (DTI) ratio, which is all your monthly debt payments divided by your gross monthly income....

The returns include 2020 returns requiring corrections to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit and Additional Child Tax Credit. Although this work doesn’t require contact with the tax filer, it does mean special handling by an IRS employee, so it could take up to 120 days to finish, the IRS warned. If corrections are made, the IRS will send the taxpayer an explanation....

Eight times as many foreclosures were initiated in January compared with December—32,900 vs. 4,100—mortgage data company Black Knight said Thursday. It was the most in two years, but still about 23% fewer than the 42,800 foreclosures that were started in January 2020, right before the pandemic hit. The surge came after certain government safeguards protecting homeowners from foreclosure expired at the end of December. Those safeguards required banks to take extra steps to help homeowners avoid foreclosure before starting any foreclosure proceedings....

This group of current assets includes prepaid expenses. Other current asset accounts include cash and equivalents, accounts receivable, and inventory. Prepaid Expenses In the course of daily operation, many firms set aside money for goods or services before receiving them. It’s like they are pre-paying. These include items like employee labor, which the company records into a prepaid salaries account until it cuts pay checks. These may be pooled together and listed on the balance sheet under one “prepaid expenses” heading....

Learn how the principal-agent relationship could affect your business. What Is a Principal-Agent Relationship? The principal-agent relationship is a relationship that arises from situations in which one entity (the principal) has power over another (the agent). The agent is acting in the place of the principal for specific or general purposes. In doing so, the agent is expected to carry out the principal’s wishes. The principal is the party who authorizes the other to act in their place, and the agent is the person who has the authority to act on behalf of the principal....

Since private equity investments have a longer time horizon than typical stock investors, private equity can be used to fund new technologies, make acquisitions, or strengthen a balance sheet and provide more working capital. Private equity investors hope to beat the market in the long run by selling their ownership at a great profit either through an initial public offering or to a large public company. If all of a public company is bought, it results in a delisting of that company on the stock exchange....

Manufacturers and Sellers If your company manufactures or sells a product, your firm could be the subject of a product liability claim. It means that someone could file a claim against you alleging that a product you made or sold is defective, causing injury to that party or damaging his or her property. For example, suppose that you own Chic Chairs, a company that manufactures ergonomic chairs. Your company was recently sued by a customer named Chuck....

What Is a Transfer on Death Account? TOD accounts can be set up for investment accounts, including mutual funds and stocks and bonds held in a brokerage account. Some states also recognize TOD deeds to transfer property ownership outside of probate. To receive the investments after the account holder passes away, the beneficiaries of a TOD account will need to provide the investment company with an original death certificate for the owner....

Independent contractors are sometimes called ICs, consultants, freelancers, free agents, or contractors. Regardless of the label, all are essentially the same in practice, including a self-employed designation when it comes to U.S. tax purposes. That’s because the Internal Revenue Service (IRS) has only two distinctions: an independent contractor or an employee. Being an independent contractor has its advantages over being an employee. However, there are drawbacks to being an independent contractor as well....

Reagan’s position was dramatically different from the status quo. Prior presidents including Lyndon Johnson and Richard Nixon had expanded the government’s role. Reagan pledged to make cuts in four areas: What was Reaganomics? Reaganomics was based on the Laffer Curve. Economist Arthur Laffer developed it in 1974. The curve showed how tax cuts could stimulate the economy to the point where the tax base expanded. Tax cuts reduce the level of federal taxation immediately....

Real GDP Compared to Nominal GDP When you hear reports of a country’s GDP that don’t specify the type of GDP, it is likely to be nominal GDP. Nominal GDP includes both prices and growth, while real GDP is pure growth. It’s what nominal GDP would have been if there were no price changes from the base year. As a result, the nominal GDP is higher. The U.S. Bureau of Economic Analysis reports both real and nominal GDP....

You might consider investing using a time segmentation strategy: Purchase bonds or CDs that will mature in different years, so you will be able to count on a certain amount of income becoming available each year. If you can handle the risk, purchase stocks that may generate bigger returns over the longer term. When you buy or sell an investment, a transaction fee may be charged. If you consolidate accounts, you should make fewer total sales and purchases over time, which would result in lower total transaction fees....

States differ on their exact components of remuneration when it comes to calculating taxes and workers’ compensation insurance premiums. Small business owners should consult their state’s revenue and labor departments for guidance. What Is Remuneration? Remuneration consists of the monetary and non-financial forms of compensation provided by an employer. In addition to the regular pay—in hourly wages or annual salary—it consists of commissions, bonuses (including those paid in stock), and overtime, holiday, vacation, and sick pay....

This is because flipping an entire house involves many processes and techniques that even the most seasoned real estate industry professionals may not understand. With the right resources and retail material, learning the ins and outs of renovating a home can be made easier. The Reader’s Digest Handyman Repair Book, for example, explains the kind of tools to buy and gives detailed instructions on a variety of repairs. This includes learning how to unclog a sink, replace a receptacle, patch up a hole in the wall, and even frame a closet....

In the United States, the Federal Reserve Board of Governors controls the reserve requirement for member banks. The bank can hold the reserve either as cash in its vault or as a deposit at its local Federal Reserve bank. The reserve requirement applies to commercial banks, savings banks, savings and loan associations, and credit unions. It also pertains to U.S. branches and agencies of foreign banks, Edge Act corporations, and agreement corporations....

Find out more about how much notice to give and review sample resignation notice letters to learn what to include in your own letter. What to Include in a Resignation Notice Your resignation notice should include the date for your last day of work and a polite thank you for any and all opportunities you have had working for the company. When you resign, you do not have to reveal your future plans, although you can share details if you’d like....