Our Products

Common Stock

The terms stock and share both refer to a fractional ownership interest in a corporation. As owners, stock holders vote for the company's Board of Director, and receive information on the firm's activities and business results. Stockholders may share in current profits through dividends declared by the firm's Board.

When a corporation business is first organized, investors contribute money to fund the enterprise, and in return receive shares of stock representing their ownership in the company. If the business is successful, it will grow and have increasing profits, and the shares generally become more valuable. If the business is not successful, the value of the shares usually declines.

Bonds

While stocks represent ownership in a business, bonds are debt. Issued by institutions such as the federal government, corporations, and state and local governments, a bond is evidence of money borrowed by the bond issuer. I return, bondholders receive interest and, at maturity, the principal amount of the bond.

When first issued, a bond will have a specified rate of return or yield. If a bond is traded on a public exchange, the market price will fluctuate, generally with changes in interest rates. Later investors will receive a yield that may be more, or less, depending on the price paid for the bond in the open market.

Bonds are typically bought by investor seeking current income. In some instances, bonds are also used for capital growth. Like stocks, the market price of bonds will fluctuate up and down. If an investor sells a bond before it matures, a capital gain or loss may result. Unless the issuer defaults, bonds held to maturity will recover the principal amount. Since a bond pays a fixed return, inflation risk can be a problem; over time the dollars received will buy less and less. Also, the interest income received may be subject to current income taxation.

Preferred Stock

Preferred stock is a hybrid, mixing characteristics of both common stock and bonds. The term "preferred" comes from its status within the financial structure of the firm. A company which has issued both common and preferred stock generally must first pay a dividend to the preferred stockholders before it can pay a dividend to the common stockholders. Unlike the variable dividend of common stock, preferred stock typically has a fixed dividend amount.

If a company gets into serious financial trouble, and is forced to sell its assets to pay creditor, there may not be enough money to pay all bills, and also return something to the stockholders. Preferred stock holders have priority over common stockholders in liquidation.

Index Funds

An index fund is a type of mutual fund, exchange-traded fund, or unit investment trust whose primary investment objective is to mimic the performance of a specified market index. To achieve this, an index fund will hold all (or a representative sample) of the securities in the chosen index, in the same proportions as those securities making up the index. Without the need for expenses such as investment research and the costs of buying and selling, index funds typically have lower management costs.

Exchange Traded Funds

An exchange traded fund is a more modern version of an index fund with additional benefits. One of the biggest benefits of an exchange traded fund is intraday pricing. Shares can be bought and sold through a brokerage firm at the current market price any time the exchange is open.

Most ETFs use an indexing approach. Some ETFs are designed to track a certain market index, such as the S&P 500. Other ETFs follow market segments (for example mid-cap stocks), individual countries, selected industries, or even commodities such as gold or oil.

Limited Partnerships

A limited partnership is a form of business partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs). The general partners have management control and share in the profits of the firm in predefined proportions. In addition, the general partners are subject to joint and several liability with regard to the debts of the partnership.

Limited partners have a role similar to that of shareholders in a corporation. Typically, limited partners share in the profits of the firm in a predetermined fashion, but have no management authority and are generally only liable for debts incurred by the partnership to the extent of their investment. Common limited partnership programs include real estate (residential, commercial, and raw land), oil and gas, equipment leasing, and participating mortgage pools.

Real Estate Investment Trusts

Many individuals are attracted to the benefits of investing in real estate, such as current income or the potential for capital gain. Direct investment in real estate, however, can require large amounts of capital, as well as the time and expertise to properly manage real estate properties. One alternative to direct real estate investment is the real estate investment trust (REIT). REITs allow small investors to share in both the risks and rewards of real estate investing.

Full-time managers conduct the day-to-day operations of a REIT. If a REIT is successful, shareholders can receive dividend income (from rental income and mortgage interest) and capital gains from the profitable sale of real estate assets. Some REITs specialized in a single type of commercial property or region of the country. Other REITs diversify their investments over various types of property or in different geographical areas.

Venture Capital

Venture Capital is at the very core of capitalism; investing into a unique idea with the hopes of higher returns. This type of investment is typically structured as a start-up company, private investments or other non-traditional and unregistered investment. Venture Capital involves a high amount of risk and requires an investor to be accredited.