Online Investing: Some Mechanical Problems with the IRR

Online Investing Now that you understand the basic logic of the IRR tool, you should know that the IRR, for all of its usefulness, isn’t flawless. Quicken (and every other investment record-keeper’s computer program) calculates a daily IRR and then multiplies this percentage by the number of days in a year to get an equivalent annual IRR. Continue reading

Online investing: Describing Bond Purchases

Online Investing Whenever you buy additional bonds, you need to record the purchase and any accrued interest, so you actually record two transactions. As with stocks and mutual funds, you can record bond purchases directly into the register or by using an investment form. Because the investment form approach is easier, it’s the one we’ll describe here. Continue reading

Online investing: Writing Calls and Puts

online bankingA call is an option to buy a share of stock. A put is an option to sell a share of stock. You may write, buy, or exercise calls and puts. When you write a call or put, what you really do is collect money from someone in return for promising the person the option, or chance, to buy or sell a share of stock at a specified, or strike, price by some future date. Continue reading