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Understanding Exchange traded funds (ETFs)

An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. Shareholders do not directly own or have any direct claim to the underlying investments in the fund, but they do own these assets indirectly. ETF shareholders are entitled to a proportion of the profits, such as earned interest or dividends paid, and they may get a residual value in case the fund is liquidated. The ownership of the fund can be easily bought, sold or transferred in much the same way as shares of stock. An ETF is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike Mutual Funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes through the day as they are bought and sold and typically have higher daily liquidity and lower fees than mutual fund shares. By owning an ETF, investors get the diversifica…

understanding what dividends are

You can separate the layman, investor and fund manager from how they describe their investments. The layman will refer to their holdings as “stocks”, the investor “shares”, and the fund manager “equities”.
If you are unsure what dividends are, this post will be a light introductory read to get you up to speed.
I will briefly talk about investing for dividends, and focus on what I really want to talk about in the next post which is franking credits.
Dividends are cash payments from companies to its shareholders. I believe there are multiple resourcesavailable on this topic is so I will just mention the important stuff.
All dividends come from companies, but not all companies pay dividends.
Payments from profit from companies to shareholders are known as dividends, whilst the term distribution applies to payments from trusts to unit-holders.
A dividend paying company is like an egg-laying chicken.
Suppose you have a chicken and it lays eggs every once in a while. It is akin to how an id…

All you need to know about a budget

Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
Budgeting is simply balancing your expenses with your income. If they don't balance and you spend
more than you make, you will have a problem. Many people don't realize that they spend more
than they earn and slowly sink deeper into debt every year.
If you don't have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you.
Why is Budgeting so Important?
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of d…

Dropshipping as a profitable business venture.

When starting an online business, one of the key elements is having products to sell. So how do you get products, where do you find them, how do you know if they’ll sell, and how do you get them to customers?
In the vast world of internet entrepreneurship, there are many answers to all of those questions. You could create your own products—but that can be a long and time-consuming process. Or you could buy in bulk from a manufacturer and then ship out products to your customers as they buy. 
But that is an expensive solution, and you have to take the risk of investing that money in buying stock, storing inventory, and not having sales, which can be particularly troublesome if you're dealing with perishable goods to trendy items.
There is a solution that allows you to sidestep all those hassles. And it makes the whole startup process for your online venture that much easier. It’s called dropshipping. And it has taken the online business world by storm. A dropshopping business is one…

How to start a business you know nothing about and Succeed

Are you a first time entrepreneur with a new creative idea? If YES, here is a complete guide on how to start a business that you know nothing about and succeed.
If you have ever taken your time to study most of the successful business people around you, you would realize that a large chunk of them are involved in businesses that they aren’t trained in school to do. Being successful as an entrepreneur and an investor is all about leveraging on opportunities when you come across them.
It is a fact that it is good to have at least basic knowledge about any business that you want to go into, but at the same time, you can also start a business you know nothing about. All you need to do to get started is to look out for a profitable business, and then get all the information that can aid you to get started.
The essence of this article is to help you break free from the mindset that you can only start and successfully run a business that you are properly trained to do. There are several tool…

40 Entrepreneurs That Built Successful Family Businesses

Do you want to start a family dynasty? If YES, here are 40 entrepreneurs that built successful family businesses that outlived them plus lessons you can learn from them.
The joy of any entrepreneur is to build a successful business, hand over the business to his or her family members and after retirement look back to see the business grow in leaps and bounds. If as an entrepreneur, you can get your family members to buy into your business vision, and get them committed to it through hard work, you would realize that you have been able to build a successful business.
Without a shadow of doubt, building a successful family business doesn’t happen overnight. It takes years of team work, dedication, commitment to a common goal and unbreakable unity. If your desire is to build a successful family business, there are examples of great people that have walked this street before, and have been able to build solid and successful family businesses that you can learn from. Below are our top 20 E…

How to get a business partner for your Startup

Are you in the process of starting a business? Do you need an injection of capital into your business? Are you looking for a business partner with money for your startup company? If YES, then i advice you read on.
It is often said that good things come in twos and even the Bible said that “Two is better than one, because when one is down; the other will help him up.” The business world is filled with stories of successful partnerships at both the individual and corporate level. Take a look at some of the most successful companies in the world and you will see they started out as partnerships. Examples of such companies include Youtube, Facebook, MySpace, Apple, etc.
Now for those who don’t know what partnership is, here is a brief definition of what a business partnership is. A partnership is an agreement between two or more persons to finance and control a business. Partnerships are virtually easy to establish; however time should be invested in establishing the partnership agreement…