May 2010

The effects of dividends on decreasing volatility

Posted by on May 5, 2010 in Dividends

Dividend signaling is the concept that a company that pays dividends is signaling to the market that management is optimistic about its prospects. The theory being, quite simply, that a company would not continue to maintain or increase a dividend unless it knew the immediate future was bright; the act of returning cash to investors [...]

A mutual fund fee that works?

Posted by on May 4, 2010 in Investment Information

Redemption fees are charged by mutual funds when an investor withdrawals/sells too early.  The justification for redemption fees has typically been to discourage investors from buying and selling mutual funds like stocks and to view mutual funds as long term investments. As an added benefit, redemption fees may increase the performance of mutual funds. Research [...]