Investment and Finance

As of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses.EE Bonds are reliable, low-risk government-backed savings products that you can use toward financing education, supplemental retirement income, birthday and graduation gifts, and other special events. Series EE Bonds purchased on or after May 1, 2005, earn a fixed rate of return, letting you know what the bonds are worth at all times. EE Bonds purchased between May 1997 and April 30, 2005, are based on 5-year Treasury security yields and earn a variable market-based rate of return.

Yes. You can check risk ratings and portfolio allocations in Morningstar Mutual Funds at http://www.morningstar.com

You are limited to a $15,000 annual purchase of EE bonds. You buy an EE bond for half of its face value. Foe example a $100 face baond would cost $50. EE bonds can be exchanged for HH bonds.

The maximum amount of I bonds an individual may buy each year is $10,000 in electronic bonds and $5,000 in paper I bonds. Federal I bonds cannot be exchanged for Federal HH bonds like Federal EE bonds can be.

Federal EE and I bonds earn interest for 30 years. The interest rate is reset every 6 months for each bond. You do not have to report the interest earned as income on your tax return until you cash the bond in or it reached its final maturity, whichever comes first.

Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted.
Warrants are rights to purchase securities at a specified time at a specified price.

Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted. Warrants are rights to purchase securities at a specified time at a specified price.

American Depositary Receipts ( ADRs ) are U.S. dollar denominated receipts representing shares of foreign based corporations. ADR's are issued by U.S. banks or trust companies and entitle the holder to all dividends and capital gains that are paid out of underlying foreign assets.

Derivative instruments are financial contracts whose value is based on an underlying security, a currency exchange rate, an interest rate or a market index. Many types of instruments representing a wide range of potential risks and rewards are derivatives, including futures contracts, options on futures contracts, and forward currency contracts.