Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

Investing

Credit Spread Duration: Estimating Bond Price Sensitivity

Credit spread duration estimates how much a bond or bond portfolio's price may change when its credit spread changes, assuming the underlying Treasury curve is otherwise unchanged.

Finelo Team
Financial Literacy

CPI vs PCE Inflation: Key Differences in Measurement

CPI and PCE are two different price indexes that measure inflation; CPI is the Consumer Price Index calculated monthly by the Bureau of Labor Statistics, while PCE is a separate price index commonly discussed alongside CPI (it’s introduced with CPI and PPI in education material) CPI calculated monthly by the BLS and PCE as an alternate price index.

Finelo Team
Financial Literacy

Covered vs Noncovered Cost Basis: Broker Reporting Rules

Covered cost basis means your broker reports the purchase price (and selected cost‑basis method) of those shares to the IRS; noncovered cost basis means the broker does not report that purchase data to the IRS and you remain responsible for supplying accurate basis when you sell Vanguard.

Finelo Team
Financial Literacy

Cost Basis vs Market Value: Tax and Portfolio Differences

Cost basis is the historical amount you paid for an asset (total or per unit); market value is the asset’s current quoted price multiplied by the units you hold.

Finelo Team
Financial Literacy

Cost Basis of Inherited Stock: Step-Up Rules & Examples

For inherited stock, “cost basis” usually means the value used to compute gain or loss when you later sell the shares — commonly reset (or “stepped up”) to the security’s fair market value (FMV) at the decedent’s date of death.

Finelo Team
Financial Literacy

Cost Basis of Gifted Stock: Carryover and Dual-Basis Rules

When someone gives you stock, your cost basis generally equals the donor’s original cost basis for determining gains; however, if the stock’s fair market value (FMV) at the gift date is lower than the donor’s basis, special “dual-basis” rules apply and can change how losses are measured on a later sale.

Finelo Team
Financial Literacy

Consumer Confidence Reports: What They Measure & Why Markets Watch

What a Consumer Confidence Report Measures

Finelo Team
Trading

Cash Available to Trade vs Settled Cash: Rules & Examples

What Trading Cash vs Settled Cash Means Cash available to trade (sometimes shown as "buying power" in cash accounts) is the cash balance your broker will permit you to use for immediate purchases.

Finelo Team
Trading

Call vs Put Options: Rights, Payoffs & Risk Compared

A call option gives its holder the right to buy the underlying asset (or the value of that asset for index options); a put option gives its holder the right to sell the underlying asset see FINRA.

Finelo Team
Financial Literacy

Best Investing Books for Beginners: A Practical Reading Framework

There’s no single “best” investing book for every beginner. The right choice teaches core principles—goal-setting, risk and diversification, costs and taxes, and a repeatable strategy—while matching your time horizon and learning style.

Finelo Team
Investing

Investing Apps for Beginners: How to Compare Features, Fees & Risk

What Beginners Should Evaluate in an Investing App

Finelo Team
Financial Literacy

Adjusted Cost Basis: Formula, Examples & Tax-Lot Adjustments

Adjusted cost basis is the original cost you paid for an asset modified for later events that change its tax or accounting basis — for example, reinvested dividends that increase the amount you effectively spent.

Finelo Team