There are three main types of investment companies, including open-end funds, closed-end funds, and the Unit Investment Trust (UIT). A mutual fund is legally termed as an “open-end” company. In the most basic sense, a mutual fund company pools money from different investors, and it invests the money in bonds, stocks, short-term money markets, and other types of securities. The combined holdings in the mutual fund are known as the portfolio. Each investor represents an interest in this portfolio, and he or she can derive appropriate income from the funds it generates.

Some of the distinguishing features of mutual fund include:

Investors buy shares from the fund itself rather than from other investors in the secondary market (NASDAQ Stock Market, New York Stock Exchange, etc.)

The amount that the investor pays for the fund shares is the actual per share net value (NAV) plus the shareholder fees, which the fund company may charge at the time of purchase.

Shares can be “redeemable”. This means that investors can sell their mutual fund shares back to the fund or to the fund’s broker.

Generally, mutual funds create new shares to accommodate new aspiring investors. In short, they sell shares on a continual basis, except in the case when the funds become too large.

Mutual fund investment portfolios are managed by entities referred to as “investment advisers”. These investment advisers are registered with the Securities and Exchange Commission.

It is important to tackle hedge funds as well. Hedge funds are usually mistaken as mutual funds, but it is important to remember that hedge funds are not subject to legal regulations that pertain to mutual funds. Hedge funds are unregistered and private investment pools that are usually limited to wealthy and sophisticated investors.

When Saddam Hussein was ousted in 2003, there were a lot of speculations about the Iraqi currency. A lot of political, social, and economic changes have occurred since then, but what will this mean to an investor like you? The new Iraqi monetary system encourages foreign investments; in fact, the central bank is giving out licenses so foreign businessmen can open businesses legally. Of course, what most investors are counting on is the potential of Iraqi oil. Iraq is one of the biggest oil producers in the world, second only to Saudi Arabia.

These characteristics make the Iraqi dinar seem like an attractive investment on the surface. However, it is important to remember that whenever a country undergoes government changes, the new government can repudiate the old money; your investment can become essentially worthless. Another risk is that the new Iraqi government has the capability to inflate the dinar out of circulation. Finally, there is no guarantee that you will recover your investments on the dinar, even if the country does stabilize.

Investing in the Iraqi dinar seems like a good investment opportunity, but in actuality, purchasing this currency right now can be likened to buying a lottery ticket. Yes, there is a potential that the Iraqi government will stabilize eventually and the economy might improve. But as things stand right now, the risks are simply too high.

So, is buying Iraqi dinars a good investment option? Well, if you don’t know what to do with a bunch of money, there is little harm in buying a few Iraqi dinars. Right now, around 824 American dollars will buy you about a million’s worth of dinars. But if you don’t feel like buying a lottery ticket right now, better not buy Iraqi dinars as well.

Sometimes, the best way to stop a snowballing debt problem is to go back to its cause. If you have an uncontrollable credit card debt, then take a step back, and look into your previous mistakes. Knowing what your weaknesses are can help you prevent debt disasters in the future. Most of the time, people who are mired in debt commit the same financial mistakes that can be prevented by behavioral changes and self-discipline. Learn from your mistakes and start getting rid of your debts.

Mistake #1: Mishandling Balance Transfers

Transferring your balance from high-interest credit cards to those with lower interest rates is effective in theory. But it’s a good idea that can go wrong. Transferring the balance to a new card that has an introductory rate and waived annual fees can help you save money, but you need to focus on paying off your debts before the introductory offering expires. If not, you can wind up with an even bigger debt than before.

Mistake #2: Not Looking into Your Credit Report

Consumers assume that there is no need to look into their credit reports since they can’t do anything to change them anyway. This is a huge mistake because the report can contain errors and inaccuracies that can improve your credit rating. When these inaccuracies are detected, you will be able to enjoy better interest rates and even bag the job you want.

Mistake #3: Not Alerting Creditors of Your Financial Difficulties

People who are in debt don’t want to face their creditors. But don’t wait until the problem spirals out of control before doing something about it. Realize that the best time to negotiate with them is before the debt situations start to spiral downhill. The creditors might be willing to extend your deadline or temporarily lower the interest rate.

We all have heard it is smart to invest in the stock market. The problem is so few of us actually know much about it. That is why I decided to write this to tell you how to spend the extra $100 you wrestled from the couch cushions this month.

First off, I want to prove my opening statement. From the early 1900’s to today the market has averaged a 13% annual increase. Similar statistics show the dollar bill has lost 95% of its spending power. To put that into different terms: In 1919 one share of Coca-Cola cost $40. If you decided to take $40 and bury it in the yard, the spending power of that cash would be $2. Instead if you took that cash and bought one share of Coca-Cola, today it would be worth over $5 million, if you reinvested the dividends. Hmmm…tough decision.

With that out of the way, onto the application. Some people buy shares of certain stocks because their online broker requires them to. Example: you want to invest in Amazon and it is trading at $74.15 a share. You have $100 to invest. Your company will only allow you to buy a whole share costing $74.15 plus a $9.99 fee. That leaves you with $15.86 left over doing nothing for you. In time you will build up enough extra cash this way to buy another whole stock…in time.

The problem with this is that you are not investing to your full potential when you buy whole shares of stock. In an ideal world you could buy “fractional” stocks. Example: that same $100 would buy you 1.213 shares of Amazon. That extra .213 of a share is working for you and not rotting away in an account somewhere. Obviously, this is the best way.

Sharebuilder.com is the only online trading company I know of that will allow you to buy fractional stocks. On top of that, if you set up an automatic investing plan, trades are only $4 opposed to the standard $9.99! Finally, a company that cares about us.

Stop reading this right now. Go and set up an account. Invest a dollar amount, NOT a set number of whole shares each month. GO!!

Lately, you’ve had some problems in getting your bills paid on time, and you now are wondering what you can do to improve your credit score. Well, you’ve certainly got plenty of company because it is estimated that around 30 million Americans suffer from credit problems that are bad enough to make applications for credit cards and other types of loans difficult to get approved.

On the other hand, your credit score might look alright but there are some fast and easy tips that can  make it look a lot better. Below are some effective credit repair tips:

Pay off your credit card debts – paying off your installment loans, like student loans, mortgages, and auto loans can improve your score. However, you will enjoy an even more significant improvement when you pay off revolving loans such as credit cards. Getting the outstanding balance to at least 30% below the credit limit is recommended.

Use credit cards lightly – high balances can hurt your credit score even if you do manage to pay your bills in full every month. The credit information that usually is reported to the credit bureaus is the balance on the last statement.

Check the limits – your score may look depressed if the lender “reports” a lower limit than what you actually have. For example, Capital One and American Express don’t report their client’s credit limit so the bureaus assume that your highest balance is your credit limit. The downside to this is that if you charge the same amount on your card every month, it will appear that you always are maxing out your credit.

Ask for some goodwill – if you have been a relatively good client, the lender might agree to erase some late payments from your history. You need to put this request in writing before “goodwill adjustment” can be considered. A long-term solution to this is asking them to “re-age” your account, especially if your credit history is badly damaged.

Dispute any errors – your score is calculated based on the information provided in the credit report. It may contain some errors that damage your score; if you see any inaccuracies with regards to charge-offs, late payments, “unpaid accounts” that were included in your bankruptcy, or any other negative items, be sure to report it to the credit bureau. You just might be able to get a significantly higher credit score because of this.