Compound Interest and the rule of 72

The rule of 72 is a quick and accurate tool to predict how fast your will double in a given amount of time with a select interest. By dividing 72 by the annual interest rate you will get your answer. For example if you have $1,000 in the bank and you have 6% interest. 72 divided by 6 is 12. That means it will take 12 years for your money to double. Albert Einstein was originator behind this method. It is very valuable when you are managing money.

Compound interest is interest which is calculated not initial but during the a accumulated period of times. Money you earn yearly through interest. Is accumulated when the interest is added yearly.

Insider Trading Scandal - What Happened?

On March 1, a group of current and former employees of U.S. top banks were charged for insider trading. They are accused of using leaked information and even blackmailing to make millions of dollars on the stock market. The case involved 13 people from four major Wall Street investment banks (UBS, Morgan Stanley, Bank of America and Bear Stearns). All the men were arrested and four pleaded guilty. They are estimated to have gained $8 million through insider trading. Insider trading is illegal because it give a unfair advantage to those who have money in the stock market. Insider trading allows you know if stock is going to drop or rise before the public does.