Hyperinflation

Q What’s hyperinflation? — G.R., Norfolk, Virginia

A Americans are used to ordinary inflation, with our prices tending to rise by around 3 percent annually, on average (though we’ve had double-digit increases in some years). Hyperinflation is much more extreme, defined as monthly inflation topping 50 percent for at least consecutive days. With hyperinflation, prices can double in a few days — or hours. About a decade ago, Zimbabwe experienced the chaos of hyperinflation, with prices doubling in the time it might take you to read this column. Imagine, for example, a loaf of bread costing $10,000 one day — and then costing $1 million a month later.

Q Is online stock trading safe? How does it work? — N.C., Syracuse, New York

A Trading online via a reputable brokerage is safe, as it will have security measures in place. It’s convenient and generally inexpensive, too, with many brokerages charging $7 or less per trade. Begin at the website of the brokerage you’re interested in, where you can probably fill out an application online or download and print account-opening forms. (If you have questions, there will be a phone number or chat box you can use.) Fill out and submit the application form along with payment to fund the account. (You can probably transfer funds electronically from your bank, if you want.) Once you have an account number and have set up a password, you can log in at the website. From there you can check the status of your portfolio and account or place an order whenever you want. Before opening an account, read up on various brokerages at their websites or call and ask about them. Choose one that will serve you best. Learn more at