| Stock Market Basics Explained |
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Stock Splits Explained |
Understanding the stock market starts with a basic understanding stocks. A stock represents partial ownership of a company – the smallest share possible. Company's issues stocks to raise capital and investors who buy stock are actually buying a portion of the company. Ownership, even a small share, gives investors rights to a say in how the company is run and a share in the profits (if any). While stocks give owners certain rights, they do not carry obligation in case the company defaults or faces a lawsuit. In a worst-case scenario the stock will become worthless but that is the limit to the investor's liability. Read More
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One of the alluring myths that surrounds the stock market is the prospect that a certain stock may split, giving stock holders twice as many shares as before. What is poorly understood by the outsider, though, is that although the investor has more stock after a sock split, the value of each share is reduced. For example, if a corporation decides to split its stock 2-for-1, it issues one new share for each outstanding one. At the same time, the value of each share is cut in half. So the stock holders now hold twice as many shares but the total value is the same as before the split. A stock split is like receiving 2 five-dollar bills for a single ten-dollar bill. Same value – twice as much paper. Read More |
Learn About Stock Trading Strategies
There are two basic ways to trade the stock market – shooting in the barrel or using effective stock trading strategies to determine which stocks to buy, when to sell, and how to protect your investment dollars. Needless to say, strategies outperform barrel shooting by a large margin. There are, however, hundreds of stock market trading strategies to choose from. Of all of these, there are a couple of tried and trued methods that have worked well for investors over many years. The newbie investor is advised to investigate some of these basic strategies and see for himself how they perform. New stock trading strategies can be explored once the basic ones are well-understood. Read More
Information On Stock Trading Systems
By following a stock trading system, market condition will at times be favourable to buy and at other times be favourable to sell. Clearly defined conditions give signals that the educated investor can read and act on. Signals are not as crucial for the long term investor. For these people, market conditions and the value of particular companies can be watched on a daily basis. For day-traders, however, signals are crucial for acting quickly on stock market movements. Read More
Stock Market Indexes Explained Stock indexes are a statistical average of a particular stock exchange or sector. Indexes are composed of stocks which have something in common – they are all part of the same exchange; they are part of the same industry; or they represent companies of a certain size or location. Read More |
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Stocks Vs Bonds
Whereas stocks give investors part ownership of a company, bonds are loans made by investors to corporations or governments. Rather than benefiting from company profits the way that stock holders do, bond holders receive a fixed rate of return – a percentage of the bond's original offering price. The return is called the 'coupon rate'. Bonds have a maturity date at which time the principal amount is returned. Bonds can be issued for any period of time – some take up to 30 years to mature. Read More
Stocks Vs Mutual Funds
A mutual fund is a diverse holding of stocks that are managed on behalf of the investors that buy into the fund. A mutual fund allows an investor to take advantage of a diversified portfolio without having to invest a large sum of money.
What is the advantage of a diversified portfolio? It offers protection against rapid market losses of any one particular stock. If a portfolio is spread across 20 stocks, if any one of those stocks quickly loses value the effect is less than if the portfolio consisted of that one stock by itself. Read More |
Stock Market Prices
In glancing through the stock market prices listed in the newspaper one might wonder how stocks are priced and what affects price movement. After all, there is a wide variety of prices and some well-known companies are traded for relatively low prices while obscure listings may sell at high prices. Read More |
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| Introduction To Penny Stocks |
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| Penny stocks are low-priced stocks – usually with a value of less than $5 – of small companies. These stocks are traded on the Over-The-Counter-Bulletin-Board (OTCBB) and the Pink Sheets. Both these trading venues do not have the same kind of minimum requirements of exchanges such as Nasdaq or the NYSE set by the Securities and Exchange Commission. Companies which issue penny stocks may be new businesses or close to bankruptcy. A new issue of stocks could be a way to inject quick capital to try to save the business. Read More |
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What Stock Brokers Do ?
Stock Brokers handle most of the buying and selling on the stock market, and the average investor will use a brokerage service to handle his trades. There is a broad range of brokerage services available. There are brokers who offer many services for aiding their clients meet their investment goals. These 'full-service brokers' can give advice about which stocks to buy and sell and often have full research facilities for analyzing market trends and predicting movements. Read More
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| Trading Stocks Online - Good For Investors? |
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| As active traders we interact with Wall Street on a regular basis, so we've become accustomed to the ever-changing personalities of the stock market. As challenging as online stock trading may be sometimes, we're fortunate to know the "real" Street - that gritty pavement zone where the rubber meets the road. Read More |
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| Nine Simple Rules for Trading Stocks Online |
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It's much easier to make money trading stocks when you know the rules
Here are nine simple rules for online trading success. Read More |
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Top Ten Tips for Successful Online Stock Trading
Despite what you may hear, making money trading stocks doesn't have to be hard.
When it comes to trading stocks online, it's not about how hard you work. It's about knowing exactly what to do, and putting that knowledge to work.
Here are ten simple rules for online trading success ... Read More |
The Battle of the Exit Strategies
Scaling Out vs. All or None
Simple concepts usually work best in trading - especially when it comes to Exits. However, keeping it simple doesn't exclude Exit plans with several features - so long as each aspect is designed to accomplish a goal. Read More
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