Archive for Buying Stocks

Securities - How To Succeed In The Stock Market?

It is the very trait of the securities markets to move backward and forward from one end to the other depending on the popular frame of mind and in such times, those who can part reason from sentiment can mark opening.
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Stock Investment - Seeking For A Successful Stock Broker

You must be cautious and exercise due diligence, while selecting a share broker. Remember that you are the customer and apart from making the decisions, you need to keep checking on the activities of your stockbroker.stock investment,become a stockbroker,stock broker career
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Stock Market Investing

It’s certainly tough to answers questions about stock market than the usual Hollywood, Bollywood stuff. Stock market carries all gestures- happy, sad, creepy, tensed and what not? To cut short it is a risk cell, where thousands of people invests to fetch better returns but some succeed and some console themselves to try again.
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Stock Market - Six Secrets Of Successful Stock Market Investing

Here’s your chance to find out about how to be successful at stock market investing. If, like many, you’re stuck in a dead-end job, you may be wondering about ways that you can make some extra money. Or, you may have come into an inheritance and wondered what the best way to invest it is. Although there are “traditional” routes for you to take, such as property and high-yield savings accounts, one of the more profitable ways to invest is through the stock market
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Stock Market - Benefits Of Investing In The Stock Market

Investing has become increasingly important over the years, as the future of social security benefits and for other countries, their respective government programs which supports up and coming retiring people.
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Stock Market - All You Need To Know About Stock Investing For The Beginner

What is the secret to being successful at stock investing as a beginner? Nearly everybody has heard stories about people making millions overnight using the stock market. In reality, there are many myths about investing in stocks. It is not always straightforward, sometimes even professional investors need to rely on a hunch. Stock investing can be, however, very rewarding and a lot of fun if you’re prepared to take the time to learn about stock market investing.
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Stock Market - Why Stock Market Prices Rise And Fall

Have you ever wondered what make the stock market rise and fall? If you watch the news at all, you will have seen the stock market levels mentioned. You have probably also noticed that the prices rise and fall each day. Why stock market prices rise and fall is a complex question with a complex answer.
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Stock Market - Stock Trader

Have you ever heard the story of ‘Tortoise and Rabbit’? Yes, that’s the same principal to be followed in the stock market. Being fast in the starting takes you to nowhere because it takes time to understand any of the stock trading knowledge. The stocks world is the most unreliable and speculative world.
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iShares and Exchange-Traded-Funds

Barclay’s Global Investors pioneered the exchange-traded fund (ETF) business with its iShares brand. iShares is a security fund that tracks a bond or a market index and is listed on the American Stock Exchange (AMEX), and the New York Stock Exchange (NYSE), and the Toronto Stock Exchange (TSX) in North America, and on other European and Asian stock exchanges.

iShares, and other ETFs such as Standard & Poor’s Depository Receipts (SPDRs), are directly linked to the indices they track. ETFs are security certificates of ownership on the index, sector, bond, or commodity they are modeled to represent. These baskets are held by a custodial financial institution for safekeeping and double-checking for accuracy, who then return the ETF shares to the middleman, known as a market maker or specialist. Baskets are large chunks of stock – anywhere from 10,000 to 50,000 shares. This market specialist can then sell the representative ETF shares to investors. Investors then can openly buy and sell the ETF shares on the market. If an investor were to acquire enough iShares to represent a complete iShares basket of the S&P 500 index, for example, that basket could be redeemed for all 500 companies in the S&P 500.

All of these ETF transactions are tracked through the Depository Trust Clearing Corporation, just like all other stocks are. ETF shares are directly tied to their underlying asset value, so it’s quite simple to determine if the ETF share is undervalued or selling at a premium. With the creation of these kinds of securities, investors now have the option to trade a security with fund-like qualities with all the features of stock trading like short selling, limit orders, stop-loss orders, and margin buying. This is impossible or meaningless with a mutual fund. Also, the ETFs can be traded throughout the trading day and not only at the end of the day as is the case with mutual funds.

ETFs are easily traded but are complicated in their structure.  Here is an excellent video from Nick Perry of Schaeffer’s Investment Research.


Dividend Reinvestment Plans, or “DRIPS”

Dividend Reinvestment Plans (DRPs), more commonly known as DRIPS, are offered as a method for shareholders to buy stock directly from the company. These plans also offer the option of dividend reinvestment, hence the name. Sometimes reinvesting dividends are required for participating.

Advantages of DRPs include the small level investment required to participate in the program. Usually, only minimum stock ownership (1 share) qualifies. Another advantage is putting the dividends towards further investment. Dividends are far more valuable when they are reinvested. Some companies offer DRPs that allow the investor to purchase stock at a discount price of 1 to 10 percent below the market price. Investing in stocks in this manner encourages the stockholder to hold on to the stock and to regularly contribute towards the investment. Many DRPs even offer stock purchasing through debit accounts.

DRPs can be managed by the company itself, by a transfer agent, or by a brokerage. Company run DRPs usually have the lowest minimum requirement for stock ownership. These are completely maintained within the corporation. Transfer agents have stepped in to manage DRPs to provide a cost-effective way for corporations to offer a DRP. Oftentimes, transfer agents can manage DRPs at a much lower cost than the corporation. Brokerage-run DRPs sometimes offer dividend reinvestment plans at no cost for companies that do not have a formal DRP. However, these plans do not offer optional cash purchases similar to the company offered plans.

The great advantage to Dividend Reinvestment Plans is the minimal requirements for participation. DRPs offer an excellent option to investors with little to invest as a way to stock ownership. The plans encourage holding onto the equity so the stock has time to grow in value over a long period of time.