How To Invest

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How Does the Dow Jones Industrial Average Work?

The most famous stock market barometer is the Dow Jones Industrial Average (DJIA). When someone asks how the market is doing, most investors quote the DJIA [more…]

How Do the Nasdaq Stock Indexes Work?

Nasdaq indexes are similar to other stock indexes in style and structure. The only difference is that, well, Nasdaq indexes cover companies traded on the Nasdaq. The Nasdaq has two indexes [more…]

How Does Standard & Poor’s 500 Index Work?

The Standard & Poor’s 500 (S&P 500) tracks the 500 largest (measured by market value) publicly traded companies. The publishing firm Standard & Poor’s created this index. [more…]

Stock Market Indexes beyond the Most Recognizable Names

In addition to the Dow Jones Industrial Average, Nasdaq, and Standard & Poor’s 500, there are other indexes you can use to track the market. They include the Russell indexes, the Wilshire 5000, Morgan [more…]

How to Invest Based on Stock Market Indexes

With investments based on indexes, you can invest in the general market or a particular industry. Say that you want to invest in the Dow Jones Industrial Average [more…]

How the New York Stock Exchange Works


How the American Stock Exchange Works

The American Stock Exchange (Amex) lists roughly 1,350 securities and has a daily trading volume of about 83 million shares. Amex lists stocks that are smaller in size than those on the NYSE yet still [more…]

How the Nasdaq Works

The Nasdaq, which lists over 3,200 securities and trades about 2 billion shares a day, is a uniquely electronic exchange and the fastest growing stock market today. [more…]

How Regional Stock Exchanges Work

Stock exchanges that focus on listing stocks of corporations from specific geographic regions of the country are called regional exchanges. In the United States, the four major regional exchanges are Boston [more…]

How Do Electronic Communications Networks Relate to Stock Trading?

Electronic communications network (ECN) is a developing system of electronic stock trading. The SEC reports that about 30 percent of the total share volume in NASDAQ-listed securities and 40 percent of [more…]

Investing in Stocks with Basic Knowledge of Economics

Stocks represent ownership in companies, and stock markets are the places where stocks are bought and sold. Those places may be made of bricks and mortar, like the New York Stock Exchange, or they may [more…]

How to Read a Stock Table

You can use stock tables to select promising investment opportunities and to monitor your stocks’ performance. The stock tables in major business publications, such as [more…]

How to Choose Growth Stocks

A stock is considered a growth stock when it’s growing faster and higher than stocks of other companies with similar sales and earnings figures. Usually, you compare the growth of a company with growth [more…]

How to Sharpen Your Stock Investment Skills

Investors who analyze a company can better judge the value of the stock and profit from buying and selling it. Your greatest asset in stock investing is knowledge [more…]

How to Weigh Investment Risk against Return

How much risk is appropriate for you, and how do you handle it? Before you try to figure out what risks accompany your investment choices, analyze yourself. Here are some points to keep in mind when weighing [more…]

Free or Low-Cost Investing Resources Available through Stock Exchanges

Before you invest in stocks, you need to be completely familiar with the basics of stock investing. At its most fundamental, stock investing is about using your money to buy a piece of a company that will [more…]

Stock Investing for Your Personal Style

Your investing style isn’t a blue-jeans-versus-three-piece-suit debate. It refers to your approach to stock investing. Do you want to be conservative or aggressive? Would you rather be the tortoise or [more…]

Why Annual Reports Are Important to You

An annual report can give you a lot of important information about a company. When you’re a regular stockholder, the company sends you its annual report. If you’re not already a stockholder, contact the [more…]

Investing in Small Cap Stocks for Growth and Return

Small cap (or small capitalization) is a reference to a company’s market size. Small cap stocks are stocks from companies that have market capitalization [more…]

Investing to Bring In Monthly Income

Investing for income means investing in stocks that will provide you with regular money payments (dividends). Income stocks may not offer stellar growth, but they’re good for a steady infusion of money [more…]

How to Calculate the Yield of Your Income Stock Investment

The main thing to look for in choosing income stocks is yield: the percentage rate of return paid on a stock in the form of dividends. Looking at a stock’s dividend yield is the quickest way to find out [more…]

How to Calculate the Payout Ratio of your Stock Investment

The payout ratio is simply a way to figure out what percentage of the company’s earnings are being paid out in the form of dividends. People concerned about the safety of their dividend income should regularly [more…]

Why a Company’s Bond Rating Is Important

A company’s bond rating offers insight into the organization’s financial strength. Bonds get rated for quality for the same reasons that consumer agencies rate products such as cars or toasters — to gauge [more…]

Income Stocks to Consider: Utilities and Real Estate Investment Trusts

Income stocks tend to be in established industries with established cash flows and less emphasis on financing or creating new products and services. When you’re ready to start your search for a great income [more…]

How to Invest in Stock in a Bull Market

Being fully invested in stocks at the beginning of a bull market makes for spectacular success. But doing so takes some courage. Then again, who says you have to get the whole enchilada? You can begin [more…]

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