
Short selling involves selling a stock you don’t actually own in order to profit from a decline in price. So when you short a stock, you want the value to drop. [more…]
Value stocks and growth stocks react differently in an uncertain economy, and so it’s important to know the difference between them. Here’s how value and growth investors look at the value of stocks: [more…]
As an investor, you have a variety of options to choose from, including stocks and bonds. The investment you select depends on your financial goals, your investment preferences, and your tolerance for [more…]
An index is a statistical measure that represents the value of a batch of stocks. Investors use this measure like a barometer to track the overall progress of the market [more…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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…]
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 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…]
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…]
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…]