Understanding Investing

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A Mandatory Reading List for Stock Investors

Before you buy stock in a company, you need to do a little light — or not-so-light — reading. Investing in stock without checking out the company beforehand is a recipe for disaster. So before you plunk [more…]

Internet Resources for Stock Investing

With the tools available on the Internet, you have no excuse for not researching any and every potential stock investment. The following list of resources links you to some of the best financial websites [more…]

Eight Stock Investment Opportunities and Challenges

Stock investing doesn't happen in a vacuum; it operates in a world swirling with issues and events that affect your stocks and stock investing decisions. Fortunately, it can still be profitable if you [more…]

How to Minimize Your Risk by Diversifying Your Stock Investments

Diversification is a strategy for reducing stock risk by spreading your money across different investments. It’s a fancy way of saying, “Don’t put all your eggs in one basket.” But how do you go about [more…]

How to Weigh Risk and Return in Stock Investments

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

An Introduction to Exchange-Traded Funds and Mutual Funds

For many folks and for many years, the only choice besides investing directly in stocks was to invest indirectly through mutual funds. Now, with the advent of ETFs, investors have greater choices than [more…]

An Introduction to Bullish ETFs for Stock Investment

You may wake up one day and say “I think that the stock market will do very well going forward from today” and that’s just fine if you think so. Maybe your research on the general economy, financial outlook [more…]

How Market Capitalization Affects Stock Value

You can determine a company’s value (and thus the value of its stock) in many ways. The most basic way is to look at the company’s market value, also known as market capitalization [more…]

How to Start Investing: List Assets According to Liquidity

In investing, liquidity refers to how quickly you can convert a particular asset into cash. If you know the liquidity of your assets, including investments, you have some options when you need cash. [more…]

How to Start Investing: List Your Liabilities

In financial and investing circles, liabilities are simply the bills that you’re obligated to pay, whether it’s a credit card bill or a mortgage payment. If you don’t keep track of your liabilities, you [more…]

How to Start Investing: Calculate and Analyze Your Net Worth

Your net worth is an indication of your total wealth. You can calculate your net worth with this basic equation: total assets, including investments, less total liabilities equal net worth [more…]

How to Fund Your Stock Investment Program

If you’re going to invest money in stocks, the first thing you need is . . . money! Where can you get that money? The challenge comes down to how to fund your stock program. [more…]

How to Define Your Financial Goals for Investment

Consider stocks as tools for living, just like any other investment — no more, no less. Stocks are among the many tools you use to accomplish something — to achieve a goal. Yes, successfully investing [more…]

How to Invest for the Short Term

When it comes to investing in stocks, short termgenerally means one year or less, although some people extend the period to two years or less. Short-term investing isn’t about making a quick buck on your [more…]

How to Invest for the Intermediate Term

Intermediate term refers to the financial goals you plan to reach in two to five years through your investing. For example, if you want to accumulate funds to put money down for investment in real estate [more…]

How to Invest in Stocks for the Long Term

Stock investing is best suited for making money over a long period of time. Usually, when you measure stocks against other investments in terms of five to [more…]

How to Invest in Stocks for Steady Income

Not all investors want to take on the risk that comes with making a killing through stocks. (Hey . . . no guts, no glory!) Some people just want to invest in the stock market as a means of providing a [more…]

How to Invest Based on 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…]

Introduction to Financial Risk in Stock Investments

The financial risk of stock investing is that you can lose your money if the company whose stock you purchase loses money or goes belly up. This type of risk is the most obvious because companies do go [more…]

Introduction to Interest Rate Risk in Stock Investments

You can lose money in an apparently sound stock investment because of something that sounds as harmless as “interest rates have changed.” Interest rate risk may sound like an odd type of risk, but in fact [more…]

Threats of Interest Rate Risk in Stock Investments

Historically, rising interest rates have had an adverse effect on stock prices and investments. Because the United States country is top-heavy in debt, rising interest rates are an obvious risk that threatens [more…]

Introduction to Market Risk in Stock Investments

When they talk about investing in stocks, people talk about the market and how it goes up or down, making it sound like a monolithic entity instead of what it really is — a group of millions of individuals [more…]

An Introduction to Inflation Risk in Stock Investments

Inflation can be a risk that stock investors have to deal with. Inflation is the artificial expansion of the quantity of money so that too much money is used in exchange for goods and services. To consumers [more…]

An Introduction to Political and Governmental Risk in Stock Investments

Government rules and regulations are important considerations when making investment decisions. If companies were fish, politics and government policies [more…]

An Introduction to Personal Risks in Stock Investments

Frequently, the risk involved with investing in the stock market isn’t directly related to the investment; rather, the risk is associated with the investor’s circumstances. [more…]


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