Why are stock splits good news for investors? Stock splits lower the price of a company’s stock making the stock more affordable for small investors. This often attracts new investors with this new lower price per-share. Stock splits provide an important motivation to purchase stock at the new lower price. When the stock is cheaper…
This article is for potential stock investors who want to gain a basic and fundamental understanding about trading in stock options. Stock options trading can offer some advantages over purchasing stocks and holding on to them for the long term. Purchasing stock options is a bold strategy that has the potential of providing large gains…
What Is An Income Statement? The income statement is an essential financial report that will inform the investor of a company’s revenues and expenses. This financial statement, is one of the three primary statements that should be studied before purchasing stock in a company. (The other two statements are the balance sheet and the statement…
Are you in good financial shape? The following are important questions you should ask yourself! Do You Have a “Saver” Mentality or a “Spender” Mentality? Are you setting aside a certain % of your income each month for savings and investing? And, preferably, this should be before you pay any of your bills! Pay yourself…
An investor in stocks should know the differences between growth and value investing! The two investing styles use totally different business measures to evaluate and buy stocks. The Growth Investor: The growth investor is mainly concerned with the company’s earnings. The earnings have to be strong for the investor to be willing to pay more for…
Should You Day Trade with Stocks? Academic research shows that the “majority” of day traders lose money! It would be very difficult to earn a living day trading. Because of this many money managers and analysts do not participate in day trading. What is Day Trading? Day trading is when an investor purchases and sells…
Why aren’t more women investing in stocks today? Especially, since history has proven that stocks have outperformed every other investment! Stocks long-term have beat the returns on cash investments, bonds and real estate. And, yet many women tend to be shun stocks and put their money in these investments! This can be a mistake. Why settle…
An investor should have adequate financial knowledge of the 3 major stock indexes. These indexes are as follows: Standard & Poor’s 500 Index, the Dow Jones Industrial Average, and the NASDAQ Composite. Following these indexes will provide the investor with an overall gauge of how the American stock market is performing! What Is The S&P…
When should an investor sell their stocks? The first and very obvious reason I will discuss is when the investor has made a mistake in the judgment and selection of their stocks. When They Have Made An Error In Their Judgement: It is important for investors to acknowledge mistakes quickly and then move on. Many…
Individuals do not need a lot of money to get started investing in stocks! Investing in stocks isn’t only for the wealthy! Getting started investing in stocks does not require a large “initial” cash outlay! Many people have the mistaken belief that one has to have “real” wealth built-up to get started investing in stocks. This…
