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…
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 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…
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…
Is investing in Bonds risky? Yes! Many conservative investors see bonds as “risk-free” and a safer investment than stocks. However, as you will soon discover, this is not always the case! What Is A Bond? First, it is important to understand what a bond is. Bonds are considered fixed-income investments. When a person invests in bonds,…
Dividends can offer an investor the “best of both worlds!” An investor can earn both capital appreciation (gains) and, also, dividend income on their stocks! What Are Dividends? Dividends are a cash payment to shareholders. They are a company’s distribution of profits as a reward for being a stockholder. Dividend-paying stocks provide an investor with…
Paper trading is a great “tool” for individuals new to the stock market! With paper trading, the first time investor is not taking on any real risks. What Is Paper Trading? Paper trading lets an individual practice their stock-picking skills, buying and selling stocks, without committing any real money! It is a simulated process…
One of the best-kept secrets of the wealthy is that the majority of them invest in stocks! The rich know that, historically, no other investment vehicle has the great returns stocks offer long-term. The Majority of Millionaires Invest: Studies have shown that the majority of millionaires invest. However, certainly not in savings accounts at a…
It is important to choose the right brokerage firm to invest in stocks. Brokerage firms help an investor buy and sell their securities. And, opening a brokerage account is as easy as opening a bank account. There are two types of brokerage firms: Full-Service and Discount Brokerage firms. Both of these firms differ greatly from one…
