Stocks
Investing Online
Welcome to
Stock-Investing-Online.com
Stock-Investing-Online.com Revealed
the secret of Stock Investing, the indispensable practical guide for
beginner stock investor and advance investor.
The
two most important characteristics of common stock as an
investment are its residual claim and limited
liability features.
If
you are stock investing newbie, an
Introduction
to Investment will be a good start for you. This session
will get you familiar with
The
Investment Environments and what
are the
Markets and Instruments.
Furthermore, they also address you how company
issued out
Ordinary Shares. And how company
pay out
Dividends and Retained Earnings.
Instead of buying shares individually, investors can
pool their money and buy shares collectively.
Unit Trusts
and
Hedge Funds,
for example.
Financial statements typically consist of income
statement, balance sheet and cash flow statement.
As
an investor, start with
Understanding Income Statement,
Analyzing Balance Sheet
- Assets,
Analyzing Balance Sheet
- Liabilities and
The Statements of Cash Flows
give you an accounting picture of the firm's operations
and financial position. Then using various financial
ratios such as
Asset Management Ratios,
Debt Management Ratios,
Profitability Ratios,
Liquidity Ratios,
Market Value Ratios to help you
on making a decision for you stock investing.
Gearing
is refers to the company borrowing or debts to
shareholders' funds.
Financial
asset markets deal with stocks, bonds, notes, mortgages,
and other claims on real assets.
For
investors, the
Market
Structure can tell you where capital is raised, securities
are traded, and stock prices are established. As well as,
The Financial Markets
is to brought together those people and organizations having surplus
funds and who wanting to borrow money. And
Financial Institutions or
Financial
Intermediaries is transfers of capital between
savers and those who need capital.
Investors face a trade-off between risk and expected
return. And how to achieve the best trade-off between
portfolio risk and reward.
Risk and Return
considerations are minimal as long as issuer
of the security is sufficiently creditworthy. However, there are
still
Different Types of Risk in the market when you do
investment. Suppose you believe that investments in stocks offer an
expected rate of return of 10% while the expected rate
of return on bonds is only 6%. Would you invest all of
your money in stocks? Probably not: putting all of your
eggs in one basket in such a manner would violate even
the most basic notion is
Diversifiable Risk.
On
the other hand, if an investors can construct a
risk-free or sure profit in the markets is called
Arbitrage.
Security analysis is to determine a proper price for a
firm's stock or correct value of a security in the
marketplace.
The
Bonds is the basic
Fixed-Income Marketable Securities, and normally it have
the advantage of being relatively easy to understand because the
level of payments is fixed in advance. And the
Yield
to Maturity is the
standard measure of the total rate of return of the bond over its
life.
We
describe the most commonly held types of
Equity Marketable Securities
such as stock, U.S. Treasury bills (T-bills), bank certificates of
deposit (CDs) and money market funds.
There
is one popular method of raising new funds through
Rights Issues.
Derivatives securities, or simply derivatives,
play a large and increasingly important role in financial markets.
There are securities whose prices are determined by, or "derive
from", the price of other securities. These assets also called
contingent claims because their payoffs are contingent on the
prices of other securities. Options and futures contracts are both
derivative securities.
A
relatively recent, but extremely
important for the investors is
Options,
Futures, and Other Derivatives. These are securities whose
prices are determined by, or derive from, the prices of other
securities.
Options Markets
and
Futures Markets
are both derivative securities markets.
