Investing in Stocks: A Beginner’s Guide (Part 3)
Trading Strategies and Types of Stocks Stocks are issued in two main types: common stock and preferred stock. Some companies go one step further and issue classified shares separated into several classes. Each type of stock has unique benefits and drawbacks. Common stock vs. Preferred stock COMMON STOCK PREFERRED STOCK Lower priority for dividends Nearly […]
Investing in Stocks: A Beginner’s Guide (Part 2)
Risks and Rewards All trading involves risk, commissions and other fees, and potential tax implications. Before you begin trading, educate yourself about how stocks are traded on the NYSE and NASDAQ markets and how earnings reports, market forces, and company changes can impact stock prices. This knowledge will help you become a more responsible self-directed […]
Investing in Stocks: A Beginner’s Guide (Part 1)
Buying and selling stocks for investment is no longer the domain of the professional trader. Master the basics of trading first, then you'll be ready to research and manage your own investment portfolio. What are stocks? A stock is a type of security that reflects ownership in a publicly traded company. When companies need to […]
Investing in Options: A Beginner’s Guide (Part 4)
Speaking Greeks For option traders, the Greeks are a series of handy variables that help explain the various factors driving movement in option prices. Although the Greeks collectively indicate how the marketplace expects an option’s price to change, the Greek values are theoretical in nature. There is no guarantee that these forecasts will be correct. […]
Investing in Options: A Beginner’s Guide (Part 3)
In the options world, there are two types of volatility: historical and implied. Historical volatility refers to how much the stock price fluctuated (high price to low price each day) over a one-year period. Since it's historical, this figure refers to past price data. If the number of data points is not stated (for example, […]
Investing in Options: A Beginner’s Guide (Part 1)
Options are a versatile financial instrument for investors. They are also complex and somewhat risky. It's important that you understand the basics of option trading strategy before diving in. What is an option? Options are contracts that give you the right to buy or sell an asset at a fixed price (strike price) for a […]
Investing in Bonds: A Beginner’s Guide (Part 4)
When you include bonds in your portfolio, you are adding diversity and offsetting potential risks to your investment. Consider these strategies as you prepare to begin bond trading. Reduce overall investment risk Stocks may go up over time, sometimes with spectacular results. But they can also stagnate, lose value, and, in rare cases, lose their […]
Investing in Bonds: A Beginner’s Guide (Part 3)
Bonds provide a fairly predictable stream of income. They are called fixed-income securities because the amount of money you receive and the dates on which you receive your payments are specified in advance. Fixed-income securities typically have a lower risk factor than stocks. Of course, any investment involves risk. Risks and Rewards of Bond Investing […]
Investing in Bonds: A Beginner’s Guide Part 2 – Important Terms
Bond trading involves special terminology and strategy. Here’s a quick overview of the most common terms used by investors. Face value The face (par) value of your bond is the amount the issuer pays you, when your bond reaches maturity. Face value is not necessarily what you paid for the bond, which is known […]
Investing in Bonds: A Beginner’s Guide (Part 1)
Depending on your financial goals, time horizon, and risk tolerance, investing in bonds (debt securities) can play a key role in diversifying your portfolio. What is a bond? When corporations, municipalities, governments, and other entities need funding for their major projects, they raise money by issuing bonds to the general public. Think of a bond […]
