Stock Market

When people think of making money in the stock market they usually think about buying a stock at one price and selling it for a higher price. But an investor can also make money when a stock goes...

The United States accounts for only 50 percent of the world's capitalization when it comes to investing. For this reason, many investors will have part of their portfolios in overseas stocks to...

There are two basic ways to buy stock in the stock market in relation to price paid for that stock. An investor can put in what's called a market order which will buy the stock at the current...

There are thousands and thousands of stock funds available to the investor. How does she determine which one is right for her? Comparing funds is one way to help her decide the best investment...

Many people make money in the stock market by investing in good companies and keeping them long-term. But many more people engage in a practice called jobbing. Jobbing is the practice of buying...

Stock options (puts and calls) give an investor the opportunity to buy or sell a security at a specified price and at a given point in the future. Typically call options are purchased on bullish...

Buying stocks on margin involves borrowing money from your stockbroker to pay for a portion of the stock purchase. Margin stock buying is subject to certain rules, and buying stock on margin can...

What differentiates the institutional investor from the retail investor is the large block buys the institutional investor makes. While individuals and small groups comprise the retail sector,...

Buying on margin allows investors to borrow money to purchase stocks in an attempt to gain greater leverage. An investor's profits are magnified if a stock purchased on margin goes up, but the...

There has been a real explosion in options trading over the Internet in recent years. The advent of Internet stock trading has made trading options more available to the average investor. The cost...

Most investors will invest in securities that are publicly traded in the stock market. But there are privately held companies that may be available to the investor to help grow a portfolio. Many...

Investing in the stock market is not for the faint at heart. The rewards can be generous, but risks are also present. While it is impossible to avoid any risk when investing in stocks, you can...

Short interest refers to the number of shares of a company's stock that were sold short by investors who have not subsequently purchased shares to cover the sale.

Investing in the stock market takes time, research and of course money. Armed with knowledge and aware of the risks, rewards can be obtained. There are many ways to invest and buying stocks, and...

Many investors have experienced the frustration of buying a stock only to have it go lower after the purchase. Or some have sold a stock and watched as the price went much higher, making the...

Buying stock on margin is borrowing money from your stockbroker to pay for part of the purchase price. You have less cash invested to achieve the same profit when the stock increases in value.

People invest in the stock market for many reasons, but key reason is to make money on the investments. Investing in stocks is more of a buy-and-hold approach than stock trading, which may involve...

The stock market is an unpredictable and sometimes volatile entity. If you aren't smart about your stock market investments, you can lose big money. While the stock market is complex, there are...

Like many investing terms, what is called a penny stock changes from investor to investor. Some investing experts say that any stock priced below $1 is a penny stock, while others like the United...

Investing in the stock market can be overwhelming and intimidating, especially in a turbulent economy. There are some things you can do, however, to help you make better investment decisions. By...

Stock gaps provide opportunities for investors. A stock gap is when a stock opens either significantly higher or lower than the price at which it closed the previous trading day. There are...

Buying stock on margin allows the investor to increase the amount of stock she owns by borrowing money from the broker using stock held at the brokerage for collateral. Using leverage to buy...

An evaluation of stocks by an independent analyst is called a stock rating. Stocks are rated by rating agencies such as Fitch or Standard and Poor's. The rating agencies are nationally recognized...

When an investor believes that a stock will decline in price he can short the stock. Shorting a stock allows an investor to make money when the share price decreases. Just as in buying stock long,...

Buying stock on the margin involves borrowing a portion of the money necessary to buy the stock. The borrowed money is called a margin loan. Buying stock on the margin increases the profit...

Buying stocks on margin is an aggressive stock market strategy. Investors who use margin should understand both the benefit and downside possibilities of margin investing. Also, margin accounts...

Writing covered calls is an investment strategy that aims to make a profit in the options market but without the usual risk. Options are risky instruments. In fact, every investor is required by...

The lure of the stock markets is powerful, regardless of the economy. Why? Well, as the saying goes: In every situation, there's a winner and there's a loser. With stocks, it's the same way. When...

You may know that your bank deposit is protected by the FDIC (Federal Deposit Insurance Corporation), so that even if the bank fails you have some recourse to get some or all of your money back. ...

Stock market investing is a combination of reading and appreciating technical and fundamental analysis. Once basic terminology is understood the investor should practice and become proficient at a...

Mortgage securitization is a fairly complex process and involves innovative financial constructs. Essentially, the process evolved so that investors and large investment banks could turn more...

Stock investment is one of the main strategies people have traditionally used to increase personal wealth. There are varying approaches to stock investment, but the general idea is to predict the...

Hedging stock is an important tool for diversifying risk by pairing the stock owned (the long position) with an appropriate short position. Thus, hedging is not about absolute return but rather...

In order to write a covered call option, an investor must find out if their online brokerage account has the option to perform this function and what other stocks allow as well. Invest in the...

How to go about picking stocks is unique to the investor and their own financial situation. The first step in choosing stocks is to get a financial plan done with goals and objectives to see how...

Large investment companies purchase bundles of mortgages from retail outlets. These investment banks acquire this debt and take on the liability. The debt is then bundled into larger packages and...

Short selling is a risky investment strategy that involves trading with stocks that are not in the investor's possession. When taking a traditional long position on stocks, where the stocks are...

Online discount brokerage firms have sprung up and have put individual investors in the driver's seat. There is a plethora of online brokerage firms that give the individual investor many choices...

Exercising stock options is when a potential investor decides to take advantage of the original option contract to either purchase or sell the stock option. Learn how exercising stock options will...

A mutual fund load is the upfront or back-end costs charged to the investor when purchasing a mutual fund. Find out how mutual fund loads are used to pay the broker and the company with...

Stock warrants are issued with a debt instrument that allows an investor to buy stock a later date for a higher price. Learn how companies use stock warrants to make debt seem more appealing with...

The easiest way to buy gold is from the local metal shop, but buying futures as an institutional type of investor can get the best price. Find out how to buy gold stock with help from a portfolio...

Investing in lower-end value stocks means that an investor is dealing with stocks valued as close to possible to the private market valuation. Buy cheap but quality lower-end value stocks with...

Ideally any money set aside must grow long term to avoid losing purchasing power. If you are comfortable with risk and have a long-term time horizon, the stock market can offer the average...

A stock option is an investment vehicle. Basically it is a contract that gives an investor the right, but not the obligation, to buy or sell stocks at a future date. According to How Stuff Works,...

Scale trading is a method of stock trading where a person takes an initial position and then adds to the position if the price drops. As those further purchases increase in value, the trader sells...

Personal investment in stocks is more than just numbers. It takes time, effort and understanding. Learning to read stocks is one part of becoming a successful investor but even this is a subject...

When you add a stock to your portfolio, the worst thing you can do is simply forget about it. Knowing how to track stocks is essential to succeeding in the market and maintaining a winning...

Many American companies are publicly traded. That means that stock can be bought and sold on open exchanges. Other companies may be privately held, but still have stock which is traded...

When most people think about investing, they think about stocks. Buying stocks is actually a fairly simple process thanks to the modernization of the exchanges and the advances pushed out by...