Investing

Companies become publicly traded--that is, they list their shares on the stock market for the public to buy and sell--as a means to raise capital. Public trading is how companies grow and how...

If you are thinking about buying a gold ETF (Exchange Traded Fund) then you need to do your research first. Read on to find out more about buying a gold ETF.

I don't know quite what "invest shares" means, but it is a very popular search term on Google, and if that audience is looking for what I think it's looking for, they could use an...

Direct individual purchase of stock by foreigners in Chinese companies is prohibited by Chinese law. That doesn't mean that you can't invest in Chinese companies or profit from Chinese economic...

Today's investor faces a dizzying array of options. One can invest in stocks, commodities (oil, gas, wheat, etc.), precious metals -- and do so via exchanges around the world with just a click of...

Investing with covered calls is one of the safest types of options to work with. In this article you will learn the basics of how to use covered calls with an online trading account in just a few...

If a company feels its stock price is not where it should be, it can consider a stock split. The number of outstanding shares is increased, while the price of each share decreases. In a reverse...

Options are a powerful investment tool, but they can be tricky. You need a firm grounding in how they are structured and have experience with buying and selling securities before trading them.

An investment company pools money from multiple investors and uses those funds to purchase various securities such as stocks and bonds. Investment companies may be closed end funds or open end...

The market value of equity is another term for market capitalization ("market cap" for short). Market value of equity is defined as the total cash value (based on the current market price) of the...

Short sales are simply the sale of a stock without owning the stock. You need someone to loan you the shares, which a brokerage firm will do, so you can sell them. Then once the sale is made, or...

Corporations issue stock in different classes and types for a variety of reasons. Stocks have various benefits to the shareholders in different classes. For instance, one class might have a higher...

Paper trading allows perspective investors to practice playing the market without actually entering any transactions. Free of monetary liability, an investor can imitate trades and keep track...

Daytrading is not that difficult. It takes absic understanding and a little cash to make lots of money.

Stock buybacks are a way to reward long-term investors in a stock. Stock buybacks use cash from corporate earnings and sales of assets to repurchase stock through a one-time auction or irregular...

Penny shares are low-value stocks. Companies offering low value shares are often new companies with small net tangible assets and a short operating history. Penny shares do not automatically mean...

If you sell shares of a mutual fund, you are required to pay income taxes on any profit, or you can take a tax deduction if you sold at a loss. Your gain or loss can be calculated by subtracting...

Preference shares, also referred to as preferred stock, refer to a class of equity that carries particular claims over those of common stock equity. Corporate financial management has introduced...

Common and preferred stock represent two forms of corporate shareholder equity. Financial managers must weigh the benefits for issuing varying combinations of common and preferred stock against...

Buying stocks is a very tricky prospect for many. It is definitely not for the faint of heart. When you buy stock in a company, you become a shareholder of that company. Stock purchases represent...

When a company incorporates it must designate in its articles of incorporation how many shares of stock it will issue. A stock share is an ownership stake in a company issued to an individual,...

One of the benefits of owning stocks is that many companies pay dividends. If a company is profitable--particularly if it is a mature, stable company that doesn't need to invest most of its...

Closed-end mutual funds issue shares only once, then the shares of the funds are traded on the stock exchanges. Closed-end funds are actively managed and can invest in illiquid securities that are...

Shares of stock provide an investment in the growth and income of corporations. Stock ownership is partial or fractional ownership of the company. Long-term investors want to see the value of...

Stocks are a way to buy a small portion of a company. For example, if a company has issued 1 million shares and you own 100 shares, you own 0.01 percent. Stocks are traded on many exchanges, ...

The stock market is a collection of many individual markets. Stocks are traded over one of several exchanges including the New York Stock Exchange, the NASDAQ and the London Stock Exchange....

Many investors are well aware of the concept of making money investing in stocks from a long perspective. The idea of buying low and selling high is fairly straightforward and easy to understand....

ETF stands for exchange traded fund. It is a variation of the mutual fund. The ETF is comprised of a specific set of stocks, bonds or commodities. A financial institution creates an ETF by...

Many stock market investors buy the same stock at different prices. The stock may have gone down on a bad market day and you want to get more shares at a lower price. Conversely the stock price...

Investing is an integral part of wealth building. One has to save to invest and invest to grow. With internet becoming part of our life it is easier than ever before to trade stocks. Trading...

Mutual funds and exchange-traded funds (ETFs) are investment vehicles that allow you to hold a diversified portfolio of stocks or track stock market indexes. Mutual funds and ETFs are very...

Most of the time, investors think in terms of finding stocks to buy which they think will increase in value. Inevitably, anyone trading stocks will run across stocks they believe are overpriced....

Investment funds are pools of investor money that are offered and managed by financial institutions. The pools will have specific investment objectives and holdings that allow investors a...

No one likes seeing the value of their investment portfolios fall. There are ways to manage risk that can minimize the chance of you losing money, but you have to understand nothing will be...

Preferred stocks are popular with conservative investors because they carry less risk and have high dividends while still presenting the opportunity for some equity growth. These features lead...

Options trading is accessible to anyone and is much simpler than most people think. The key is to understand how much leverage exists and how much you can potentially lose in a worst-case...

A shareholder is someone who owns stock in a public company. By investing in the shares of a company, an investor is lending money to a company in the hopes that it will grow, generate more...

A company's board of directors decides if a stock will split to increase the number of shares outstanding. A stock split will also affect the stock's price. A stock split is most common when a...

Preferred stock are so-named because they offer benefits to their owners beyond common stock. Primarily the advantages of preferred stock are a higher dividend yield and a more superior position...

Everyone would like always to buy low and sell high when they invest money, but that is not possible unless you are a genius. However, there is a simple method which will enable you to get a...

Ordinarily, losses on stocks can be used to offset gains and thus lower tax liability. A major exception to this, however, is the Internal Revenue Service (IRS) "wash sale" rule. The purpose is to...

Learning how to buy shares online is actually fairly easy. It is much cheaper than going through an actual broker to buy and sell stocks for you, so you have the opportunity to save a lot of money...

Stocks represent shares of ownership in a company. A company can issue several classes of stock, and they are grouped into either the common stock class or preferred stock class. Each class has...

Of all the precious metals, gold is the most popular investment vehicle. It is considered a good investment by many because the global commodity has been more stable than others in times of...

Even in this down-turn, with the economy as bad as it is, there are still people making money on stocks. This is the BEST way to ensure you continue to make money; to ensure your money works for...

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,...

Companies can buy back common stock in two ways: either offer to buy a certain number of shares at a specified price, which is known as a tender offer, or simply buy back stock on the open market...

The term "corner the stock market" denotes that individuals or groups have purchased enough shares of a stock so that they own all outstanding shares of a company and perhaps more, due to shares...

When shorting a stock, the investor will make money if the price of the stock's shares will fall. One of the measures investors use when evaluating a stock is the short interest. This measurement...

The stock market has come a long way from its origins in Cairo in the 11th century. Today, the world stock market is estimated at being close to $36 trillion (See References) and stocks can be...