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Summary: Some basics of the stock market include deciding on how to divide money between fixed income, bonds, equities and stocks, and diversification of investments is important, putting a bit of money in large, small, growth, international and emerging companies. Learn about the stock market with investing advice from a certified financial planner in this free video on personal finance.
Melissa Hammel, a certified financial planner (CFP) and nationally certified counselor (NCC), serves as the managing memberer and principal financial planner at Hammel Financial...read more
Personal finance is the application of financial principles to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, while taking various financial risks and future life events into account. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies and income tax management. In this free video on personal finance, a certified financial planner offers advice on investing money in stocks, bonds and mutual funds. Find out how to invest in oil and natural resources, gold and precious metals, and foreign stocks. Get tips on finding a mutual fund that lowers the investment risk, and find out how to open a certificate of deposit, 401k or IRA. Make money grow through the art of investing.
"Today we are going to talk a little bit about stock market basics. One of the biggest decisions that you need to think about is how you are going to divide your money between fixed income and bonds versus equities or stocks and the reason for that is that is what is really going to determine how much risk and volatility your portfolio experiences. There are some other areas that you need to consider, the biggest piece is diversification and the way that you diversify your portfolio is to make sure that you have a variety of investments. Some examples would be you need large companies, small companies, value companies, growth companies, international and emerging market companies as well as some real estate and then you also need to think about short term bonds and long term bonds. Having a little bit of money in each one of these areas will help you diversity your portfolio and receive some long term investment benefit."
eHow Article: About Stock Market Basics