Archive for October, 2008

What Are Stock Options?

Stock options are securities that offer investors a way to “bet” on the future price direction of a stock. Stock options provide the contract purchaser the right to buy or sell an asset a stock at a set price, on or before the expiration date of the contract. The contract seller agrees to [...]

Free Stock Market Software

Stock Research Pro announces a free stock market software program for tracking your stock portfolio.
Stock Research Lite is a free, downloadable software program that enables the stock market investor to track their stock purchases and sales through a simple yet robust interface.

Investing in a Dividend Stock

The term dividend stock describes a stock that offers payments to an investor for owning shares of that company’s stock. Some, but not all, companies offer dividends to their shareholders and there are both advantages and disadvantages associated with a dividend stock.

The Role of the Stock Analyst

The stock analyst (or “security analyst”) can play a useful role in helping investors make purchase or sale decisions on particular stocks. The stock analyst is a financial professional with expertise in evaluating stock investment opportunities.

Be Wary of Stock Advice

When it comes to stock advice, everyone seems to have some ideas to share with you. Stock market advice is found in the newspaper, in magazines, on television, and all over the Internet. The direction of the stock market and the best stocks to buy or sell is often a popular topic around the [...]

The Basics of a Securities Investment

A securities investment can be a number of different things. The term “security” is used to describe a variety of investments, including stocks, bonds, notes, limited partnership interests, and more.
When a government entity or company needs money to finance projects or provide services, it will often issue these securities to investors who purchase [...]

What is Paper Trading?

Paper trading (or “virtual trading”) was designed to enable novice stock investors to learn or practice the trading process in a simulated environment without risking any money.
In the paper trading process, the investor takes investment positions using imaginary money in a process that is created to mimic actual market conditions. Using paper trading tools, [...]

The Rule of 72 (includes calculator)

“Compound interest is the greatest mathematical discovery of all time”
-Albert Einstein
The Rule of 72 offers an easy method of determining how long it will take to double an investment at a fixed interest rate with compound interest. Compound interest, as you probably know, is the adding of accumulated interest back to your principal, so [...]

Does Timing the Stock Market Work?

“I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two.”
-Warren Buffett
Stock market timing (or “market timing”) is a strategy under which the stock market investor makes buy or sell decisions based on the prediction of future price moves. [...]

The Dogs of the Dow Investment Strategy

Under the dogs of the Dow investment strategy, the investor selects the Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price. Proponents of this strategy believe that the list of stocks should be re-visited and adjusted annually to pick the top ten stocks that meet these criteria.