Monday, 29 July 2013

Stock Investing

The book I read to research this post was Stock Investing For Dummies by Paul Mladjenovic which is an excellent book which I bought from kindle. There is 2 types of stock preferred & common. Preferred gives you voting rights and you are more likely to receive a bigger share of a dividend. Common means you get more money back if the company goes into liquidation. You need to do your homework on a company prior to investing in it. A couple of good websites for researching the market in general are http://bloomberg.com & http://marketwatch.com. Also try the Wall Street Journal at www.wsj.com. A site that tells you things like how to read a financial report is Dismal Scientist at http://dismal.com. A site that has information on individual companies is http://nasdaq.com. 2 that cover various aspects of individual companies are www.sec.gov & www.prars.com. It is possible to make money in almost any market even in a war the defence industries will probably be booming for example. A company you invest in should show a healthy profit compared to its competitors and that profit should increase each year by at least 10%. Also check the companies debts and compare the profits to its running costs. A lot of people look to a broker for advice but these aren't infallible and many follow market trends and don't analyze a company shrewdly enough. Just look at the dotcom market collapse when many computing and technology companies saw there shares become over valued and then collapse. Information is the key to successful investing.

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