2-11 Resources

Glossary Ask Price: The price that sellers want to sell for is called the “Ask” price. Bear Market: A prolonged period of pessimism and falling stock prices that seems to feed on itself and generates even more pessimism and even lower stock prices. Bid Price: The price that buyers are willing to pay is called Read More…

As a newer investor, you should also be aware that you can save some research time by investing in mutual funds instead of individual stocks. Mutual funds contain a mix and diversity of stocks in which you will spread out one investment into many small blocks of shares. Mutual funds and ETFs (exchange traded funds) Read More…

While the wild roller coaster swings of the market make the media highlights, stocks remain an excellent choice to achieve a high – and steady – return. In finance textbooks, this is called return on investment (ROI) and is one of the most important measures of all investments choices. After all, when comparing different investment Read More…

When you are ready to make your first trade you must open a brokerage account. Brokers generally fall into two categories: full service and discount brokers. Full service brokers like to make the decisions for you and will call you frequently with their ideas, suggestions and corporate research—but they will also charge you a hefty Read More…

2-07 The Danger of Trying to Time the Market

 The mere perception that a market is becoming Bearish is not a predictor of disaster. Fortunes have been made in Bear MarketsA prolonged period of pessimism and falling stock prices that seems to feed on itself and generates even more pessimism and even lower stock prices.. The trick is to know when one is coming Read More…

2-06 Bull vs. Bear Markets

Bull and Bear MarketsA prolonged period of pessimism and falling stock prices that seems to feed on itself and generates even more pessimism and even lower stock prices. play a strong role in extending or ending business cyclesThe typical business cycle consists of periods of economic expansion, contraction (recession) and recovery to a new peak.. Read More…

2-05 Market Timing and Moving

Now that you know what the stock market is and what role the Stock ExchangeStock exchanges are simply organizations that allow people the ability to buy and sell stocks. play, let’s take a step back and look at how stock prices and the economy move. As you might expect, timing is extremely important in investing Read More…

Now that you know what an exchange is, it’s necessary to make a very important distinction between what shares trade on exchanges and what shares don’t. Most companies are private companies and don’t trade on exchanges. The barber shop and the florist on the corner, the guy that cuts your grass, and the plumber that Read More…

2-03 Other Stock Exchanges

In addition to the New York Stock Exchange, there is also the American Stock Exchange (AMEX) and NASDAQ. In the past, the NASDAQ was for smaller companies that were just getting started, and it was prestigious for them to move up to the NYSE or AMEX. These smaller companies included a few you might have Read More…

2-02 A History Lesson – Wall Street

In the mid 1600s simple fences denoted plots and residences in the New Amsterdam settlement in what we now call lower Manhattan Island. This location on the island was critical as it allowed easy access to both the Hudson River and the East River. To protect this settlement, in 1653, the Dutch West India Company Read More…

2-01 What Are Stock Exchanges?

So what exactly are “Wall Street” and the “New York Stock ExchangeStock exchanges are simply organizations that allow people the ability to buy and sell stocks.”? You have probably heard these words thousands of times, but unless you are a stock owner they might have gone in one ear and out the other. Stock exchanges Read More…