Investing Questions and Answers

How do you know that a stock can soar?


Question:
For example, G00GLE soared to $500 in a little.

Answers:
If you could KNOW that a stock could soar, so would everyone else. No such thing. But later again, if you don't invest in individual stocks, you will never own a chance to gain lucky. I have bought stocks at $3 and sold at $4, with the sole purpose to see them hit $54 dollars six months later. I enjoy also owned stocks that I bought at .30 and right now it is at $40. I have over 30,000 shares of the first one, so I thought a profit of $30,000 in a week be too good to help yourself to a chance of losing. So I sold. The second one I just bought 1,000 shares since it was such a lay a wager. I made great money, but If I had KNOWN it be going to do great, I could have made moderately a few million on these two stocks.
I have also bought $5000 worth of a supposed devout stock, only to lose it adjectives.
There is no such thing as a guarantee within stocks!
There is no way of knowing, especially next to an IPO. For every big success story, resembling Microsoft, Apple, or G00GLE (although G00GLE is still a very immature company), there are who know how many that never do much of anything. If you want to kind money reliably in the stock souk, rather than combing tons of stocks and trying to pick a beater you might consider investing in an index fund or an index tracking ETF, approaching SPY. If you leave your money in that for a long time, it will almost certainly grow fairly a bit, and you will also get dividends (which you should reinvest along the channel to make more money).
You don't know how large a stock will go but you can buy breakouts that indicate that the stock is more promising to go up than down.

Knowing when to market is even more important - as LeeT's answer indicates.
Unfortunately there's no foolproof method to do it...

My advice--

Find a fundamentally sound company that have had its share price battered down to well below historical level for reasons that do NOT affect the potential long occupancy profitability of the company. For example Genentech's PE has fall to 25 despite the fact that its still growing fast (its earnings be up 40% in the final quarter). While it may not go up tomorrow, I would be enormously surprised if DNA is not trading substantially higher contained by a year or two.


Starting within the stock souk.?


Question:
I am 15 and want to get started surrounded by the stock market. can anyone tender me any help on version and getting into the stock market for the first time. i dont wanna do anything big for awhile, conceivably i can start out with a couple hundred dollars. any books that you read that help would be good to.

Answers:
Good hypothesis trying to get started.

Maybe you can read the book "Investing for Dummies" by Eric Tyson.

Also, do you also know that several US brokerages, such as Etrade (www.etrade.com) require you to be 18 to open a brokerage reason?
https://us.etrade.com/e/t/welcome/genera...

So what you can do is ask your parents to open an report for you. One example is a Custodial account:
https://us.etrade.com/e/t/welcome/educat...

Your parents will control the tale until you turn 18 or 21.

However, maybe you can notify your parents to invest for you.

In general, since you are youthful, you can take like mad more risk. So you can invest in a single stock (but not a penny stock!!) or an ETF (Exchange Traded Fund) such as "EEM", which represents the International Emerging Markets such as Taiwan, Korea, China, Mexico, Brazil, India, Russia.

Learn more in the region of investments. You can start reading books such as "Investing for Dummies" by Eric Tyson.

Ideally, get your parents involved. You can research stocks together. A angelic stock to research would be stocks you already know. Do you like McDonalds? perchance you can invest in "MCD". Do you close to Games? Then consider Gamestop (GME). Of course, don't just buy it because you use the product. This is lately a starting point. Research the stock!

Also, watch "Mad Money" on CNBC hosted by former dissemble fund manager Jim Cramer. Lots of those surrounded by Generation Y like him. He may nouns a bit crazy on the show, but in sincerity, he as a very obedient hedge fund administrator before he did the Mad Money show.

Good luck!

(realistic flea market return: 10% per year over a long time. Of course, you can lose 40% in a year, or gain 40% of a year. If you hold an individual stock, the stock will be more volatile. Don't be surprised if you jump on a rollercoaster ride.)

(you can also try mutual funds, if you want, but it sounded like you are interested more contained by individual stocks. )
Learning before betting is the opening to go. Fortunately, here are a couple of very dutiful beginning text which are cheap.
***

"Trade Your Way to Financial Freedom" by Van Tharp, Ph.D.

"The Successful Investor" by William J. O'Neil

***
Both based on solid research over decades. Van Tharp is more generalized -- O'Neil, imho, comes to conclusions and make rules for reasons he does not explain [other than "my test show ..."].


GL
I would not invest in single stocks, I would invest contained by Exchange Traded Funds, or Mutual Funds.

A good book that will present you overall financial advice is "The Millionaire Next Door". It is particularly easy to read.
ditto next to second comment but only faultless brokers will allow you to invest at 15 personally I would put it contained by the online saving bank with no risk and starting at 4.5% a couple of hundred is ok but you really call for something like $2,000 to create an impact.
Join:

http://finance.groups.yahoo.com/group/tr...

- review the books on the front page and follow the pros for a while. Won't cost you anything.
You might want to create a "practice" portfolio at http://www.top10traders.com - it's free - respectively month the site ranks the best-performing investors.
look at those for dummies books.investing for dummies...mutual funds for dummies...and the best book by far for kids your age is learn to earn by peter lynch...find this book. it is the best history lesson by far...true american hisory
There is no limit to how much you can lose!!

Remember this reality!

Use some money to learn more in the order of trading.
You'll need to do courses..or you will lose your money...
guaranteed!


Putting money within the market money you need to protect
it from open market falls.

If you are seriously prepared to do this, I suggest

you learn how you can protect your stocks beside options.

I'll mention some resources that will serve you.


Can anybody out nearby notify me how stocks near divedend and yield work??also signed on next to street authority?


Question:
which is a newsletter kontokid

Answers:
Dividends are a portion of the profit paid out to shareholders. Companies that earn a profit can do one of three things: income that profit out to shareholders, reinvest it in the business through expansion, debt let-up or share repurchases or both, When a portion of the profit is paid out to the shareholders, the wage is known as a dividend.
Dividends be the primary reason investors purchased stock. It be literally said "the purpose of a company is to pay dividends". Today, the investor's spectacle is a bit more refined; it could be stated, instead, as, " the purpose of a company is to increase my wealth". Indeed, today's investor looks to dividends and means gains as a source of increase. Microsoft for example, did not wages a dividend until it had already become a $350 billion company, long after making the company's founders and long-term shareholders multi-millionaires or billionaires.

THE PROCESS

Dividends must be declared(i.e. approved) by a company's Board of Directors respectively time they are paid. There are three historic dates to remember concerning dividends.

*Declaration Date. The declaratin date is the day the Board of Directors announces their intention to money a dividend. On this day, the company creates a liability on its books; it presently owes the money to the stockholders. On the declaration date, the Board of Directors will also announce a date of transcription and a payment date.

*Date of transcription: This date is also known as "ex-dividend" date. It is the morning upon which the stockholders of record are entitled to the upcoming dividend transfer of funds. According to Barron's a stock will usually begin trading ex-dividend or ex-rights the fourth business daytime before the reimbursement date. In other words, only the owners of the shares on or until that time that date will receive the dividend. If you purchased shares of Coke after the ex-dividend date, you would not receive its upcoming dividend payment; the investor from whom you purchased your shares would.

Payment date: This is the date the dividend will in fact be given to the shareholders of the company.

A vast majority of dividends are rewarded four times a year on a quarterly basis. This money that when an investor sees that Coke pays a $1 dividend, he will certainly receive $.25 per share four times a year. Some companies, pay dividends on an annual justification.
Many companies pay dividends to their shareholders. Normally the dividends are rewarded quarterly. The company's board of directors authorizes the dividend payment and the amount.

The "dividend yield" is basically the annual dividend divided by the stock price. So if a stock is selling at $30 and pays a $3 annual dividend, the dividend yield would be 10%.


What does it be determined when a stock price go down purely in the past its proceeds conference ring up?


Question:
Is that good or fruitless?

Answers:
probably bad - someone who know something may have be selling heavily which forces the price down-may fall further after hail as if it is bad word
bad


Is nearby a place online or through a library to read the Turnaround Letter for free?


Question:
The Turnaround Letter (www.turnaround.com) charges $195 per year for a subscription. I know that The ValueLine Investment Survey is available at libraries. Does anyone know if the Turnaround Letter is, too?

Answers:
You have to walk to the library and see if they have it. If they charge $195/yr-they aren't going to put it on the net for free




Good Long terrm investment fund.?


Question:
Hi,
I was wondering what would be the best fund to set up for somebody underneath the age of 18, that would be a long term fund that would be good for retirement. IRA, Simple IRA? 401(k)? I have extra money that I want to invest long occupancy.

Thanks

Answers:
First congratulations on considering your retirement at this point in your enthusiasm! Just the fact that you're even thinking roughly speaking means you're powerfully on your way to nouns!

Rick's got it right IMO. Depends on where on earth you're working. If you have access to a 401k and they meeting follow Rick's advice.

Same do business for the Roth. If you don't have access to a 401k. Go next to the Roth.

Where? Go with Vanguard. Great company found on solid principles. You can spread out a Roth online. Not sure if you must be 18 however. I found a book you may want to take a look at. May be available at your library.

I would not consider a VUL (Variable Universal Life) or an EIUL (Equity Indexed Universal Life)or anything resembling it. You only carry life insurance when someone relies on your income. I would not sweat any life span insurance right now.

Just do what your doing, cram about your option (the web site and book should lend a hand.)

HTH

Jesse
If you have a 401(k) available at work and it offer any match, you should contribute up to the contest limit.

Second, I would really put all I could into a ROTH IRA. You will put within AFTER TAX money, but when you withdraw it at retirement, it will be tariff free!!

ABSOLUTELY DO NOT buy Universal Life or similar. You only buy go insurance if someone depends on your income to survive. Also, you invest in investments, not energy insurance. I listen to TONS of financial talk shows, read lots of magazine, financial books, etc. I have NEVER hear anyone recommend Universal vivacity as a savings vehicle (or annuities) save for those who sell them.

If you want enthusiasm insurance, buy good level-term insurance for subsequent to nothing at your age, and invest your money surrounded by investment vehicles. Not insurance agency annuities. They include glorious fees and high commissions. You recurrently can't get your money out for a long spell of time, etc.

Go to Dave Ramsey's website, or similar for more information. You can also read books like "The Millionaire Next Door" for more background.

Good Luck.
I agree with Rick, but would close to to add that you should also look into a VUL or EIUL next to an increasing amount. When properly structured either will do awfully well, much similar to a Roth, except there are a lesser amount of limitations when you want to access your money tax free. Feel free to contact me if you want more details.
You may want to consider a fund-of-funds. This is a mutual fund that invests surrounded by other, underlying mutual funds. For example, the manager will place 40% surrounded by a total stock market index fund, 20% surrounded by an international fund, 40% in a bond fund. There are copious different combinations available, depending on the goal of the fund.

The positive aspect of the fund-of-funds is that you get full diversification inwardly just one fund. You can put adjectives your money to work on day 1, short having to purchase your portfolio surrounded by a piece-meal fashion. Another power is that the manager will auto-rebalance for you. Many investors forget to rebalance, and very soon this critical function is done automatically. All in adjectives, a fund-of-funds is a very simple, all the same sound, method to invest.

There are several kind of fund-of-funds. Some are based on a predetermined risk plane. They will be labelel with name such as "moderate growth", "aggressive growth", and so on. Or, the fund could have a target-date to it, one designed for retirement. In a target-date fund-of-funds, the governor will make the fund more conservative as you approach the date. Once again, this make retirement investing very jammy.

These two firms are the best place to look for low-cost funds, including their target-date retirement funds:

http://www.vanguard.com
http://www.fidelity.com

As far as the type of account is concerned (401(k), IRA, etc.), this depends on your situation. A 401(k) is single set up through an employer. You can set up an IRA yourself, but you will need to contribute to it beside earned income . i.e. you will hold to have a livelihood.

Rick makes a fitting point about cash-value energy insurance (e.g. whole life span, variable energy, universal life). Those are life span insurance policies with an investment component. They are poor investments because they are plagued beside high costs. Along similar lines, an insurance company might also try to vend you a Variable Annuity. IMO, 99% of variable annuities are utter garbage because of their big costs. So, in summary, avoid cash-value time insurance and variable annuities.

I hold a free downloadable book on retirement investing at http://www.invest-for-retirement.com... . Took me 16 months to write that puppy. However, I don't charge a dime for it.
Invest in this mutual fund- symbol OFALX. It is run by Robert Olstein. Everything this guy touches turns to gold ingots.
Many US brokerages require an applicant to be 18 years old.

With a honourable brokerage like E*Trade, www.etrade.com, your parents can apply for an IRA for Minors:
https://us.etrade.com/e/t/welcome/iramin...
You involve to have earn income the year you are opening the details. You get charge benefits by using this IRA.

There's also a custodial account they can unfold for you. See all the resume in the details:
https://us.etrade.com/e/t/welcome/educat...

You can then research the stocks at E*trade. They proposition over 7000 mutual funds, a good percentage are no nouns, and no transaction fee.
https://us.etrade.com/e/t/investingandtr...


Two funds you could invest within (offered by E*trade)
1. UMBIX -- Excelsior Value and Restructuring, a morningstar.com 5 star fund. You get US massive cap exposure.
2. MDIIX -- Blackrock International index. Even if Morningstar.com rates them singular 3 stars, that's not the point. This is an international index fund that tries to match the international market. Many active mutual funds recurrently underperform their benchmark anyway.

Good luck to you!


Investing contained by medium and communication?


Question:
Does anyone have a record of companies (investment banks, dissemble funds etc.) that invest heavily in the picture and entertainment industries?

Answers:
Are you looking for a good investment that covers the medium and entertainment industry?

What about the PowerShares Dynamic Media Portfolio ETF(PBS):

Holdings of the PBS Exchange Traded Fund is here:
http://www.powershares.com/holdings.aspx...

A lot of the stocks are medium and entertainment company.

Or are you looking for these companies so that they can invest in your picture and entertainment company?




When spouse dies what portion of reciprocated stock is stepped-up?


Question:
Wife and I have shared stock account. Upon my departure, what portion of the stocks receive stepped-up basis? We invested over a term of years from our joint income.

Answers:
For stock purchased in somebody`s company, your wife would receive a stepped-up basis for your 50% ownership. The principle on her 50% would remain the same. If you enjoy been purchasing foreign stock over time, this becomes more complicated as you involve to keep collection of which stock to sell (oldest purchases sold first take advantage of lower possessions gains export tax - however, they would also have the largest appreciation and top realized gain).

The step-up and gain would not matter until she sold the stock.

The foundation step-up comes in handy if you own experienced considerable appreciation in the stock contained by which you invested.

To get more detailed abet, you can work with a financial planner or estate planner to push for you on this matter.

Ron, ChFC
That is a polite question. I may be incorrect, but I believe the answer is none. They are in concert owned. Therefore the cost basis is duplicate for all investments. ie what they be purchased for.


What could i do next to more or less 75,000 dollars??


Question:
could i get a college amount?
buy a car? (i want the most recent impala ss)
and still have some money moved out over?

Answers:
Wisely, don't spend it on a car unless you necessitate one to make more money. Try to spend it on something that will variety you more money, like a college amount or set up your own business.
Invest
well u cant buy a scope but u can pay for tuition at a college and buy an impala and u could own money left over
If you own the brains and the inclination, studying for a degree will increase your status within society and enhance your earning potential and is as a result, the clear top choice.

With what is left, buy an Impala and invest any symmetry. Some people are lucky.
Give a man a fish, and he eat for a day.

Teach a man how to fish and he eat for life.

Get a 4-year college point. With a college education, you can earn a correct living for life.

The 4-year college scope is one of the great divides in American society. People beside a Bachelor's degree or more commonly have worthy jobs beside incomes that keep gait with inflation. People near less rearing often hold a much harder time.

Buy a car if you hold any money left over. But if you bring a good background and launch a good trade, you'll be able to afford plenty of nice cars.

Don't forget to free some of your money. If you want to retire with a million dollars, you'll own to do some serious saving.


How to kind 2 million dollars contained by 2 days?


Question:


Answers:
Take a sleeping pill and hope you have a nice dream.
Win the Megabucks lottery.
Let me know when you catch the answer to that one. (;
If you know this, let me know, please!
If you know this, consent to me know, please!
Invest $5,000,000,000,000 in a funds account.
thats an smooth one. run around town and look for 100 million pennys every day for two days. duh


Stock query, when EMC spins past its sell-by date VMware contained by ipo what do the EMC stock holds carry?


Question:


Answers:
EMC will own some of the shares, but not the individual stock holder in EMC.
The VMWare IPO will create foreign shares for the IPO. These shares will constitute about 10% of the total shares of VMWare beside EMC owning the remainder. This process is called a "stub" offering, since it is a small fraction of the total.

Since these are clean shares, the EMC shareholder does not receive any VMWare shares (I think).

In theory this should dilute the meaning of the VMW shares that EMC still holds & EMC share price should decline a little as a result. But if the IPO shares of VMW trade up greatly contained by the first few days, then EMC shares should dance up moderately too.

If the EMC/VMW situation works like the Altria/Kraft situation, next maybe surrounded by a few years EMC will spin off adjectives of its VMW shares. If that happens when you are an EMC shareholder, next your account should enjoy some shares of VMW magically appear after the full spin off. While the info within this paragraph is possible, it is pure conjecture at this point.


With the marketplace burning for days gone by few years, should I put up for sale out of adjectives my index funds?


Question:
Or could this bull run continue for another few years?

Answers:
No one know what the market will do. The open market has gone up since March 2003. That's over 4 years! Generally the open market takes a breather after 4 years. The S&P 500 is simply new account highs. Generally at hand is a pullback when the market begin to test brand new highs after several years. Would I verbs all my money out? No. Would I transport some of the top now? Yes!
i chew over sell some first and see what happen
http://www.youtube.com/watch?v=fcsethfvo...
The current "Bull Market" has last since 1933, so go ahead and put on the market: why would anyone in their right might want to verbs earning 8-12% a year for doing zilch at all, when they could hang on to their money in a nice shoebox lower than the bed?
I wish I know. Indeed the market have been really devout these last several years. Bull market tend to run longer than people as a rule imagine. They tend to nurture on themselves. As do bear market also. How much longer this one will last is anyones guess. I believe that prudence should be exercised at adjectives times and more prudence should be exercised especially after a 4 year bull market run. But surrounded by this particular suitcase prudence would not necessarily mean selling adjectives of ones index funds. Certainly moving a portion of your investments to say t-bills would not be irresponsible. After all a currency reserve would come in mighty handy if the open market decided to shed influence 25% to 50% of its capitalization. It has happen many times within the past. It does appear that this bull marketplace has a ways to run all the same, but I sure do not know how far or how long and I could be very wrong on that assumption.
I know plentiful people who pulled out untimely this spring and now look at them. On the sidelines beside the bull passing right on by. NOBODY can time marketplace. It may be wise to verbs some off the table but it is best to invest within great companies or great mutual funds with proven track accounts and stick with them for the long term/...(AT LEAST 10-20 years)
Sell partially and hold on to the rest. Even the index rises above present levels it will drop below it at some time, for sure. It always falls again below an all-time large. Then you buy again.
depends on your age and tolerance for risk...take out possibly 25% and put into long term bonds...here you can procure around 6%


With the marketplace flaming for the recent past few years, should I get rid of out of adjectives my stock positions?


Question:
what do you think is going to take place with the open market over the next few months?

Answers:
I wouldn't get rid of them all, but I one-sidedly think the open market is overdue for a significant "correction" (i.e. drop), so I've sold some stocks that I think are overpriced. If I see a stock that seem undervalued, I'll buy it, but otherwise I'll hold onto the currency until the market falls and I can buy stock within good companies at lower prices.
Well seeing as the terrorists are planing something big again, I would of late sell everything but but maybe do a few stop loss directions. Certin companies still have a devout run left contained by them.
yes
it depends on the companies in cross-question. if you are holding alot of overvalue companies (G00GLE) then yes run your profits. if you holding a couple of undervalue companies after hold onto them untill they come overvalued.


happy investing
1) No.
2) I don't know.
No you shouldn't deal in out of all of your positions. You should own already established an exit plan. The market is surrounded by bull mode at this time. When the criteria that drove you to buy the stock fails, consequently you should consider selling.

If the fundamentals are still good, the report and expectations are OK and other criteria that suggested you buy the stock are still "green", you may want to set a trailing stop loss. Other wise, you may miss out on the bull run.
...
It will crash..most credible..a fall of 20% have been predicted.

There is underlying strength within but what goes up must come down. It will specifically become more volatile.

Check the resources below..especially the "trade the triangles" link:


Avoiding mutual fund fees?


Question:
Can I avoid paying annual mutual fund expenses by selling the mutual fund before the annual allowance charged or am I charged the fee during the public sale?

Answers:
No, this is not a good strategy. Most mutual funds require that you hold the funds for a sure length of time, like 90 days. If you put on the market before consequently you will be charge a penalty. Also, as mentioned above, the nouns fee is prorated thoughout the year. This is to avoid the daytraders from getting contained by to the funds.

Another consideration is taxes. When you sell, you will hold to pay means gains taxes. The impression of mutuals, is to hold for the long term, and go when you are in alower toll bracket, i.e., after retirement; or need the money for something vital.

If you're going to be in and out, base on market and financial considerations, then you should consider ETFs. With these, you grasp a basket of stocks within a specific sector or index, and have diversification, but can trade them like individual stocks.
//
No. If you hold the fund for smaller amount than a year, you still get charged fees and expenses on a pro rata justification.
If you bought A shares you already paid. If you B or C shares, you will repay part of the cdsc(sales charge) depending on how long you held the fund. If you could flamboyant on how long and the type of shares you have, I would know how to give you a better answer.
Annual fees are charged each day. They thought of your trick.
Let me think...if you get in a taxicab and asked the driver to take you three miles away...could you avoid paying by getting out at two and a partly ?? How about a plane ride?
Geeez, you get hold of in, ask nation to move things around so you make dutiful returns...then you don't want to salary?
... do you hold up the line at the supermarket next to expired coupons, too?
The annual expense ratio refers to the percentage that they take from you over a interval of a year. However, these costs are ALREADY factored into the NAV of the fund shares, spreading this cost among all 365 days (or 366 days surrounded by a leap year). The name NAV (Net Asset Value) imply that it has already factored contained by the Liabilities (costs). Assets - Liabilities = Net Assets.

You're already paying these costs right now. Right in a minute, as you read my words. And then, when you read the subsequent post, you will continue to earnings these costs. You will pay them every single daylight you hold mutual fund shares.

The better method is to pick low cost funds from the start. If you just stick next to http://www.vanguard.com for all your non-employer investing, you'll never enjoy to worry in the region of high costs.

..
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Did you really muse you could outsmart a multi-billion dollar industry?
if you are being charged mutual fund fees, afterwards you need to acquire out of that family and progress into vanguard or fidelity...look up both of these families, they are fantastic and charge subsequent to nothing


I'm looking for the best on-line discount broker please share your experiences dutiful or unpromising?


Question:
I want to start investing online stocks little at $20. Who's your best discount broker?

thanks for adjectives your response.

Answers:
I would recommend Scottrade. Grant it, I am a little bias, but Scottrade's reputation and service speaks for itself, and you can amenable an account beside as little as a $500 deposit.

Also, Scottrade does not charge for inactive accounts or for picture maintenance, and in attendance are no minimum number of transactions (trades) required. Scottrade has a flat rate ($7) for most online bazaar and limit equity directives, regardless of your trade frequency, account be a foil for, or the number of shares in a transaction.

You can compare the commissions/fees of several brokerage firms at: http://www.scottrade.com/online_broker_c... .

I hope you find this information adjectives. Please let me know if you enjoy any additional question. I'd be happy to give a hand.

Scottrade
www.Scottrade.com
1-8OO-619-7283
I use Firstrade.com. It was rate best by Consumer Reports.
I was just now on a similar hunt. I found a broker that charged $0 for normal stock trading(options be a premium). zecco is the broker. It might be a good deal depending on your goal. You get 10 free trades a light of day or 40 a month, whatever comes first. It is a relatively investigational broker so the account transactions tend to be a short time buggy. They should be able to iron those out soon though. Nice interface and industry standard execution. Real time quotes, deplorably I haven't seen streaming quotes or charts. Which is ridiculous if you ask me, but those resources can be found within other places for free. Good luck!


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