Dollar Cost Averaging is the method of purchasing a fixed dollar amount of one particular investment at regular period of times, regardless of the share price.

Fundamental analysis is the process of looking at the basic or fundamental financial level of a business, especially sales, earnings, growth potential, assets, debt, management, products, and competition.

A stock investing tactic where you purchase the ten DJIA stocks with the highest dividend yield at the start of each year.

Definition: With stock charts, you can view as much as 20 years of data or as little as a few minutes with a variety of line styles, color pallets and comparison features such as technical indicators.   More Detail: Many web sites that offer stock charts offer advanced features. Some of these features offer  the Read More…

A stock quote is a list of prices (generally bid, ask and last) for a stock at a particular point during the trading day. Stocks used to be quoted in fractions, but now most exchanges use decimals.

IPO

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

There are many research tools available and many of them are free. Of course, there are some very sophisticated tools that come with hefty price tags; however, for most investors all the research they’ll need is free or available for a modest subscription.

Steps to consider as you make your first trade.

Common and preferred are the two main forms of stock; however, it’s also possible for companies to customize different classes of stock in any way they want.

Stocks are shares in ownership of a company. Stocks represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, your ownership stake in the company increases. Whether you say shares, equity, or stock, it all means the same thing.

A Trading Halt is the temporary suspension of trading of a security for a specific period of time. Trading Halts typically last for an hour, but can extend into days.

Time Decay is the inclination for options to decrease in worth as the expiration date draws near. The extent of the time decay is inversely connected to the changeability of that option.

A Sharpe Ratio calculates the extra return you make compared to the extra risk you take on.

Everyone has their favorite stock market myths but here are a few you might like to add to the collection:

Factors that contribute to selecting your trading strategy include: personality, goals, amount of investment capital and comfort zone.

We are rapidly approaching the moment whereby the risks of continued monetary support may outweigh the benefits. Several Fed governors, including Charlie Plosser, Jeffrey Lacker and Richard Fisher, seem to already agree with me. These Fed officials seem to understand that the longer we wait, the harder it will be to unwind.

Capital Asset Pricing Model (CAPM) is a method used by investors to prioritize what stocks to invest in, given their limited cash.

The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but “fail to deliver.”

The cash received from the short sale of a security. The interest return from investment of the short proceeds is usually divided between the short seller, who gets partial “use of proceeds,” and the securities lender.

Video explaining the time period over which an order that you are placing is valid.