> Understanding Stocks

Stock Exchanges (7) Stock FAQ (6)

Introduction to Stocks
Stocks are the basic units of ownership in publicly traded companies. There are two basic types of stocks.

Bull and Bear Stock Markets Two Sides of Same Coin
Bull and bear markets go together and are necessary for an efficient market.

Poll Results Show Confidence in Stocks
The results of a poll on where the Dow be at the end of 2008 show stock investors are positive. Will their confidence hold up?

Where will Dow be at End of 2008? Take the Poll
The new year poses many challenges for stocks, including high oil prices, the credit crisis, and a potential recession.

Supply and Demand Drive Stock Prices
Stock prices are driven by the relationship between buyers and sellers. Attractive stocks have more buyers than sellers, which drives up prices, while less attractive stocks feel the reverse effect.

Prepare Stocks for Bear Market
Bear markets happen, but if you prepare your mix of stocks and bonds you have a better chance of coming out with less damage.

Don't let Stock Market Disrupt your Plan
Turmoil in the stock market may tempt investors to drop their investment plan and react to the market. That's a bad idea.

Stock Market Labels: Bear or Correction
The movement of the S&P 500 tells us whether the stock market is a bull, bear or in a correction.

When Stock Short Sellers get the Squeeze
Short sellers, who profit when stocks fall, sometimes get caught when the market moves against them. In covering their shorts, they create a mini-rally.

Don't try to Time Bottom of Falling Stock Market
You are making a mistake if you try to time when a down market will turn around. Research shows you are better off staying in the market.

Good Stories may make Good Stocks
Companies with compelling stories may sound attractive, but it takes more than interesting ideas to make a good stock investment.

Slowing Economy not Good for Stocks' Future
Companies that don't invest in expansion may contribute to slowing economy.

Interest Rates and Stock Prices
The stock market closely watches interest rates for signs of change. Lower rates mean more money in the economy.

P/E is most Important Stock Valuation Tool
A stock's P/E is a key valuation measurement investors use to determine how much to pay for a stock.

Understanding What Effects Stock Prices
Investors are buying future growth when they invest in stocks.

Stocks Subject to Market Cycles
The stock market is subject to periodic sell-offs that do not necessarily indicate a long-term downward trend.

Companies with too much Cash: Good Stock Buy?
When a company has too much cash, how it deals with the situation tells you much about whether this is a stock to own.

Fortune 500 'Gushed Profits'
Large companies have the resources to take advantage of global market conditions and their stock can reflect that strength.

Stocks Can't be Long-Term Forever
Stocks are a long-term investment and you shouldn't hold money you'll need in five years or less in stocks - they are too volatile.

Avoiding Pump and Dump Stock Scams
Pump and dump stock scams can cost you dearly if you fall for their hype.

Preferred Shares of Stock Not so Much
Preferred stock has some unique features, however don't let the name fool you, these shares leave much to be desired.

Betas Aid in Stock Trading - But which Beta do You Use?
Betas tell you a lot about a stock's volatility, however checking multiple web sites you may find different answers to that question.

Don't Worry about Average Return for Stocks - Focus on Best Stocks for You
Don't fall into the trap of expecting a 10% return from your investments because that's what the market's averaged.

Stock Buyback can Benefit Shareholders
A company repurchases its stock for a variety of reasons, not all of them are good. However, a stock buyback can benefit stockholders by increasing the worth of their shares.

Stock Sectors
Investors break the market down into sectors by company business. These sectors make is possible to compare how a stock is doing relative to its peers.

Understanding Stock Diversification
There two forms of diversification you should know to make your portfolio less volatile.

How the Fed Affects Stock Prices - What the Fed Does
The Fed is the single most important federal agency for stock market investors because its actions directly affect the markets.

Checking on Market Index Futures - What will the Market do Tomorrow?
Market index futures give you a clue about what traders think the market is going to do the next session.

Share Terms - Understanding Authorized, Restricted, Outstanding, Float
It is important for investors to understand the different terms used to describe shares of stock such as authorized, restricted, treasury, float and outstanding.

Inflation Dangerous to Stocks - Inflation Erodes Purchasing Power
Inflation is a major threat to the stock market and investors, especially those heavily invested in fixed income securities.

Cyclical and Non-Cyclical Stocks - How Cyclical and Non-Cyclical Stocks Differ
Cyclical and Non-Cyclical Stocks react differently in changing business cycles. Knowing the difference between Cyclical and Non-Cyclical Stocks can make you a smarter investor.

Real Rate of Return on Investments - Calculating the Real Rate of Return on Stock and other Investments
The real rate of return on an investment factors in inflation and taxes to give you a clearer picture of how much your purchasing power has increased.

Understanding Indexes - What Market Indexes Tell Us (and What they don't)
Market indexes like the Dow, S&P 500 and Nasdaq Composite, can be useful tools if you understand what they do and do not represent.

Dividends - How Dividends Make You Money
Dividends are a way companies distribute a portion of their profits to shareholders.

Stock Splits - Are Stock Splits Good for Investors?
Stock splits occur when a company splits its outstanding shares, usually 2 for 1. This reduces the share price and increases the number of outstanding shares.

Stock Buybacks - Are Stock Buybacks Good for Investors
Stock buybacks can be a good deal for stockholders or a smokescreen to hide weak financial ratios.

Finding Money to Invest - How to Find Money in Your Personal Budget for Investing
Here's a simple formula for freeing up money for investing out of your personal budget.