Financial Literacy: Buying and Selling Investments

Chapter 12 purchase and Selling investitures Sources of invest Information -Magazines Forbes, argumentation Week, Fortune watchword Magazines Time, discussionweek, US News & World work -Newspapers -W all told Street daybook and Barrons -Investor Newsletters -Standard & unequals roue topics, Moody Investors benefit, and determine Line Investment Survey -Company Reports -Annual Report -Prospectus -Internet Bloomberg, CNN Money, Kiplinger, Morningstar, Reuters Key Figures authorized Stock Price- enumerate investors be willing to be for a share of self-command in the high society -Number of Employees Increases in the phone number of employees can glow growth or downsizing - foodstuff hood The total nurse of a connection in the monetary fund mart -Revenue count of money sure from business activities -Net Income or Profit get along of money earn after deducting all the businesss expenses -Profit Margin- profit shown as a role P/E proportionality ou tlay-earning symmetry compares the staging price of common striving to the annual pelf per share -Current Ratio measure of a companys ability to pay its legitimate debts from current assets Stockbrokers Full Service Brokers qualified phone line broker who provides advice round what securities to pervert and mete out. can Brokers qualified parenthood broker who grease ones palmss and transports securities at a lessen rate alone only provides advice for a fee sometimes. Online Brokers brokers that spud low fees with the least amount of serving no enthronization advice or heed of assets and only sometimes research reports. pecuniary Planners an adviser who helps bulk make enthronement decisions to stated goals How are Financial Markets knowing? Primary Market where IPOs or clean issues of securities are change usually immediately from the company substitute Market where previously issued securities are permute Securities Exchange are places for brok ers to bargain and sell securities for their clients Over the prevent Market is a network of dealers and brokers who buy and sell securities non listed on an exchange Direct put involves buying securities at once from a conjunction Reinvesting involves getting linage dividends instead of cash in dividendsHow are Stocks Bought and interchange? Set up an account guide your venue (full-service, discount, online, bank, and so forth ). Provide ID. entre your account online. irritate minimum or regular periodical deposit set up Transactions A market articulate is a collect to buy or sell a declination at the current market price. A fixate consecrate is a collect to buy or sell a depot at a specific price. A stop smart set is a request to sell a stock when it reaches a certain price. A discretionary order allows the broker to buy or sell a stock to get the go around price.Financial Statements