subject: Essential Information In Stock Investing [print this page] Stock market investments present one way for an individual to earn money even with the minimum investment. However, one or two items need to be weighed comprehensively before one pursues such an investment.
There are several options a potential financier has to buy stock, or partial ownership in a company. Potentially the hottest is the buy-and-hold approach. Under this system, a speculator simply holds on to shares regardless of share price. The shares are ultimately sold only after the individual has earned enough to buy a house, secure his/her education, or retire. One benefit to this methodology is that it entails few transaction charges because of the limited stock activity. Buy-and-hold backers are also ready to pay lower capital gains taxes on their investment. Other approaches include short-term trading and direct investment plans
Investors must figure out where their target stock is listed and its stock symbol to ease any exchange. Microsoft is listed on the NDX as MSFT, while General electrical and Hewlett-Packard are on the New York Stock Exchange under the symbols GE and HWP respectively. For some non-US firms, UK cell-phone giant Vodafone is noted on the London Stock Exchange as VOD.L, game-maker Nintendo has a Tokyo listing as 7974, and Germany's Siemens AG appears on the Frankfurt market as 723610.F.
First-time market investors will speedily realize how business and industrial stories influence share price movement. A sales increase, higher revenues, legal actions, a management revamp, and a new product are among internal factors that can drive share costs. On the other hand, the rise of new market rivals, a change in govt. policy and inflation and other commercial reports are among external factors that can affect stocks.
Today's information technology-driven' new economy' has made it possible for some companies or particular industries to better use the market than their opposite numbers. First-time stockholders would do well to spot these 'niche' players and consider their stock. However, such selection should be backed up by research, especially on a target company's management structure, expansion plans, product development and monetary results.
Since stock market investors buy shares in a company expecting to gain, it is imperative then that they review the monetary reports of their target corporations to establish takings expansion potential. The Securities and Exchange Commission requires these yearly disclosures, which are made on different months, as companies generally do not cover the same calendar or financial year. Investors should also note that some companies, such as sears and other outlets, often have higher takings in quarters instantly following the vacations.
by: Mike Enriquez.
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