Financial Literacy: Buying and Selling Investments

Chapter 12 Buying and Selling Investments Sources of place Information -Magazines Forbes, Business Week, Fortune word of honor Magazines Time, Newsweek, US News & World Report -Newspapers -Wall Street Journal and Barrons -Investor Newsletters -Standard & Poors timeworn Reports, Moody Investors Service, and Value Line Investment Survey -Company Reports -Annual Report -Prospectus -Internet Bloomberg, CNN Money, Kiplinger, Morningstar, Reuters Key Figures Current Stock Price- follow investors are willing to pay for a share of ownership in the site -Number of Employees Increases in the scrap of employees can reflect growth or downsizing -Market Cap The total value of a company in the armory foodstuff -Revenue amount of money received from business activities -Net Income or Profit amount of money earned after deducting all the businesss expenses -Profit Margin- profit shown as a fate P/E Ratio price-earning ratio compares the snitching price of common neckcloth to the annual remuneration per share -Current Ratio measure of a companys ability to pay its reliable debts from current assets Stockbrokers Full Service Brokers qualified stock broker who provides advice about what securities to buy and sell. Discount Brokers qualified stock broker who buys and sells securities at a reduced rate but only provides advice for a fee sometimes. Online Brokers brokers that energise low fees with the least amount of service no investment advice or management of assets and only sometimes research reports. Financial Planners an adviser who helps people make investment decisions to stated goals How are Financial Markets knowing? Primary Market where IPOs or new issues of securities are sold usually directly from the company unoriginal Market where previously issued securities are sold Securities Exchange are places for brokers to buy and sell securities for their clients Over the previse Market is a network of dealers and brokers who buy and sell se curities not listed on an exchange Direct Investing involves buying securities directly from a corporation Reinvesting involves getting stock dividends instead of cash dividendsHow are Stocks Bought and interchange? Set up an account Choose your venue (full-service, discount, online, bank, etc. ). Provide ID. Access your account online. energise minimum or regular monthly deposit Place Transactions A market order is a request to buy or sell a stock at the current market price. A limit order is a request to buy or sell a stock at a specific price. A stop order 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 best price.Financial Statements