Archive for 'Stocks'

Stock

Posted on October 15th, 2008 by admin, under Stocks.

Stock is issue security fixing the rights of its owner (shareholder) on reception of a part of profit of joint-stock company in the form of dividends, on participation in management of joint-stock company and on a part of the property remaining after its liquidation.
A shareholder (or stockholder) is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Companies listed at the stock market are expected to strive to enhance shareholder value.
Shareholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned) on matters such as elections to the board of directors, the right to share in distributions of the company’s income, the right to purchase new shares issued by the company, and the right to a company’s assets during a liquidation of the company. However, shareholder’s rights to a company’s assets are subordinate to the rights of the company’s creditors.
Shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.

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Ordinary shares as the tool of investment

Posted on July 4th, 2008 by admin, under Forex Bonds Options and Futures, Stocks.

This article describes ordinary shares and investments basics to Forex players.

Ordinary shares attract Forex investors for different reasons: it is an opportunity to earn much, if the rate will “fly up”, for owners of large packages of dividends can provide a permanent source of income. Considering variety of shares traded on the stock market (more than securities 20000 in U.S.) – it could be argued that whatever is investor’s objective, he could always pick up the paper, suitable for his investment strategy.

The basis of attractiveness of shares is that their owner is entitled to participate in profits of the company. Naturally, in case of rapid growth of company income rate of its shares also grows - the history of the stock market knows many examples when the stock price increases in the tens and hundreds of times by year or two. Bad aspect is that the investor is not only not guaranteed any level of profitability, but simply keeping enclosed means in safety. Stock market knows a lot of stories when strongest market falls and bankruptcies of largest companies such as the crisis of 1987 and 1999-2000 in USA, the Russian stock market collapse in May of 2006; Enron collapse and bankruptcy of YUKOS.

Stock indices - Dow Jones (S&P500,NASDAQ) have stable growing momentum in the long scale.

Difficulty, therefore, lies in correct selection of shares for inclusion in a portfolio of the investor.

 

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Basic concepts of investing

Posted on June 19th, 2008 by admin, under Stocks.

Investment is any tool, in which you can put the money, hoping to keep or to multiply their value and (or) to ensure a positive value of income. In the broadest sense investment is mechanism necessary for financing the economy growth.

Free money can not be considered an investment because the value of money will gradually be absorbed by inflation, and thus there will be no income. Bank deposit is considered an investment because it guarantees a certain income.

Securities or ” stock values” are investment instruments, confirmative a debt obligation (bond) or right to participate in the income of company (action).

Investing in “real assets” are investing in acre, real estate, in own business. A direct investment is buying of securities directly by an investor. Indirect investments are investments through collective funds.

The risk level is the most important characteristic of investments. In the area of finances risk means possibility of adverse end of investing. This is possibility of not to receive supposed profit or to receive loss. As a rule, higher risks are peculiar to high-yield instruments of investing, and vice versa – low risks usually means low profitability.

Investments are divided into “short-term” and “long-term”. Short-term investments are usually up to a year, and long-term ones – more than a year. We are entitled to expect a higher profits on average in the case of long-term investments.

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