Stocks, Forex and Other Money Matters

US, which already has a trade deficit of US$57.9 billion at end 2007, announced on 13 Mar 2008 plans to lend up to US$200 billion of highly liquid US Treasuries for collaterals that include unwanted mortgage notes.

Popularity: 29% [?]

There are abundance of opportunity to make money day trading and there are 5 common markets to consider:

1. Stocks
In simple definition, stocks are a share in the ownerhsip of a company. You can buy or sell stocks on an exchange. The investing legend, Warren Buffet dominates this market but don’t let that get to you. You can still make money from stocks. If you are new to investing or day trade, you may want to consider your local stock market first. You may want to consider ETF (Exchange Traded Funds) if you are risk averse.

2 .Options
Options are a leveraged financial instrument. Its price derives from an underlying security (stocks or index for example). They give the buyer of the options contract the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. Unlike a stock, options contracts have expiry.

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Popularity: 90% [?]

WHAT IS FOCUS INVESTING?

Sometimes expert advise just makes your head spin, doesn’t it! How many times have you heard an expert touting the advantages of risk-reduction through diversification. Of course, the biggest proponents of diversification, and those with the ad spending budget to brainwash millions of investors, are the mutual fund or unit trust gurus–from banks to Internet fund-selling sites, all preaching the indisputable value of a widely diversified portfolio.

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Popularity: 41% [?]

Want to own part of a business without having to show up at its office every day? Or ever?

Stock is the vehicle of choice for those who do. Dating back to the Dutch mutual stock corporations of the 16th century, the modern stock market exists as a way for entrepreneurs to finance businesses using money collected from investors. In return for ponying up the dough to finance the company, the investor gets shares of stock-specialized financial “securities,” or financial instruments-that are “secured” by a claim on the assets and profits of a company.

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Popularity: 44% [?]

The illegal buying or selling of securities on the basis of information that is generally unavailable to the public.

An example is the purchase by a director of shares of his or her firm’s stock just before the release of surprisingly good earnings information.

Popularity: 37% [?]

In-depth study of the business behind the stock price, which may include analysis of balance sheets, profit & loss, management skills, competitive market advantages, use of capital, and many financial ratios.

Fundamental analysis attempts to determine the true value of a security, and, if the market price of the stock deviates from this value, to take advantage of the difference by acquiring or selling the stock.

Popularity: 32% [?]

The investment strategy of purchasing securities and holding them for extended periods of time. Investors using the buy-and-hold strategy select companies on the basis of their long-term outlook. Such investors are not influenced by short- or intermediate-term movements in the price of a security. Such long-term investors typically focus on business fundamentals rather than market emotions.

Popularity: 31% [?]

The value of a security, justified by factors such as assets, dividends, earnings, and management quality. Intrinsic value is at the core of fundamental analysis since it is used in an attempt to calculate the value of an ongoing business, and thus its proper stock price. Intrinsic value can vary widely among different analysts. Warren Buffett uses a method that involves discounting the future cash earnings of a business to current value (discounted cash flow).

Popularity: 34% [?]

Stocks which tend to see their share prices (and profits) rise and fall in regular (although not regular enough to easily predict) patterns. The patterns of rise and fall are often tied to economic growth and contraction.

Examples include basic materials manufacturers like steel companies or aluminum companies.

Popularity: 27% [?]

The PE ratio is undisputedly the most used ratio in the financial industrial.

So what is PE ratio?
PE equals share price / eps

Example:
XYC company
Price : 31 cents
Current Earnings = USD118,
No. of Shares = 400 millions
Earnings Per Share (eps) = 118 millions/400 millions = 5.9c

Therefore, PE = share price/eps = 31c/5.9c = 5.25

Popularity: 49% [?]