Who pays what what when investing in a house with a partner and one person lives at the property?
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Landlord
You invested in a condo? Good luck with that one. Of course you did not invest all that much, not much to lose.
It is rp to the investors how they want to handle it. Since payments will not pay down principle for years I would say the one living there pays the mortgage 100% and any upgrading (waste of money in a condo) would be split 50/50 Tax deductions split 50 50
Unless you are the one living in the condo you should refuse to do this. You will be just flushing your 15k down the toilet.
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taco
whoever occupies the residence should pay for all the upkeep and modifications. Who ever resides there should also be making a payment close to what the house would lease for as they are living there. The other partner if this is a true investment should make a contribution to match the difference in the lease payment and the mortgage:
Investor 1: Pays Lease $1000. actual mortgage :$800= surplus $200
Investor 2: Pays matched surplus $200.
Actual Mortgage Investment Payment $1200There are no laws on how to invest with a partner, just a whole lot of people who will tell you not to.
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Jo
That should be an agreement between the partners. There are no "rules" for that.
If each is putting equal amount down and expect equal amounts when sold – then everything else should be equal as well.
If one is living there – possibly the reasonable amount of rent could be deducted from that partners share.
However, it’s best to keep in mind that if one is living there – there is less chance of vandalism – so that might be worth something. And whoever is living there is doing so temporarily and will have to move and pay moving expenses.
The partners should agree to all of this in advance – in writing – so there are no misunderstandings and hard feelings later.
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Bradleyj
Agree, no hard and fast rules – but generally I would expect the person living in it to pay for all the upkeep.
How to invest money in the stock market?
Thanks so much!
I was planning on reading a book, i just wanted a general guideline from people who answer questions on here. I thought that was the point of this fucking website.
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Angry Bird
Do not skip reading a good book !
This way you can know all the basics such as
what are mutual funds, etf’s, bonds, stocks, etc.These books are easy to understand.
And if you try to learn all this on the net, you’ll just find yourself re-reading the same information over and over again. A waste of time.
The book will also have a chapter on different brokerage accounts with details on minimums and commission costs. -
Martin
Have you thought about investing money in a managed forex service. I started at the end of October last year. I have made a website about the returns I am getting. You don’t have to do anything. The traders do all of the work for you. The returns are fantastic. 10,000 dollars invested 4 years ago would now be worth over 240,000 dollars. 9.16% monthly returns over 4 years is the average. Even half of that over the last couple of months has meant I don’t have to go to work anymore.
Check out my website if you are interested
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I Like Turtles
Let me get this straight. You are too lazy to pick up even a simple book and read it and you want everyone on YA to tell you EVERYTHING on how to invest. Man, you better pray for great luck because you are going to lose your ass in the market. Investing takes work and the willingness to learn. Being a lazy slackass won’t work.
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Jasmin
Best way to invest regular every month in stock market you never loss your money another option is mutual fund SIP it’s give higher return in long term.
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Raysor
The problem is, as a beginner, you don’t really know what to ask. The best way is to read a basic book on investing. Then ask questions. A forum is probably better because once you ask a question the answer throws up more questions! Plenty of good forums, this one is UK based but it’s ll fundamentally the same. http://www.shareworld.co.uk/index.php/forum/
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muncie birder
Go to your library and see if they have a copy of "Investing for Dummies" That book will get you started. You can also get a copy from Amazon, I think.
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Buzzingstocks
Read Book on "Art of Stock Investing – Indian Stock Market" @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html
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Stock Trading Warrior
You’ll need to pick a stock market strategy, know how to find good stocks, determine the general market trend, figure out how much to invest in each stock, have a written out plan, know when to get out of a stock, track your progress and have an account with an online stock trading broker.
You’ll basically need to create your own stock trading plan to be really successful. Once you have your system in place all you have to do is follow it which can sometimes take some discipline.
How does compound interest grow even though you stop investing more into it?
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D J
Compound mean put together, so it is putting the interest you gain one month together with your principal and then next month your interest is higher because you have a larger principal. so on and so forth.
GL
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Mike Michael
the interest is added to the principal at set times
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John W
It’s called exponential growth. The sooner you start the better off you’ll be. You can’t catch up later in life just cause you’ll be making more.
How do you invest money in the stock market?
How do you invest money into the stock market?
Are there any qualifications? Do you have to be a certain age?
Thanks!
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Kelly
Hi Friend now days there are number of commodity market site. which provide you share tips but as a fresher you have to choose which site is batter the one who will help you so this I can recommend you
http://www.commoditytips.com/ as this is the same site which i am using for getting helpful information. -
pasta fa zool
Send the money to me and I’ll make sure to invest it for you.
Only kidding of course. I believe you have to be 18 yrs of age.You can invest in various ways at a commercial bank, a brokerage agency, on the internet (e-trade etc.).
There are brokers in franchised agencies all over the USA.
there are different types of investments, such as commodities like oil, produce, pigs & businesses like you see at the NYSE (New York Stock Exchange).
Buy the Wall Street Journal & see if it makes sense for you.
A lot of people got rich over the course of the past 200 yrs of the stock market in America.
More got rich than lost money, but essentially it is gambling on a business & better than horses or craps or Las Vegas. -
Pari
Investment is a concept of restoring the money via purchasing of assets, lending loans and fund terms with well planned expectation on favorable future returns.
We can find a variety of investment options that can support you through the money handling process that secures your future in making profit.
Understanding the basic concept and analysis on the investment plans available followed by implementation of the investment strategies make great proceeds on drawing returns.Mutual Funds……………………
Mutual funds are collective investments undertaken by commercial entities.
They collect funds fro m individual and institutional investors and invest them in various stock options.
Mutual funds are also less risky when compared with stock markets.
Is it possible to make money investing in forex?
thanks
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Mary Thomson
In everything we do, we earn money because we know how. And to learn how, you should study. more or less 95% of all new traders fail especially in the first 12 mos because they just buzz in the market without really having a no how. If you don´t have enough knowledge, it is more likely that you will lose but if you know what you’re doing and best – experienced with it, then you will most likely win! but it can never be an always win trdes but it’s nice to have a high percentage of a win over lose.
Read some magazines, online news (but beware of any scammers that only links to their affiliate sites), or watch videos from http://youtube.com (anywhere). Also, there are a lot of free demo accounts where you can try a trade exactly like a live one (but of course there are a difference between a live and a demo, and one factor is your emotions). I use these: http://exeliafx.com, http://forexvps24.com
after your demo, trial and error experience… see if you earn pips (at least 50 then you can try to go live)…
Good Luck to you.
btw, here’s a forum, great for beginners: http://forums.babypips.com/
here’s another one (so you can ask expert traders there for further queries): http://www.forexfactory.com/forum.php -
Eddie W
You can make or lose money investing in anything. The currency exchange rate fluctuates, the traders are taking the advantage of the fluctuation to convert from one currency to another.
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Dave W
It is possible to make money trading currencies, but it’s also possible – and more likely – that you’ll lose money doing it. If you know a lot about world politics and finance and are good with math so you can always understand the risk you’re taking in any trade, maybe you would do OK. If not, my opinion is that you’re more likely to lose money than to make it.
I have significant experience in investing in the stock market, but I avoid currency trading. I think the risk is too high and the knowledge needed to be successful is more than I have.
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Rajan
Definately u can make a profit by buying currency at a lower rate in one county and selling it in another which is called as arbritration . Then r certain books on foreign exchange please refer those books to learn foreign exchange
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Edmund Peh
Trade with a reasonable stop loss or risk a fixed amount of money. Forex or any other financial instruments are used as a form of risk transference. When you risked your money, there is a certain amount of profit that is expected.
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revsuzanne
It isn’t a company… it is Foreign Exchange. You trade currencies.
Right now, there is no longer a currency safe-haven because the last one disappeared when the Swiss decided to peg their currency to the euro.If you have money to invest, by all means, purchase physical silver and gold and store it yourself.
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Ron Corporon
It is very difficult to make money from forex trading. Even the professional hardly make it. (very few forex mutual fund exist)
It is very difficult to predict the behavior of currency exchange because they are so many factors affecting the currency movements (economic, behavior, speculation…).
On the internet, a lot of company are proposing you forex trading, saying you can make a lot of money and so on. It is scam, these companies make a lot money on transaction fees. -
Jeremy
It is possible but you have to study a lot (a really lot) to become a successful trader able to earn money on Forex. You have to understand the basics and probably from the beginning you won’t be very successful but it’s only matter of time.
You can find some related information here: http://www.wheretoforex.com -
M.Rabea
Well, it’s not impossible
Trading Forex requires a specific set of skills and experience that is not easy to acquire.You need trading skills, money management skills and skills to control your emotions. For you to be successful and make money trading Forex you are required to spend some time reading and learning all you can about this business. At that stage please don’t buy any fancy products or robots because they never work. All the information is available out there for free just search for it and you will find plenty of material.
Test your skills regularly on a demo account, make that demo funded with only $2-$5k so it feels real when you trade on that account. Once you have consistent results for at least 6 months then you can start considering trading with real money.
Another way to go is to hire a professional Forex trader to manage your account. You will skip the learning curve and you can start making money right away just make sure that the account manager or the expert you pick is a real expert.
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Hitesh
Yes it is possible. But only if you treat this as a business not a get rich quickly scheme or gambling.
Forex trading or in fact any type of trading like Stocks, Commodities or Energies have to be done in a professional way i.e. we should have the following qualities.
1) Self Control like Patience and getting control over our Emotions.
2) Money Management.
3) Properly build Strategy with Back tested results or Tried Successful Paper Trading.there are many more but these are the pillars to get success.
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rpu
yes. definitely. U have to use your brain though. Use a forex trader who provide a chance to practice and also a little amount to invest in the real market before you use your own money. I know only one such provider. In other providers ask more and more complicated things never give anything to invest in real market.
http://www.marketiva.com/?gid=40309
marketiva is the best forex trader available and it also offer 5$s free to do live forex trading. And 10,000$ to prctice in demo account. And do not forget to veryfy your account by providing necessary details ! -
Andy elle
It is not a company, there are many different forex brokers, some which will be suited to your needs more than others. As you have very little understanding of forex, I would suggest that you do not even attempt to open a real trading account. You would be best suited with a broker like eToro, their speciallity is for new traders and their pla.tform is not over complicated. Another plus side is that they have an unlimited demo account, which would be a major bonus for someone with such little experience
I want to get started in investing and stocks. Where can i go to learn?
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Kenny
The term ‘Stocks’ is what the companies are referred to as that you can buy ’shares’ of.
It is a very risky business so it is a good idea to practice trading in a virtual stock market game first. This way you can get a bit of experience and learn what you are doing before risking any cash.
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IHAVEQUESTIONS
School…
Be warned, a common misconception is that investing in stocks is essentially a way to get rich. This is pretty much never the case. You should only invest in low-risk stocks, such as Canadian banks, that pay good dividends. Don’t go investing in some company with "potential", as this is an easy way to lose your money.
Investing in stocks is simply about saving to maintain your finances and current lifestyle, not to improve your financial standing with a significant increase in wealth.
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ag318pun
Go to your local library and read all you can about investing.
If you want to invest right now, but don’t know what to purchase,
you see a Financial Adviser who will invest your money for you
in your best interests.
Buying a stock:
Company xyz stock is priced at $20.00 a share.
You have $1000.00 that you would like to invest into XYZ.
So how many shares do you get? Answer 50 shares.
If the price of a share goes up, you make money.
If the price of a share goes down, you lose money. -
TradeBrother
What you need, if you are looking to make sound return with high probability is have a reason for investing. I only do value investing now and personally stock spinoffs of the best pick as these usually double or half in value.
Basically, the strategy here would be to purchase a Put and a Call option on a certain SpinOff stock and be ready to make serious money.
I hope that helps, if you want a better understanding check the link below. This site will show you everything you need to know. For options trading, just learn from YouTube. It’s the cheapest and most realistic way. Most other places will just try to take your money.
Just remember, these assets are far less known about, so that’s where you need to be…
Do you think it's ok to start investing in stocks and bonds? I want to plan for retirement.?
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John W
If you’re not retired and you’re working then it’s a good time to be investing in stocks and bonds. As long as you have a balanced portfolio, you can gain from the declines in the market by rebalancing so a market downturn is no reason to stop investing. Indeed when people stop during the difficult times, they make their recovery all the more difficult.
An example of rebalancing would be if you had a $1,000 portfolio and you had a balance target of 50% in stocks and 50% in cash therefore you have $500 stocks and $500 cash. Let’s say the stocks dropped in half, you now have $250 stocks and $500 cash so you rebalance by purchasing $125 in stocks giving you $375 stocks and $375 cash. Let’s say the stocks goes back to it’s original price, you then have $750 stocks and $375 cash for a portfolio value of $1,125 all while the stock price is essentially unchanged. Similarly had the stock doubled and then halved, you would’ve gone from $500/$500 to $1,000/$500 rebalanced to $750/$750 and dropped to $375/$750 for a portfolio of $1,125. Frequent rebalancing results in buying low and selling high but due to the commission costs, you often only rebalance once a year.
Now Ben Graham said to invest 45% in equity ( stock ) and 55% in bonds. Markowitz said the lowest risk is 25% equity, 75% bonds which is safer than 100% bonds and that 50/50 has the same risks as 100% bonds but much better returns. Claude Shannon at MIT did a mathematical proof that 50/50 was the optimal so why do they say to be aggressive when young and offer aggressive funds of 80% equity or more? Ben Graham said to never go below 25% equity and never above 80% equity so many people follow the advice of investing 100 – their age in percent in equity thereby moving from 80% to 25% equity in a straight line but why? Your continued contribution is why, you are contributing a set sum from your paycheck each and every month, this cash flow is like the payments from a bond so you in fact already have a bond investment as secure as your job for as long as you contribute to your investment. You can even calculate it’s value if you have a suitable discount rate; as you can’t trade in your job for cash, that discount rate should at least be equivalent to the return of your investments, currently we would expect a return of 5.4% per annum from stock market investments so using that as a discount rate, putting $466.66 per month ( maxing out your IRA or TFSA if you’re Canadian ) from the age of 32 till you’re 60 would be the same as having $466.66 * ( 1 – 1 / 1.054^28 ) / ( 1 – 1 / 1.054^( 1 / 12 ) ) = $82,238.96 so you can invest more aggressively in equity before you reach the 50% equity and 50% bonds mark if you consider your continued contributions as money invested in a bond. However your rebalancing would be limited to the contributions themselves so you can only take so much advantage of a down market which normally isn’t bad as you would achieve the ideal 50/50 market faster by investing all equity but these are times when a downturn is quite possible so it may be better to go with Ben Graham’s 80% equity till you’re balanced.
You can achieve a balanced portfolio by investing in an appropriate mutual fund, investing in a combination of a low fee index fund ( all equity ) and a low fee bond fund, or selecting your own investments. Annuities are often offered by insurance companies and have an insurance premium involved so you are paying for a benefit you hope never to collect. It is wise to have an emergency fund against the unknown so as not to make a bad financial decision but an insurance policy is an expensive and qualified way to do it.
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Calvin C
go to american college web site and look for a ChFC near you. Expect to pay for your education
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muncie birder
It would be a good plan to avoid annuities. They have a very bad reputation that is well deserved. I am retired and I did plan for my retirement by investing in stocks and bonds. If you have earned income a Roth IRA or a traditional IRA is the way to begin. You can put up to $5000 a year into one. A traditional IRA has the advantage that you do not pay taxes on the money you put in but you do have to pay taxes on everything that you take out. A Roth IRA requires that you pay taxes on what you put in but do not pay taxes on the amount taken out. Personally, I prefer the Roth IRA but from the analysis that I have done I can really not see any distinct advantage of one over the other under current tax law. Not all of your investments should be within an IRA. Some–at least 1/2–should be outside so you can have access to the money if the need arises. You do not have access to funds in an IRA without penalty until you are 59.5.
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Michael
I thinking that starting now is a great idea. Before you do anything, you should start learning as much as you can about investing. I could recommend many books but the only one that is a Must Read is the Intelligent Investor by Benjamin Graham. Warren Buffett said that this book is the best book ever written about investing and I agree with him. Also, check out the following forum: http://www.bogleheads.org/forum/index.php This is a great place to learn about investing. If you provide your details regarding time horizon, risk tolerance, assets, preferences, etc. you will get many thoughtful suggestions.
Regarding annuities: they are usually very expensive from a fee perspective. Fees should always be a consideration when making an investment.
Good luck!
http://www.financeexamtutor.com -
Audrey
One of the basic rewards of stock investing is the chance of a huge returns. The value of stocks raises as company grow large. The possibility of profit is very high because of the trend of the market to have an upward pattern if an investor chose the right companies to buy stocks from. In a shorter period time he may gain profit more if the investor traded constantly. Additional benefit of investing in stocks is accessibility. At this point, there are many stocks existed in the market. With appropriate analysis and research of the stocks and the companies that issued them via alpha.forcastix.com, anyone with enough capital can get an ownership of stocks.
Other than that, stocks traded in the market also have better liquidity than other securities offered. It can be easily changed into cash by selling the equities with various traders in the market. Lastly, investing in stocks minimizes the rate of taxes from capital profits.
Why has the stock market gone down recently?
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Kasey C
As the other guy said, it’s mainly a problem in Europe. Basically, Greece economy is about to collapse and declare bankruptcy. Several governments have money to lend it, but Iceland wants collateral, which Greece can’t afford. So apparently someone’s making a deal that other countries would pay Greece’s collateral. If the deal doesn’t go through, and Greece declare bankruptcy, or its parliament can’t agree on repayment plan for its debt by cutting even MORE spending (such as pensions, etc.) (which the creditors insist on, to make sure Greece CAN repay the debt in the future) then Greece will fall, and other countries on the brink, such as Italy, Portugal, and Spain, will likely go as well, and that’ll pretty much mess up the European Union, and affect a MAJOR piece of world economy.
That is called uncertainty, and that is risk, which affects EVERYTHING, such as travel, import export, and so on, even if it is on the other side of the ocean.
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Mr.2can
Right now the market is split 50/50 between bears and bulls. 50% of the people out there think the markets are oversold and now is the time to buy. The other 50% think the recent declines are just the first part of a bear market (ie. we still have another 20%, 40% or even 60% down to go).
The reason everyone is so split is because no one right now knows what the state of the global economy is. Corporations seem to be doing ‘ok’, but they aren’t hiring. Europe is on the brink of financial collapse (but some would say the politicians and bankers will find a way to save it). Some are saying things could get far worse than in 2008, others are saying this is NOT a 2008 scenario. Truth is, no one knows.
part of the problem is that no one knows what the banks balance sheets around the world are. The banks have kept them hidden from public view since 2008. So they might have trillions of debt (in which case they are f8cked) or they might only have a few billion in debt (in which case they are in good shape).
Point is, no one knows. If Greece collapses and causes Spain, Ireland, Italy and Portugal to collapse, then the markets could easily drop 20% in a single day at some point. Banks would end up going bankrupt all around the world.
If anyone could tell you with certainty which was the market was going, then the market wouldn’t be swinging up 5% one day and then down 5% the next.
This is a VERY risky time to be in the market. It’s safe to say at some point in the near future the market will either rally very hard (up10-15% in a couple days) or it will crash really hard (down 10-15% in a couple days).
it all depends on things that have nothing to do with the fundementals of the various stocks themselves. It’s all macro variables like sovereign debt and bank debt that is still in the system and which know one knows the full extent of.
Personally, I think your dad is taking a huge gamble right now. While the market is technically cheap, it can still get much cheaper.
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a nobody
I like to look at the stock market from a statistics point of view. I have never had any formal training in statistics, so people will be able to find errors in the way I do things, but even with the errors, this works for me.
Look at a 2 year chart of either the DJIA or the S&P 500. This is what you will find:
On 7-7-10 the market went up significantly. The entire move took about 3 weeks. (I try to focus on the major moves.)9-1-10 major move up.
12-1-10 major move up.
3-16-11 major move up.
4-20-11 major move up.
6-28-11 major move up.
8-23-11 major move up considering the poor market sentiment.Each move is amost exaxtly 3 months apart. The move in April was a bonus and the move in August was expected in September. It only missed by a couple weeks. The next imprtant thing to notice is that 3 weeks before each of these moves, almost to the day, is a major decline in the market. In my opinion, the market is too rhythmic to blame moves on events. Events that are bad for the economy don’t happen just once every 3 months.
With that being said, I am looking for another major move up to begin around December 1. This would fall in line with the "Santa Clause rally". Of course, that also means I am looking for a major move down in the first couple weeks of November. Of course, you can turn that around. Expect a major move up about 3 weeks after each significant decline.
What does the Bible say about investing?
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PastorsRUs
There are passages where examples of wise investments are prominent. The proverbs 31 woman considers a field and buys it. The other two in that parable you mentioned grew their initial "stake". The principle is there, and there’s nothing wrong with being prudent in this way. That’s called being a wise steward. What’s not prudent is the financial system we now have globally, which is not based on tangible assets like the biblical examples clearly indicate. Again, there’s nothing wrong with working hard, saving money and prudently investing your tangible assets to grow them in a Godly way.
The one who buried the talent and returned it intact received disfavor and lost the talent because he literally did nothing with it. He was a steward of those funds, and as such, he was not only to preserve the capital but to increase it as best he could. Instead, he just preserved it in a safe place. The point is that God gives us spiritual gifts and expects us to grow them and not bury them.
The parable of the pounds and the talents is in Matthew 25:14-30.
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I DJ Weddings
Jesus saves, Moses invests"
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Bob
ReligionS are against making profit/ barrowing cash.
What is a smart way to start investing in stock?
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Aubrey
I’ve answered questions like this quite a bit recently so I will tell you the same thing I told them The method you chose to buy stocks depends on how active of an investor you would like to be. ETFs are pretty much set and forget, if you find a good index ETF such as SPY (tracks the S&P 500, which tracks 500 well performing companies over many market caps). Mutual funds require a little more homework, and you have to remember that you are buying a fund manager, and not a basket of stocks as you do with an ETF. That means doing homework on the fund manager is key, as they can allocate the money however they choose.
Buying individual stock is the most time consuming but IMO the most rewarding. This is because both ETFs and Mutual Funds charge fees; this is also because buying individual companies gives the buyer the greatest feeling of satisfaction when they love what they own. Its like working on your own car or house; it takes research and effort but satisfying when you know the job is done right. Building off of the earlier strategy to diversify, many people begin by using 90% of their stock money and put it in ETFs and Mutual Funds, and use 10% as "play" money; money they use to buy individual stocks. Over time as comfort level rises, they will use a greater percentage on individual stock.
Finding quality stocks is not as hard as it was, say, 30 years ago. This is because the internet is littered with data about these companies. It actually causes a bit of information overload, but if you know what to filter then its not too bad. There are a number of sites that give you data, and less sites (like the valueline.com) that give you actionable information, and even less sites that do so for free. Myself and my partner have built a site which is in the final category, giving simple to the point stock recommendations based on sound fundamental analysis that has been used for over 100 years for free. (forcastix.com) I encourage you to look around and give me a kudos if you found it useful.
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ag318pun
Its very smart of you to becoming an investor in the stock market
a such a young age, But I have to tell you that before you do any
investing, you must educate yourself to the world of investing or
you surely will lose your money quite fast. Investing in one stock
is dangerous. Most investors have 10 or more different stocks in
their portfolio. If you are working and have an income, make sure
you use a Roth IRA along with your investments. -
Water Bender
No, you never put all your money all into one company’s shares. If that company fails, you lose your entire investment, and you’ll lose all your money. It is best to diversify, which is to spread investments over several companies in order to reduce the risk of loss, but don’t go overboard trying.
You have the option of buying many different stocks by yourself or just use a mutual fund. Mutual funds are funded by the people who buy shares in that mutual fund. Mutual funds is professionally managed by a money manager and they specialize in making their portfolio diversified. Money managers have the ability to buy hundreds, or even thousands, of stocks and/or bonds since it pools all the money deposited by all investors in the fund to buy many different types of investments. Mutual funds uses diversification to minimize loss. If a company fails, chances are some are still up (since it’s not likely they will all fail at the same time), so you won’t lose your whole entire investment. Investors, in return, earn a percentage of the money earned. It’s given per share, so the more shares you have, the more money you would make. By owning a share, you own a part of the mutual fund, which also means owning a a percentage of every security in the mutual funds. But watch out for fees called loads, and remember that you have no say on how the money manager manages the fund. If the money managers mess up, it will hurt you.Overall, you’ll probably earn more in buying stocks by yourself if you manage to Buy Low, and Sell High. Try to buy a few stocks in more than one category (like Technology, Manufacturing, Food, etc) But if you want to spend less on a more diversified portfolio, mutual funds are the way to go.
What is a smart way to start investing in stock?
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Aubrey
I’ve answered questions like this quite a bit recently so I will tell you the same thing I told them The method you chose to buy stocks depends on how active of an investor you would like to be. ETFs are pretty much set and forget, if you find a good index ETF such as SPY (tracks the S&P 500, which tracks 500 well performing companies over many market caps). Mutual funds require a little more homework, and you have to remember that you are buying a fund manager, and not a basket of stocks as you do with an ETF. That means doing homework on the fund manager is key, as they can allocate the money however they choose.
Buying individual stock is the most time consuming but IMO the most rewarding. This is because both ETFs and Mutual Funds charge fees; this is also because buying individual companies gives the buyer the greatest feeling of satisfaction when they love what they own. Its like working on your own car or house; it takes research and effort but satisfying when you know the job is done right. Building off of the earlier strategy to diversify, many people begin by using 90% of their stock money and put it in ETFs and Mutual Funds, and use 10% as "play" money; money they use to buy individual stocks. Over time as comfort level rises, they will use a greater percentage on individual stock.
Finding quality stocks is not as hard as it was, say, 30 years ago. This is because the internet is littered with data about these companies. It actually causes a bit of information overload, but if you know what to filter then its not too bad. There are a number of sites that give you data, and less sites (like the valueline.com) that give you actionable information, and even less sites that do so for free. Myself and my partner have built a site which is in the final category, giving simple to the point stock recommendations based on sound fundamental analysis that has been used for over 100 years for free. (forcastix.com) I encourage you to look around and give me a kudos if you found it useful.
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ag318pun
Its very smart of you to becoming an investor in the stock market
a such a young age, But I have to tell you that before you do any
investing, you must educate yourself to the world of investing or
you surely will lose your money quite fast. Investing in one stock
is dangerous. Most investors have 10 or more different stocks in
their portfolio. If you are working and have an income, make sure
you use a Roth IRA along with your investments. -
Water Bender
No, you never put all your money all into one company’s shares. If that company fails, you lose your entire investment, and you’ll lose all your money. It is best to diversify, which is to spread investments over several companies in order to reduce the risk of loss, but don’t go overboard trying.
You have the option of buying many different stocks by yourself or just use a mutual fund. Mutual funds are funded by the people who buy shares in that mutual fund. Mutual funds is professionally managed by a money manager and they specialize in making their portfolio diversified. Money managers have the ability to buy hundreds, or even thousands, of stocks and/or bonds since it pools all the money deposited by all investors in the fund to buy many different types of investments. Mutual funds uses diversification to minimize loss. If a company fails, chances are some are still up (since it’s not likely they will all fail at the same time), so you won’t lose your whole entire investment. Investors, in return, earn a percentage of the money earned. It’s given per share, so the more shares you have, the more money you would make. By owning a share, you own a part of the mutual fund, which also means owning a a percentage of every security in the mutual funds. But watch out for fees called loads, and remember that you have no say on how the money manager manages the fund. If the money managers mess up, it will hurt you.Overall, you’ll probably earn more in buying stocks by yourself if you manage to Buy Low, and Sell High. Try to buy a few stocks in more than one category (like Technology, Manufacturing, Food, etc) But if you want to spend less on a more diversified portfolio, mutual funds are the way to go.
Should I have my money in the stock market or in a savings account?
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Steve2
To the extent you might need to pull your money out to buy a house or for emergency in case you get laid off, a portion should be in cash or very close to cash in something pretty safe. To the extent you are not going to need this money for 30-50 years when you are retired, this portion can be all in equities. The 2050 fund is a lifestyle fund with an added layer of costs. You will do better long term using a combination of the Total Stock Market Index (VTSMX) – also called the Willshire 5000 Index, and the All World Index (VFWIX). I prefer a mix of 75% us and 25% International, but you could do something more something like 67% US and 33% International if you prefer. Keep it simple, reinvest the dividends, and leave it alone. Don’t try to time the market or listen to gurus. You will not be able to forecast the future. Nobody can, including brilliant money managers. Studies show small investors get burnt, long run, when they try to time the market. Buy high, sell low does not work. Remember, there has never been a 15 year period where broad stock indexes lost money if you reinvested the dividends. I was slow to learn all this, but eventually figured it out and now my retirement accounts are worth near 20 times my annual income.
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Rohit
You can put your money in stock but that must be of good company
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smahadevan39
As per a risk theory, you are young, you can take risk to the extend of 73% ( 100 – 27 your age)
So take calculated risk and invest 75% of your balance in the savings account in stock.
Start investing when the index is low and select only specified shares. -
Ronnie
just invest in real estate. it is a solid and much safer than those stocks that are frequently on a roll, either up or down. whatever the economy, real estate is just steady with a sure increase in market values.
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Big Bully
I like money, thats why I stick with stock and stay away from mutual funds
Where can I get info about the stock market?
Perhaps there are books, DVDs, or other resources I can get my hands on to learn about the stock market. Does anyone have some suggestions?
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A nobody
Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.
Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Lazy Person’s Guide to Investing by Paul B. Farrell
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason ZweigGet into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp , http://finance.yahoo.com/
Other website that can provide instructions and help with procedures and terminology are Investopedia – http://www.investopedia.com/ http://www.investorshub.com/
Visit some of the more professional websites like Zacks Research – http://www.zacks.com/ Smart Money – http://www.smartmoney.com/ Schaeffer’s http://www.schaeffersresearch.com/ Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it. Or you can meet others who are trading at http://www.moneyshow.com/main.aspAttend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.
And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ and/or http://www.tradingsimulation.com/
You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.
Good luck on your journey, study hard and you’ll invest well.
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InspectorBudget
Your local library might be a good starting point. Borrow some books and start your education.
Learn well, and trade carefully, and do not listen to the shills & scams that abound in this area. Good Luck!
What is the stock term of investing all the money in stocks?
1) invest all the money in stocks
2) chance of investing all the money in stocks
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Ron Corporon
I’m a professional investor and as far as I know no terms exist to describe your questions.
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mrbarrakodrama
not sure what your asking. you want to invest all your money in stocks? i wont suggest that because you have a chance of losing all your money
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Octo
There is definitely no official term for this. (You might be thinking "investing risk money")
Source: I trade stocks and write about stocks at http://fadi.el-eter.com
How did the stock market crash in the great depression ?
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Othol48
It crashed because of what was called "buying on margin".
The first thing that must be realized was that, before the crash, the market was on one fantastic upswing. So, people would invest with a broker "on margin", meaning that they would say, pay the broker $10 for a stock worth $100, and then, in a short time, sell the stock when it went to say $150, making a huge profit per share with an investment of only $10. But, when steel went bust, the market fell, and the margins were called in. But most could not pay up, so the market went down even more.
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Bryan
People sent to much on stuff.. and they out lawed alcohol…
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Carly
When the stock market crashes, it means nobody has enough money to buy any stocks. The market went up when people made more money and bought stocks.
What is the best way to learn about investing for a beginner?
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Kick
How old are you? The first decision to make right now is that you will put the maximum amount in an IRA every year. If you are married, then make sure your wife sets up her own IRA account and puts in the maximum amount every year. An IRA is like an egg shell. Inside that egg shell all your money is tax protected until taken out at retirement age after 59 and starting no later than 70 years and 6 months. If you set the IRA up with a discount stock broker, you can do stock trading inside the IRA. $5,000 is the max deposit in an IRA when you are younger than 59. That $5,000 is considered as coming from your earned income for the year. So it is not counted as income on your tax return, If you are only in the 15% effective tax category, that means you will get $750 more in your annual refund check or, pay $750 less in taxes. So you automatically get a 15% return every year. That’s why it is called the ‘no brainer’ investment. Talk to someone at H&R Block.
If you are a veteran, then the second thing you need to do is set up a stock brokerage account with USAA in San Antonio, Texas. You should also do all your banking, credit card, car insurance and life insurance with USAA. No one, and I mean no one, will give you cheaper prices and better service on anything. They have been Number 1 in customer service for years. They are so superior to anyone else it is almost a joke to claim second place. USAA will save you thousands in a life time..
The third thing you should do is buy the book Investing for Dummies. Read it at least three times. When you come to words and phrases you do not understand, you go to a site called Investopedia where they are defined in words and terms you do understand. Other than that, pay attention to financial news every day and don’t be too anxious to make an investment until you feel comfortable doing it.
BTW. Get your IRA account with a discount broker now. Your deposits can sit in a money market account inside the IRA until you learn about what to invest in. A maximum $5,000 deposit sitting in that IRA will get you a 15% return. Not bad for a beginner.
Where does the money traded through stocks in the secondary markets of the stock market go?
Thank in Advance.
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Aditto
Stock market is a vital market for economy. You can trade at secondary market. It’s risky business too.
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muncie birder
Hopefully, some of it goes into my pocket. Some of it also goes to the brokerage firm that handles the trades. It all goes into the pockets of those who trade the stocks and to the brokerage firms that handle the trades.
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M
In the secondary markets, money changes hands between the buyers and sellers.
It’s sort of like this, when a person first buys a new car, the money goes to the car manufacturer – like Ford or Chevy for example. The car dealership also gets a sales commission. Beyond that if this person sells the used car later to someone else, the money will go to the person who sells the car – it doesn’t go back to Ford or Chevy or the car dealership.
The same applies to stocks. When stock is first issued, the money goes to the corporation which issues the stock. An investment bank gets a sales commission for selling the shares to investors. This first public offering is called the "primary market". After this initial sale, any stock sales on the secondary market don’t go to the corporation which issued the shares, they go to the investors who own the shares and sell them.
Usually people will hire a stock broker to help them buy and sell shares of stock on the secondary market. The stock broker is paid a commission for this service. The commission is typically small compared to the size of the transaction though. Almost all of the money goes to the person selling the stock.
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A nobody
The money that a buyer pays their brokerage firm goes to the seller of the stock
And when you sell a stock, the buyer’s brokerage firm will your pay your brokerage firm.
since their is always a seller for every buyer, the money is constantly moving.On listed securities all the clearing (settling) of the transaction occur through a clearing corp. One the settlement day of the trade the clearing corp will collect the total amount of money from each brokerage firm for all the purchases, the later in the day, the clearing firm will pay the b brokerage firm for all the sales they have made as long as the selling firm delivers the securities that were sold. If the securities sold are not delivered, the brokerage firm will not receive the proceeds of the sale,
Banks do not usually get involved with the settlement of transactions unless the bank acted as broker/dealer on the trade, all money move between the clearing corp and the broker/dealers.
B/D do use banks as a paying agent for them or accept deposit for the B/D -
mrbarrakodrama
other people firms and companies
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Mike
it lines the pockets or everyone but you. People in the industry will make dozen of trades on the money each day. You are giving up your working capital to others and have no control of the funds. You are being a speulator and not an investor, don’t be a fool and invest in a market that you have no control.
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Dave
my buddy’s mother makes $86/hr on the computer. She has been laid off for 9 months but last month her pay was $7198 just working on the computer for a few hours. Read more here… LazyCash1.com
Is there a stock market simulation game that follows the actual stock rates?
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David
Investopedia.com not only has a great simulator that is widely used, you can use this site for all your financial definitions and education needs.
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Ron Corporon
Yahoo Finance and Google finance do this.
Look for personal portfolios.
How do I create a pretend portfolio for the stock market with out real money?
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jeff410
investopedia.com
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Max Kurtz
investopedia has a simulator where you can pick stocks and track them to see what will happen
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Kelly 5:23 pm on January 26, 2012
Investors can purchase Canadian stocks and bonds in a couple different ways. Canadian stocks and bonds can be purchased directly on the Toronto Stock Exchange, Canadian National Stock Exchange or other Canadian stock exchanges. Or, investors can easily purchase many Canadian stocks and bonds through exchange-traded funds (ETFs) or American Depository Receipts (ADRs).
Pari 5:23 pm on January 26, 2012
A securities firm is classified as an agent when it acts on behalf of its clients as buyer or seller of a security.
The agent does not own the security at any time during the transaction.
Stock investing is a great way for Canadians to build wealth, but it can have its pitfalls.
This list spells out the essentials every stock investor should remember.
You’re not buying a stock; you’re buying a company.
The primary reason you invest in a stock is because the company is making a profit.
If you buy a stock when the company isn’t making a profit, you’re not investing — you’re speculating.
A stock (or stocks in general) should never represent 100 percent of your assets.
In some cases (such as a severe bear market), stocks aren’t a good investment at all.
A stock’s price is dependent on the company,
which in turn is dependent on its environment, which includes its customer base, its industry, the general economy, and the political climate.
Your common sense and logic can be just as important in choosing a good stock as the advice of any investment expert.