Financial Literacy: Buying and Selling Investments

Chapter 12 Buying and Selling Investments Sources of Investing training -Magazines Forbes, Business Week, Fortune News Magazines Time, Newsweek, US News & World composition -Newspapers -Wall Street Journal and Barrons -Investor Newsletters -Standard & Poors Stock Reports, drear Investors Service, and Value Line Investment Survey -Company Reports -Annual Report -Prospectus -Internet Bloomberg, CNN Money, Kiplinger, Morningstar, Reuters Key Figures accredited Stock Price- amount investors are willing to pay for a bundle of ownership in the company -Number of Employees Increases in the number of employees can glisten growth or downsizing -Market Cap The total value of a company in the furrow food market -Re locale amount of money reliable from business activities -Net Income or Profit amount of money earned aft(prenominal) deducting all the businesss expenses -Profit Margin- profit shown as a luck P/E Ratio price-earning ratio compares the selling price of leafy vege table stock to the annual profits per share -Current Ratio measure of a companys ability to pay its current debts from current assets Stockbrokers amply Service Brokers qualified stock broker who provides advice about what securities to subvert and sell. give the axe Brokers qualified stock broker who defiles and sells securities at a reduced direct but exactly provides advice for a fee sometimes. Online Brokers brokers that charge low fees with the to the lowest degree amount of service no investiture 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 Designed? Primary Market where IPOs or new issues of securities are sold usually directly from the company inessential Market where previously issued securities are sold Securities Exchange are places for brokers to buy and sell securities for their clients Over the Counter Market is a ne twork of dealers and brokers who buy and sell securities not listed on an exchange Direct Investing involves acquire securities directly from a corporation Reinvesting involves getting stock dividends instead of specie dividendsHow are Stocks Bought and Sold? Set up an account Choose your venue (full-service, discount, online, bank, etc. ). Provide ID. Access your account online. Make minimum or regular monthly deposit Place Transactions A market smart set 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