Module   online investments
Upcoming SlideShare
Loading in...5
×
 

Module online investments

on

  • 452 views

 

Statistics

Views

Total Views
452
Slideshare-icon Views on SlideShare
452
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • The Internet includes the web, instant messaging, and email.
  • Start Small: Start with a smaller sum, which will be easier to handle and keep track of. Once you feel confident, you can then decide to add more money to your online account.
  • Start Small: Start with a smaller sum, which will be easier to handle and keep track of. Once you feel confident, you can then decide to add more money to your online account.
  • Once online, many investors tend to concentrate on stocks, specifically large-cap domestic stocks. While these stocks should make up part of your portfolio, they shouldn't be ALL of it! Take into account your time horizon and risk tolerance to develop a well-balanced portfolio of stocks, bonds, and cash.
  • Most investors are in mutual funds for a good reason. They don't have the expertise to make their own investments calls on individual stocks. They also are too preoccupied by work, family and other concerns to spend every minute watching the market. So keep your mutual funds; don’t cash out your long-term fund holdings so that you can start "playing the market" in individual stocks!
  • Even if online brokerage costs are lower than those of full-service brokers, they can still add up, particularly if you do a lot of buying and selling. Online brokerages firms also impose a number of other fees and charges that you should study closely. The federal capital gains tax is also something with which you must reckon.
  • The online brokerage firm's server could crash due to heavy trading, unexpected software glitches or a natural calamity. Know about the firm's alternative trading options. This could include automated telephone trading or calling a broker.
  • Don't just settle for the hype about hot stocks! Go to the company's Web site and download its prospectus. Check out the company's publicly available filings through the U.S. Securities and Exchange Commission's EDGAR system and other resources. All of these are available on the company’s website.
  • Passwords: Keep passwords in a secure place, and don't share them on the internet, over email, or on the phone. AntiVirus: If your firewall was shipped in the "off" mode, be sure to turn it on and set it up properly. Public Computers: use extra caution when using your own computer in a wireless "hot spot.”
  • Don’t believe everything: Fraud artists often float false information and "hot tips" as part of their efforts to rip-off investors or manipulate the market for a particular security. Unbiased sources: as the U.S. Securities and Exchange Commission, your state securities regulator, and securities industry self-regulatory organizations (including FINRA, Amex, and Nasdaq).
  • Ask students to try these buttons
  • SmartMoney magazine’s list of the top online brokers: http://www.moneybluebook.com/list-of-the-best-online-brokers-by-smart-money-2009/ Reviews of the top online brokers: http://www.moneybluebook.com/reviews-of-the-best-online-discount-brokers/
  • Instructor would help students go to one of these two sites and create a portfolio. I prefer the Yahoo site, myself. Fairly self-explanatory instructions. You have to know the stock codes of the companies, so be prepared with a list of them.
  • Usually you can find company website by just typing www.companyname.com, but not always. Use Google if you can’t easily find website. Put name of company in quotation marks. Should then be top result. OR, use Hoovers. www.hoovers.com. Even on the free Hoovers access, the website will be returned with the short profile of the company. Public companies MUST post links to their annual reports, financial reports and SEC documents. The 10K will give a thorough overview of the company, including description, background, properties, competitors, etc.
  • Also, give them “Investing Online” handout.

Module   online investments Module online investments Presentation Transcript

  • How To Research and Invest Online 1 8-5-10
  • Investing Online
    • The internet allows investors to access account information 24/7, initiate securities transactions from virtually anywhere, and quickly and inexpensively research investment opportunities.
    9
  • Investing Online
    • The days of keeping in constant contact with a broker and paying a fortune for stock trades are over. Today, more than a million trades are made everyday online. Thanks to the internet, people can now make trades just about anywhere from their couch, their lunch break or on the go.
    9
  • Exercises in this class You will:
    • Compare top discount broker sites
    • Set up a tracking portfolio on either Google Finance or Yahoo finance
    • Research one company website to locate investor information (SEC documents, annual report, events/presentations)
    • Track / view a company’s current activities/news using Google News
    • Set up an “alert” on Google News
    3
  • 6 Things Every Online Investor Should Know
    • Start small. If you are new to online investing, don't put your entire life savings into an online account.
    3
  • 6 Things Every Online Investor Should Know
    • Stay diversified. Develop a well-balanced portfolio of stocks, bonds, and cash.
    3
  • 6 Things Every Online Investor Should Know
    • Don't bail on mutual funds. Keep your mutual funds; don’t cash out your long-term fund holdings so that you can start "playing the market" in individual stocks!
    3
  • 6 Things Every Online Investor Should Know
    • Costs may not always be obvious. Even if online brokerage costs are lower than those of full-service brokers, they can still add up, particularly if you do a lot of buying and selling.
    3
  • 6 Things Every Online Investor Should Know
    • Problems are inevitable. Trading online is not foolproof. There will be times when you can't access your account. You could be away from your computer when the market makes a major move. Your Internet connection could be down.
    3
  • 6 Things Every Online Investor Should Know
    • Information is power. If you are going to buy and sell individual stocks online, it is your duty to keep as well informed as possible about what is going on with the company in question.
    3
  • Security Tips
    • Protect your passwords for your online investment accounts.
    • Use anti-virus and anti-spyware software , and a firewall, and keep them up-to-date.
    • Avoid using public or other shared computers to access your financial accounts online
    3
  • Security Tips
    • Don't believe everything you read in online newsletters, investing blogs, or bulletin boards.
    • Turn to unbiased sources when researching investments
    3
  • Access
    • The Internet isn’t always available. Faulty servers, bad Internet connections, busy phone lines, natural disasters, peak-hour overload — all can get between you and your on-line firm.
    • Remember that your click of the mouse represents a request to execute a trade.
    • You are not directly connected to the stock market. All trades will be executed by your on-line firm’s brokers/dealers, presumably as quickly as possible.
    3
  • Investing Online
    • Two types of Online Trading services exist
    • Full-service brokerage
      • Online Trading service with the advice of a broker.
      • Merrill Lynch, Salomon Smith Barney, etc. provide Full-service brokerage trading.
    • Discount brokerage trading
      • -Investors make their own investment decisions without the advice of brokers.
    3
  • Top Discount Brokers
    • Zecco: www.zecco.com
    • TradeKing: www.tradeking.com
    • eTrade: www.etrade.com
    • Scot Trade: www.scottrade.com
    • Sharebuilder (ING Direct) www.sharebuilder.com
    3
  • Resources for Creating and Tracking Portfolios
    • Two best sites for creating and following a portfolio of stocks
      • Yahoo Finance: http://finance.yahoo.com
      • Google Finance: http://www.google.com/finance
  • Research – Company website
    • Find company website by searching on Google for company’s name in “quotation marks” (“Home Depot”).
    • At company web site, look for link to “Investor Relations” or “Investors”.
    • Download to read Annual Report, and annual 10-K SEC filing.
    • Read most current quarterly earnings reports.
    • Look for “Events & Presentations” to view speeches and powerpoints about company.
  • Research – Current News
    • Google News allows you to search for news stories on your companies, and also to set up news “alerts.”
    • Google News: http://news.google.com
  • Search on company name in quotation marks Results NEWS.GOOGLE.COM for any current news on companies you’re tracking
  • Sorted by relevance Results can be sorted by relevance , date or date with/without duplicates Sorted by date NEWS.GOOGLE.COM for any current news on companies you’re tracking
  • Waiting for a company to announce a earnings? Sign up for “news alerts” to be delivered once-a-day , once-a-week or as it happens NEWS.GOOGLE.COM for any current news on companies you’re tracking
  • Creative Commons License
    • Curriculum content created by Connect Your Community, a project of OneCommunity , funded by the federal Broadband Technology Opportunities Program .
    • This work is licensed under the Creative Commons Attribution 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by/3.0
    15