The document provides an overview of the stock market, including key concepts and terms. It discusses Warren Buffett's advice to only invest in stocks you'd hold for 10 years. The document then covers various topics related to investing successfully, such as developing a low-stress investment plan and understanding risk. It also describes major US stock exchanges like the NYSE and Nasdaq, how stocks are traded, important market players, and the order process. Finally, it discusses mutual funds, index funds, and after-hours trading.
http://www.rdsfx.com When you understand the value of the dollar in your pocket, you begin to understand interest rates. When you understand interest rates you have the key to invest wisely in all financial markets
Watch full video on Youtube - https://youtu.be/Qmw15cG2Mv4
This video enhances your knowledge on portfolio management. It explains the meaning, types, process and objective of managing portfolio which comprises of stocks, mutual funds, commodities, metal, real estate etc. diversified sort of investments.(portfolio management)
Thank You
Managed Forex Accounts presented by The Forex Secret
Visit Our Website
https://theforexsecret.com/
Subscribe Our Youtube Channel
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The art of Equity Investing
About EduPristine
Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training providers for Finance Certifications like CFA, PRM, FRM, Financial Modeling, Business Analytics etc. EduPristine holds a profound history in training Risk Professionals across the globe. It has been an International Authorized Training provider for FRM & PRM trainings since past 4 years and has helped 250+ FRM aspirants clear the Exam. It is Registered with GARP & CFA Institute as an Approved Provider of Continuing Professional Education (CPE) credits.
http://www.edupristine.com/ca
Have you ever caught yourself dreaming of a trip to Spain in the summer, that brand new set of golf clubs, or even the holiday home down in Cape Town you've always wanted?
Who says they only have to be dream?
Not me.
I want you to have these thingsâŚ
Thatâs why today I want to tell you that whatever you're dreaming about, my simple Forex methodology and techniques could help put you on the road to all of this and more!
Forex is a $5 trillion-per-day market!
Thatâs an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profitsâŚ
http://www.rdsfx.com When you understand the value of the dollar in your pocket, you begin to understand interest rates. When you understand interest rates you have the key to invest wisely in all financial markets
Watch full video on Youtube - https://youtu.be/Qmw15cG2Mv4
This video enhances your knowledge on portfolio management. It explains the meaning, types, process and objective of managing portfolio which comprises of stocks, mutual funds, commodities, metal, real estate etc. diversified sort of investments.(portfolio management)
Thank You
Managed Forex Accounts presented by The Forex Secret
Visit Our Website
https://theforexsecret.com/
Subscribe Our Youtube Channel
https://www.youtube.com/channel/UCcColPKHL5veQMoPDApgR0g?sub_confirmation=1
Join Our Telegram Channel
https://t.me/theforexsecret
Follow Us on Facebook
https://www.facebook.com/TheForexSecret/
Join Our Facebook Community
https://www.facebook.com/groups/FxTradingCommunity/
Follow Us on Twitter
https://twitter.com/Dforexsecret
Connect with Us on LinkedIn
https://www.linkedin.com/in/the-forex-secret/
The art of Equity Investing
About EduPristine
Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training providers for Finance Certifications like CFA, PRM, FRM, Financial Modeling, Business Analytics etc. EduPristine holds a profound history in training Risk Professionals across the globe. It has been an International Authorized Training provider for FRM & PRM trainings since past 4 years and has helped 250+ FRM aspirants clear the Exam. It is Registered with GARP & CFA Institute as an Approved Provider of Continuing Professional Education (CPE) credits.
http://www.edupristine.com/ca
Have you ever caught yourself dreaming of a trip to Spain in the summer, that brand new set of golf clubs, or even the holiday home down in Cape Town you've always wanted?
Who says they only have to be dream?
Not me.
I want you to have these thingsâŚ
Thatâs why today I want to tell you that whatever you're dreaming about, my simple Forex methodology and techniques could help put you on the road to all of this and more!
Forex is a $5 trillion-per-day market!
Thatâs an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profitsâŚ
Presentation performed by Jerry Suppan at the Tokyo PC Club on Thursday, January 6, 2011.
He presented on basic concepts of Forex (foreign exchange) and also how to get started in online trading of forex by introducing brokers to trade forex online.
Chapter 3 How Securities are traded? Bodie, Kane et all with Nepali contextSINGHZEE
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This presentation is basically the CHAPTER 3 presentation from the Book "Investments" by Bodie, Kane, Marcus and Mohanty with relevant information from Nepali Market
PLEASE HIT LIKE IF IT'S HELPFUL! :D
IABF Education Institute gives to you details about Stock Market details, How to know about stock markets, What is Stock Market, Who is broker, What is D/Mat A/C, Functions of Brokers, Know about NIFTY,
It is a market place where shares of public companies are bought and sold
It is commonplace where the issuers of the shares & subscribers of the shares come together
How to get verified on Coinbase Account?_.docxBuy bitget
Â
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
where can I find a legit pi merchant onlineDOT TECH
Â
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Â
Pi coins is not launched yet in any exchange đą this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAYÂ you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers âĽď¸
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The secret way to sell pi coins effortlessly.DOT TECH
Â
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
Â
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ â 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
⢠The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
⢠The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
⢠The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
⢠Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and assetâs value is determined by companyâs performance. There are two major types of equity securities: common stock and preferred stock.
ď Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the companyâs board of director or the business decisions to be made.
ď Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for companyâs growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
What website can I sell pi coins securely.DOT TECH
Â
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
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Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the worldâs largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
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The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a âRoaring Twentiesâ? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. governmentâs aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
âIn order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,â says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to swap pi coins to foreign currency withdrawable.DOT TECH
Â
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can i use my minded pi coins I need some funds.DOT TECH
Â
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. đ I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
Â
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Scope Of Macroeconomics introduction and basic theories
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The Stock Market (session 1)
1. The Stock Market
âOnly buy something that you'd be perfectly happy
to hold if the market shuts down for 10 yearsâ.
Warren Buffett
2. Agenda
1
Key Success Factors
2
Risk
3
Stock exchanges and how stocks are traded
4
Players
5
Order Process
6
Mutual Funds, Index Funds and Afterhours Trading
7
Alternatives to Stock
8
Why Trade Stocks?
9
NYSE Tour (video)
3. 1
2
3
4
5
6
7
8
9
Key Success Factors Investors must develop
1. Respect for Risk
â people tend to think of investing on the
markets as a gamble
â successful investing relies on an
investor´s ability to reason, weigh risks,
spot opportunities and make quick
decisions
â choosing to take unavoidable risks is
simply part of the decision making
process
â neglecting to assess risk is definitely a
gamble
4. 1
2
3
4
5
6
7
8
9
Key Success Factors Investors must develop
2. Low-stress investment plan
â winners start slow and collect the necessary tools to build
a competitive edge
3. Specializing in one or two markets at a time
â specialization allows traders to match winning strategies
with recognizable market conditions
4. Define your limits in terms of the amount of money
you can afford to lose
â need cash to open a brokerage account
â assess your financial capabilities and pinpoint your risk
tolerance
5. 1
2
3
4
5
6
7
8
9
Risk
⢠Frequently misunderstood concept
because it comes in many forms: market
risk, opportunity risk and inflation risk
â market risk is a catchall phrase for the
inherent risk associated with market forces
â opportunity risk involves the economic
sacrifice from having to forgo the benefits of
alternative investments
â inflation risks affects all investments â some
more than others
6. 1
2
3
4
5
6
7
8
9
Risk
â one of the most important lessons in trading is the concept
of the risk to reward ratio
â if you cannot afford the risk, you can´t not afford the
investment
â serious risk assessment can reduce the stress inherent in
trading and help you to invest intelligently
â the risk of owing stocks is that they can periodically decline
in value
8. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠A stock exchange is an actual physical location or
computerized system
⢠3 main exchanges in the US: NYSE, AMEX (American
Stock Exchange) and the Nasdaq (National Association of
Securities Dealers Automated Quotations system)
⢠To be an exchange member requires the purchase of a
seat on the exchange at a cost upwards of 500K dollars
⢠Each Exchange has specific requirements â market cap,
sales and so on
⢠Rent booths on the exchange floor to brokerage firms
and specialists
9. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠NYSE (Trading floor):
â GE, McDonaldâs, Citigroup, Coca Cola
â founded in 1792
â largest and most familiar auction style
exchange
â list 3,050 companies
â average daily turnover is 1 billion shares
â corporation overseen by a board of directors,
who set policy, supervising members activities,
listing securities and overseen the transfer of
membersâ seats on the Exchange
10. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠AMEX (American Stock Exchange):
â second largest auction style
equities market in the world
â private not for profit corporation
â handles one fifth of all securities
trades within the United States
â most of the companies AMEX
offers are too small to be listed in
the NYSE
11. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠Nasdaq: (National Association of
Securities Dealers Automated Quote
System)
â not a physical exchange
â computerized network that stores
and displays stock price quotes
â offers more stocks than any other
Exchange
â experienced phenomenal growth
due to the large number of
technology companies
12. 1
2
3
4
5
6
7
8
9
Stock exchanges and how stocks are traded
⢠Nasdaq (cont.):
â NASD (National Association of Securities
Dealers) â self regulatory organization
regulates Nasdaq and over the counter
markets
â stocks on Nasdaq are sometimes referred to
as âfour letterâ stocks
â QQQ: listed on the Nasdaq (100 largest nonfinancial stocks-(Index Share). One of the
most actively traded securities on the AMEX
13. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠OTCBB (Over The Counter
Bulletin Board): small
companies that do not meet
the listing requirements.
Home to penny stocks, little
to no regulation, risky
⢠Daily price updates are
called âPink Sheetsâ
⢠BBV: 99.7% + Fixed Income
(Bonds, CD, REPOâs, etc.)
14. 1
2
3
4
5
6
7
8
9
Stock Exchanges and How Stocks are Traded
⢠SEC (Securities and Exchange Commission)
â regulates U.S. exchanges
â created during the depression
â composed of 5 commissioners
â âRule 144â: executives and insiders are
allowed to sell a portion of stock (not
purchased in the open market) every six
months after a holding period of 2 years
without reporting to the SEC
15. 1
2
3
4
5
6
7
8
9
Stock Exchanges: Function
⢠âŚâis a weapon to democratize capital and distribute
the world economyâs wealthâ
⢠One of the most important sources for companies to
raise money
⢠Allows business to be publicly traded, raise
additional capital for expansion by selling shares
⢠The liquidity that an exchange provides affords
investors the ability to quickly and easily sell
securities
16. 1
2
3
4
5
6
7
8
9
Stock Exchange: Function
⢠Prices of shares and other assets are an important part of
the dynamics of economic activity
⢠The stock market is often considered the primary
indicator of a countryâs economic strength and
development
⢠Share prices affect the wealth of households and their
consumption
⢠Exchanges also act as the clearinghouse
⢠Eliminates the risk to an individual buyer or seller that
the counterparty could default on the transaction
18. 1
2
3
4
5
6
7
8
9
Players
⢠Orders:
â phoned or electronically
communicated from the
outside world to floor
traders, who then take
them to trading areas, or
trading pits
â the process might seem
filled with chaos, but a
highly developed,
organizational method to
the madness actually exists
19. 1
2
3
4
5
6
7
8
9
Players
⢠Floor traders: execute transactions from the floors of
exchanges for their own accounts
⢠Trading pits: specific areas, where floor traders,
market makers and specialists met to buy and sell
the same security
⢠Margin: the portion of a trade´s value that the
customer must pay, with the remainder of the
purchase price being borrowed from the broker
⢠there are three chief players in the stock market
today: professional, short term trader and the
individual investor
20. 1
2
3
4
5
6
7
8
9
Players
⢠Professional or institutional investor: trades stocks on
behalf of other people, they are hired to make buying
and selling decisions
⢠Institutional investor: trades large quantities of stock
that the trades qualify for special treatment and lower
commissions
⢠Trader vs. investor:
â investor is someone like Warren Buffet: a classic buy and
hold kind of guy
â trader buys and sells often, looking for price swings,
trends, trend reversals, breakouts and all matter of stock
movements
21. 1
2
3
4
5
6
7
8
9
Order Process
⢠Trader places an order with his broker (electronically,
phone or fax)
⢠Broker submits the order to be executed electronically
or transmits it to the exchange floor, where a floor ticket
is prepared and then passed along to the floor broker
⢠Floor broker takes it to appropriate trading pit and uses
the open outcry to try to find another floor broker
⢠if the floor broker can not fill the order then it is left
with a specialist â he is in essence a floor brokerâs
broker
22. 1
2
3
4
5
6
7
8
9
Order Process
⢠Market makers trade for themselves or for a firm
â They provide liquidity, if there isnât much action on the pit,
they are obliged to make the market happen
â They make their money by mastering the bid/ask spread,
they are experts at hedging their positions for protection
⢠bid: the highest price at which a floor broker, trader
or dealer is willing to buy a stock or commodity for a
specified time
⢠ask: the lowest price at which market makers or
traders are willing to sell a security, a price at which
an investor can buy it from a broker-dealer
23. 1
2
3
4
5
6
7
8
9
Mutual Funds
⢠Investment vehicles operated by
investment companies
⢠Heavily regulated by the SEC
⢠An investment company that pools
investorâs money to invest in a variety
of stocks, bonds or other securities
⢠Mutual fund shares are bought
through the investment company
⢠They are divided into open-ended and
closed ended funds
24. 1
2
3
4
5
6
7
8
9
Mutual Funds
⢠The market value of the portfolio is called the NAV
(Net Asset Value)
⢠Closed-ended fund has a fixed number of shares
⢠An open-ended fund continually issues new shares
⢠Closed-ended funds trade on an exchange and the
price of the shares is determined by supply and
demand â might be greater or less than the NAV
⢠Open-ended fund never trades at a premium or
discount to its NAV and are load (typically 4 to 8%) or
no-load funds â its capitalization is not fixed
25. 1
2
3
4
5
6
7
8
9
Mutual Funds
⢠Load and No Load Funds
â load funds:
⢠class A â pay up front
⢠class B â pay when you withdraw the money (sliding fee)
⢠class C â pay as you go (trailing commissions known as
12(b)-1
â each fundâs portfolio matches the objective stated in the
firms prospectus
â you are picking the manager not the fund
â portfolio turnover indicates how much the fund trades, a
high percentage indicates here indicates an aggressive
stance
26. 1
2
3
4
5
6
7
8
9
Index Funds
⢠A group of stocks that make up a
portfolio in which performance can be
monitored based upon one calculation
⢠Simply an average of a group of stock,
i.e. âThe Dow Jones Industrial Averageâ
is an index fund that monitors 30
stocks, including Intel and Procter and
Gamble, HP and others
⢠Stocks within the fund mirror the index
27. 1
2
3
4
5
6
7
8
9
Index Funds
⢠Index funds have no front-end sales charge and no
management fee unlike the mutual funds
⢠Index shares mirror the performance of a market
average- i.e. SPDRâs (spiders), which track the S&P
500 index. Barclayâs launched 50 index shares called
iShares
â unlike index funds, iShares are bought in an exchange
28. 1
2
3
4
5
6
7
8
9
After Hours Trading
⢠Advances in technology and electronic trading have
made after-hours trading possible
⢠Many brokers offer the ability to trade a limited
number of Nasdaq issues. It is the only big exchange
that can facilitate after hours trading
⢠ECNâs (Electronic Communications Networks) provide
execution services to after hours brokers who
funneled orders through their respective systems
⢠Gap down occurs when a stock price opens much
lower than it closed on the previous day
29. 1
2
3
4
5
6
7
8
9
Alternative to Stocks
⢠Cash equivalents: offer investors a slightly lower fixed
rates of return without any risk of loss
⢠The three most common are:
â CDâs: fixed income securities in minimum denominations
of 1,000 with maturity terms of 1 to 6 years
â Treasury Bills: short term securities issued by the U.S.
Government, minimum amounts of 10,000 with maturities
of 13, 26, and 52 weeks
â Money market funds: funds organized to buy short term
high quality securities like CDâs, treasuries and short term
commercial paper
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Alternative to Stocks
⢠Commodities: 5 categories: grains, metals, energies,
raw foods and meats
â can be very leveraged investments: a small amount of cash
can control many times its face value in commodity
contracts and can also create huge potential wins or losses
â due to its high risk nature, this instrument is utilized
mostly by professionals
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Alternative to Stocks
⢠Commodities are traded as future contracts
⢠future contract: an agreement from a buyer to accept
delivery (or for a seller to make delivery) of a specific
commodity, currency, or financial instrument at a
future date
⢠future markets: consist of a variety of financial
instruments such as, bonds, treasury notes and
currencies
⢠farmers and producers initially used future contracts to
lock in a price of a certain crop or product cycle
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Alternative to Stocks
⢠Commodities:
â most futures contracts are bought on speculation of future
prices and most future traders are speculators
â future contracts expire on a certain date and this adds a
new dimension to the trading process â they need to
predict when a price will be higher or lower
REWARD
futures contract
technology stock
stock mutual fund
bond
cash equivalent
RISK
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Alternative to Stocks
⢠Bonds: are highly popular debt obligations that pay
periodic interest at a fixed rate and promise payment
of principal at maturity
â bond issuers:
⢠U.S. Federal government: treasury bonds (+ 10
years), treasury notes (1 to 10 years), treasury bills
(no more than a year)
⢠Municipal bonds â varies
⢠Corporate bonds â varies
â when interest rates fall, bond prices go up and viceversa
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Alternative to Stocks
⢠Bonds:
â municipal and corporate bonds are rated according to the
credit worthiness of the issuer and range from high grade
bonds to junk bonds
â when investors talk about the bond market, they are
referring to the 30 year old bond market
â economy affects bond prices, which in turn affect stock
prices
⢠example â economy gets hot > leads to higher rates to
cool off inflation > leads to people taking money from
the stock market and put it in the bond market
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Why Trade Stocks?
⢠Some stocks have a liquidity risk (they are easy to
buy but difficult to sell)
⢠If trading volume is light there might be a liquidity
risk â this stock is said to be thinly traded
⢠The fewer shares outstanding, the more volatile the
stock might be
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Why Trade Stocks
⢠Business risk â companies continually face new
competition and difficulties
⢠Given the myriad of risks, why bother trading stocks?
â because, stocks have historically offered the best
returns of any investment vehicles over time