Stock basics? - stock basics
I am interested in investing in the stock market (which I look at some of the technology sector on the NASDAQ, I know it is risky). I have some basic questions.
1. Did you go through an intermediary to buy and sell shares?
2. If so, what are the pros and cons of going on line against physical?
3. How much should you invest in the rule, a company or person, how many shares should I buy?
4. They invest in a fixed amount of money or purchase a specified number of shares at a specified interest rate?
5. You can choose to buy some external actions (eg different suppliers in May asking different prices in a given time) or the role of agents?
6. What is the tax situation? What do you pay taxes on the stock (if calculated) and what should happen if they are?
7. To use the investment in foreign markets, different currencies, what is the role of the conversion?
8. Terminology Wise (short) What is the difference between an act, action, and an option?
Friday, January 15, 2010
Stock Basics Stock Basics?
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4 comments:
1. A broker is not required. It may, however, a firm line brokerage such as Fidelity, Schwab, Scottrade, etc. You do not need to talk to someone if you do not want.
2. Advantage baseline is the cost. Enforcement appears to be as good or better, a physical agent in most cases happen. They avoid the use of counseling in order to trade and simply wrong. You will miss good advice, if any.
If you ask this question, I think it is better online.
3. It is difficult to say how much will be invested. It is for different people are different, depending on the total amount with the intention to invest, how many businesses. Sorry, there is not enough information to answer this point.
4. Both. It just depends on what I'm trying to reach in time.
5. No, on the NYSE, for example, pass routes through the system and specialists. Buyers and sellers are blind. On the Nasdaq, the offer will not know, and askedUnless you pay for the service. Even if you ask the question, you're probably not ready for this service.
6. Taxes on sales and exchanges occurring liabilities, dividends and interest. The capital gains tax on your tax rate is down, and the period of detention.
7. It depends if you buy shares in a local market (eg, Paris) or ADSs in New York. An example of what would you hear makes sense.
8. There is no difference between the measures and joint actions. One option is a completely different animal. It is derived from investments, which expires in exchange for a high risk lever return (option and is well positioned to work during this time or if you lose). With the idea, you can wait as long as you want before the sale.
1) It is much easier than visitors the opportunity available, although in some cases can also be purchased directly from the company.
2) the online brokers are much, much cheaper. In fact, Zecco Department (www.zecco.com) was apparently as free.
3) It depends on how much money you have. If some of you might be easier to just buy index mutual / Exchange-traded funds to invest (for example, the spyware or IVV you can take a little action in the S & P 500 into $ 150 / share)
4) I've always just buy a certain number of shares that the market price.
5) You only get to do your broker and the rest.
6) You pay taxes on the entire capital gains (the difference between the purchase and sale of shares) and dividends do for the year. Inventory losses are deducted from your income - for example, when I get to make $ 1000 in shares, the loss of $ 500 Class B shares and $ 50 in dividends over the years, I have $ 550 tax The tax rate depends on the amount of taxes and how long the population instead. Taxes are not taken, ort its portfolio directly - say, all this in 1040 and sent the IRS a check.
To 7) You buy a lot of foreign stocks in U.S. stock markets or through mutual funds, saving you the trouble of worrying about the currency conversion. Even if you think the dollar falls, it will work for foreign companies is relatively more valuable.
8) The shares and shares - the same. Options are contracts to buy or sell a specified number of shares at a specified price. For example, if you can believe that rises to the Apple iPhone launch, you $ 285 on a contract to 100 shares of Apple (toll free) to buy $ 125 between now and spend the third Saturday in July. If Apple goes, say, $ 130 until then, the right to buy 100 shares of the company are valued at $ 500 and you have almost doubled their money. However, if the population is less than $ 125 of his contract worthless. (Mets) are the opposite of your calls. The options can provide income shares, but also much more risky than stocks.
You may also write call options on the shares (for example, youthe person who undertakes to sell the shares to a person for a fixed price). This is much safer than buying calls, since the worst that can happen is for someone who is selling a stock at a given price.) Almost always options for 100 shares.
For cripes === if there is a place where a fool and his money are easily separated, the securities markets ..
You do not even know the basics, you can be sure he will lose his shirt to get an education .. Very Expensive each room with a personal adviser Cowboy "and" The Merchant of boilers and ADR form comes, and before you shrug costs, expenses and equity value '.. Certificates
I suggest you start with £ 7000 in stocks and shares ISA, and perhaps an index fund ... When reading good books (I recommend "The Investor" Frank libruary try Armsrtrong III = local)
Of course it is spending your money as you want to see :-)
First, there are many books and magazine articles that answer questions and provide basic information. You should check.
Check out discount brokers. You write a lot smaller, but your self-service. To advise the "real" runners and help. Commissions set up to be configured to be punished if he did not buy 100 shares and in "lots" sold, but that's all changed. I do not think that the nurses and the number of shares to buy or sell.
It is important to diversify ... own shares in various companies.
You have to pay tax on dividends and capital gains taxes on their profits.
Action and load are essentially the same. The options are more complicated and risky. You need to study some before it in options.
If you're just starting out, stay in the United States, and some funds.
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