What is buying on margin? Is it a facility that stockbrokers are giving for free to buy stocks? As a trader or investor, you might have these kinds of questions. If you have, don't worry, you are at the right place. In this article we will define the term margin trading. And, we will tell you what are the things you should remember while buying stocks on … [Read more...] about Things to remember while buying stocks on margin
Why do investors prefer investing in common stocks
There can be many compelling reasons why people take interest in the stock market. In this article, we will be discussing the most common reason why investors prefer to invest in the common stocks. People want money, more money, to accomplish their financial goals. Therefore, they set aside money for saving and invest them wisely to grow their wealth. From their … [Read more...] about Why do investors prefer investing in common stocks
How to protect yourself from stock market frauds and scams
As a market participant you should always stay away from stock market frauds and scams. If you fall into the trap, it can cause a lot of damage to your investments and financial goals. The best way to protect yourself from any stock market fraud and scams is to avoid it. In this article, we will tell you how as an individual investor or trader you can protect yourself … [Read more...] about How to protect yourself from stock market frauds and scams
10 reasons why share prices move up and down in stock market
You must have heard about the rise and fall of stock prices. If you are someone new to the market, stock prices might be mysterious to you. You might be wondering why stock prices move up and down? Who decides the stock price? and what factors determine whether stock prices will move up or down? In this article, you will get answers to all of these questions. We will let you … [Read more...] about 10 reasons why share prices move up and down in stock market
How Bid and Ask Price works in the Stock market
Stock will always have two prices: bid and ask. To execute a trade investor must understand the concept of bid versus ask. Many people may not know what bid and ask means, how bid and ask price relates to the stock market, how it defines the demand and supply for a specific financial asset and how it can affect your portfolio return. In this article we will tell you what … [Read more...] about How Bid and Ask Price works in the Stock market
What to look for in the financial statements before investing in stocks
In our last article, we have discussed what are the financial statements and what it contains. In this article, we will tell you what you should look for in the financial statements before buying stocks. We have four sections to a company’s financial statements; The balance sheetThe income statementThe cash flow statementNotes to accounts or explanatory notes If you … [Read more...] about What to look for in the financial statements before investing in stocks
How to decide whether to buy stocks or mutual funds
Over the years equity market has performed well in comparison to any other type of investments such as bonds and real estate. All of these financial assets have their own pros and cons. The question is: where should you invest? If it's equity, should you start investing with stocks or mutual funds? To know the answer you have to first understand the difference between stocks … [Read more...] about How to decide whether to buy stocks or mutual funds
Stocks Vs Bonds – What is the difference
In this article, we have done a comparison between company stocks and bonds to get you a clear picture of the differences. Market participants and analysts can tell you numbers of differences between stocks and bonds. We have mentioned the most important differences between these two from an investing point of view. Ownership - Stock better than bonds Common … [Read more...] about Stocks Vs Bonds – What is the difference
Conservative Vs Aggressive investment strategy – Which style suits you
Based on the approach of market participants toward risk tolerance, investing style can be either: Conservative or Aggressive. Your investment strategy depends on certain parameters such as risk and return. It refers to your approach to stock investing. It's a method or philosophy followed by investors in selecting stocks, bonds and other financial assets for their … [Read more...] about Conservative Vs Aggressive investment strategy – Which style suits you
Why Ex-dividend date is important for stock investors
Dividend payments are important to certain types of investors who invest for passive income. Therefore, they never buy stocks after the ex-dividend date. These investors use dividend payments as a yardstick for their investment. As a part of their investing strategy, these investors purchase stocks of companies that have a history of paying regular dividends out of … [Read more...] about Why Ex-dividend date is important for stock investors