The Investment FAQ

What is Bond Investing?

2008-04-18T09:21:00.000+01:00

Bond investing often gets overlooked in favor of the much hyped stock market or the much beloved savings accounts. In actuality, however, many individuals are discovering what seasoned investors have known for years. A wise portfolio contains a full range of securities including stocks, the traditional savings account and bond investments.

If stocks represent the most variable of investments and the neighborhood savings and loan is the safest, bond investing fall into the middle ground. A bond investment yields a higher return than money in the bank, but can fall short of the tremendous profits possible in the stock market. On the flip side, bonds vary in stability, but almost all are a much safer investment than high growth stocks.

What are Bonds?

Bond investments are simply a loan. You loan your money to a bank, company, the government or other entity, and in return you get your money paid back on a certain date with interest. Bond interest rates vary with each offering as well as with the entity making the offering. A safe, government investment will yield the lowest return (in exchange for the degree of safety) and high-yield bonds may offer a tremendous profit, but the risk is high.

When purchasing a bond, you are loaning a company your money. The company sets a time limit on the issue which can vary from less than a year to more than twenty years. Upon maturation, you receive the full price of the bond which includes the interest, or profit. While it is possible to purchase individual bonds, especially from the government, many investors prefer to let a manager take care of their bond investment and these individuals invest in money market accounts or bond funds – much like mutual funds.

Balancing the Portfolio

Many investors make the mistake of not adequately balancing their investment portfolio. Depending on your life stage, certain percentages of your investments should be comprised of stocks, bonds, and readily available cash. The closer you are to retirement, the more secure your investment should be. This is the time to increase bond investments and begin decreasing investments in stocks.

Stocks, including mutual funds, are considered a long-term investment. The price fluctuates daily, and only by investing in the long term can you guarantee a profit. A bond investment, on the other hand, is a more stable instrument. Most bonds are guaranteed and the interest rate is locked in. As retirement looms, many investors realize that secure portfolio options, such as bond investing, are the best way to guarantee a safe and secure financial future.

For more information about Bond Investing, please refer to: www.bondsinvesting.info

Lending Tree Home Equity Loans

2007-10-19T12:36:00.000+01:00

Obares.com is a quality comprehensive real estate website, focusing on connecting both buyers and sellers. Obares.com also offers quite a few financial tools and information on all aspects of real estate in a very well designed and really easy to navigate site.

While most visitors first visit the site to buy or sell properties, there are many other pages on the site that are certainly worth exploring. One of the web pages that I thought was extremely interesting and useful was the Lending Tree Home Equity Loans page. On this web page, Obares.com has offered some excellent information regarding the services offered by Lending Tree Home Equity Loans and why their service is considered to be at the top of the list in the industry. It should be noted that Lending Tree is not itself a lending service, but actually takes your credit profile and matches it up with up to four loan companies that fit your needs best. Lending Tree Home Equity Loans makes it extremely easy to locate quality lenders offering products that fit your needs. I particularly like the search function, but mostly the city navigation feature, where you find full info on every city, this including demographics and others, along with a properly formated list of real estate agents and properties.

Whether you are looking to sell your own real estate (FSBO), looking to buy real estate or searching for quality information on finding the right home equity loan, definitely check out Obares.com , for me one of the best websites in this area I've seen so far.

Forex course in London... a terrible experience!

2007-09-30T17:53:00.001+01:00

Just got back from a 1 month travelling journey to London where I took an awesome Forex training course.
I'll get up to this subject at a later point, as for now I just want to advise everyone that the next time I'll be travelling to London I'll make sure I put my hands on a decent London Hotel Guide first. I don't care if I stay at a London Hotel, inside a sleeping bag or at one of the many London Hostels there are, I'll just make sure I book proper accommodation and don't make the awful mistake of renting a house for $2000 and have nothing in return than a small bed and a tiny kitchen...
Oh joy, at least the course was damn fine, just like the offshore banking course I took a few years ago!

**I miss all those London Bed and Breakfast places I stayed in when I was a young boy... :)**

Daily Banker.com

2007-08-27T22:52:00.000+01:00

There are plenty of financial information sites online these days; however few offer practical information focused on helping investors and consumers keep current on the best banking deals available. For those looking for an easy to use, straight forward financial site focusing on the best CD rates, best savings accounts and top business credit card offerings definitely visit Dailybanker.com.

Daily Banker stands apart from the crowd due to its ease and simplicity of offering the information you need in a fast and efficient manner. Daily Banker offers clear and updated information for free, no annoying pop ups or registration required. Besides current updates, Daily Banker offers quality commentary regarding the services it provides information on. For instance, if you are looking to invest in a high yielding CD (certificate of deposit), not only will you find several banks that offer the best CD rates, but also some insightful and timely advice. Here is some more information on each of the items this site focuses on:

Find the Best Savings Accounts

Practically every investor or consumer utilizes a savings account to save their liquid assets. However, all savings accounts are not created equal. Daily Bankers shows you how to get the best deals when looking for a savings account including information regarding money market accounts. Just by choosing your savings account wisely with the help of Daily Banker can increase your interest earned substantially.

Find the Best Business Credit Cards

If you own a small business, you can easily reap rewards or save considerable amount of money just by choosing your business credit cards wisely. Daily Banker offers sound advice and keeps you updated on the top business credit card offerings in the industry

Find the Best CD Rates

One of the most stable and secure investment vehicles around is the CD (certificate of deposit). While practically all banks offer CD’s to their customers, they are not created equal. Daily Banker can help you find the best CD rates in the industry, as well as offer quality advice on investing in CD’s.

Who can benefit most from Daily Banker? Any investor or consumer that is looking for top banking offerings on CD rates, the best savings accounts in the industry and top business credit cards. After visiting Daily Banker, it’s easy to see how one can easily earn more on their investments just by being updated with quality information. Whether you are a seasoned investor or just starting out, the information available at Daily Banker should not be missed.

To access quality financial information at Daily Banker, please visit the following hyperlink: http://www.dailybanker.com

Reviews Blog - Get reviewed by us

2007-07-08T17:17:00.000+01:00

The Website Reviews Blog is very well maintained for the informative section from web. The clean review on the newest development in a site about any matter from web development to simple blogging is the niche of this blog. Whether you wish to look about a review on the entertainment, gadgets and technology, culture, business, health, internet, or other some general stuff( marriage , shopping, jewelry and watches), you will love to read them. The reviews here are made for the matters which have some global quality in any field with a strategy to maximum information through slim write ups. That makes a visitor not to get bored and interestingly read about the whole matter with the undisputable charm. Just look at the matter about a site that is the web directory. The review is brief and much informative to give a whole view about the service instantly.

The new additions can be tracked back also, in case you have missed it, through the archives section. Plus the features of comments and RSS feeds make it more service handy. So looking on, it’s the very review site that since the beginning has maintained some applauding chores of correct information and quality content. A worth visit the blog , if you need concise review with possible important information.

Invest in you...

2007-06-18T16:58:00.000+01:00

Well, maybe the best investment one can do is itself.
Have you ever though investing in you?
Have you ever looked into the mirror and thought "What can I do with myself?"
Well, maybe it's about time you take that advantage and learn how to become a supermodel.
Supermodels earn zillions of dollars every year, have dream lifes and all about that.
Go on, look at the mirroe and check if you're worth the investment. :)

Do you want a cool Investment? Buy your own country!

2007-05-15T19:57:00.000+01:00

Buyanation.com Delivers the World to Advertisers

For those advertisers looking for a unique way to spread the word about their web site or product, Buyanation.com can deliver to you the world. Buyanation.com is a new spin on pixel advertising adding benefits to both advertisers and web site visitors. If you are looking for a great way to gain exposure and reap a hefty return on your advertising investment, Buyanation.com should definitely be considered.

Buy a Nation is a pixel advertising site in which pixel blocks in the shape of each country are available for sale and viewed on one large world map. Advertisers that are bored with conventional pixel advertising sites will find Buyanation.com refreshing. This site not only looks great, but is extremely easy to navigate and advertisements are simple to spot. Even those countries that are small are extremely easy to find thanks to the “View by Continent” feature. “View by Continent” lets web site visitors easily find and view even the smallest countries of the world by easily clicking on their continent of choice which highlights the specific area of interest. Also any visitor can easily click on a specific country to highlight an advertiser’s ad including profile, link, etc.

Buy a Nation definitely has one of the best concepts in the pixel advertising niche sporting a very clean and easy to navigate design. This site is sure to benefit the many advertisers looking for an extra source of traffic, as well as valuable one way back link. Buyanation.com states that the site will be up and running for a minimum of 5 years making this site an extremely attractive investment for the link alone.

The cost to buy each country varies dependent upon area (total amount of pixels), desirability and location. However, a quick glance reveals countries such as the United States and Russia at $600 and $450 respectively, while smaller countries such as Ireland are available at $40 or even less.

You can visit Buyanation.com via the following link: http://www.buyanation.com

Swing Trader Rules

2007-05-03T22:22:00.000+01:00

Swing trading can be a great way to profit from market upswings and downswings,
but as I’ve always said, it’s not easy. Mastering the swing- trading techniques takes
time and effort. To help get you started, I am giving you 20 Rules to think about as
you begin – and ultimately master – swing trading.

Rule 1: If you have to look, it isn’t there.

Forget your college degree and trust your instincts. The best trades jump out of
nowhere and create a sense of urgency. Take a deep breath, then act quickly before
the opportunity disappears.

Rule 2: Trends depend on their time frame.

Make sure your trade fits the clock. Price movement aligns to specific time cycles.
Success depends on trading the right ones.

Rule 3: Price has memory.

What happened the last time a stock hit a certain level? Chances are it will happen
again. Watch trades closely when price returns to a battleground. The prior action can
predict the future.

Rule 4: Profit and discomfort stand side by side.

Find the setup that scares you the most. That’s the one you need to trade. Don’t
expect it to feel good until you take your profit. If it did, everyone else would be
trading it. Wisdom from the East: What at first brings pleasure in the end gives only
pain, but what at first causes pain ends up in great pleasure.

Rule 5: Stand apart from the crowd at all times.

Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit
door. Your job is to take their money before they take yours. Be ready to pounce on
ill-advised decisions, poor judgment and bad timing. Your success depends on the
misfortune of others.

Rule 6: Buy the first pullback from a new high. Sell the first pullback from a
new low.

Trends often test the last support/resistance before taking off. Trade with the crowd
that missed the boat the first time around.

Rule 7: Buy at support. Sell at resistance.

Trend has only two choices upon reaching a barrier: Continue forward or reverse. Get
it right and start counting your money.

Rule 8: Short rallies, not selloffs.

Shorts profit when markets drop, so they start to cover. This makes it a terrible time
to enter new short sales. Wait until they get squeezed and shaken out, then jump in
while no one is watching.

Rule 9: Manage time as efficiently as price.

Time is money in the markets. Profit relates to the amount of time set aside for
analysis. Know your holding period for every trade. And watch the clock to become a
market survivor.

Rule 10: Avoid the open.

They see you coming, sucker.

Rule 11: Trades that work in hot markets destroy accounts in cool ones.

Stocks trend only 15% to 20% of the time. Price ranges cause grief to momentum
traders the rest of the time.

Rule 12: The best trades show major convergence.

Watch for the bull’s eye. Look for a single point in price and time that points
repeatedly to a trade entry. The market is trying to tell you something.

Rule 13: Don’t confuse execution with opportunity.

Save Donkey Kong for the weekend. Pretty colors and fast fingers don’t make
successful careers. Understanding price behavior and market mechanics does. Learn
what a good trade looks like before falling in love with the software.

Rule 14: Control risk before seeking reward.

Wear your market chastity belt at all times. Attention to profit is a sign of immaturity,
while attention to loss is a sign of experience. The markets have no intention of
offering money to those who do not earn it.

Rule 15: Big losses rarely come without warning.

You have no one to blame but yourself. The chart told you to leave, the news told you
to leave and your mother told you to leave. Learn to visualize trouble and head for
safety with only a few bars of information.

Rule 16: Bulls live above the 200-day moving average, bears live below.

Are you flying with the birds or swimming with the fishes? The 200-day moving
average divides the investing world in two. Bulls and greed live above the 200-day,
while bears and fear live below. Sellers eat up rallies below this line and buyers come
to the rescue above it.

Rule 17: Enter in mild times, exit in wild times.

The big move hides beyond the extremes of price congestion. Don’t count on the
agitated crowd for your trading signals. It’s usually way too late by the time they act.

Rule 18: Perfect patterns carry the greatest risk for failure.

Demand warts and bruises on your trade setups. Market mechanics work to defeat the
majority when everyone sees the same thing at the same time. When perfection
appears, look for the failure signal.

Rule 19: Trends rarely turn on a dime.

Reversals build slowly. Investors are as stubborn as mules and take a lot of pain
before they admit defeat.

Rule 20: See the exit door before the trade.

Assume the market will reverse the minute you get filled. You’re in very big trouble
when it’s a long way to the door. Never toss a coin in the fountain and hope your
dreams will come true.

One-Line Wisdom

2007-05-03T22:18:00.000+01:00

This is a collection of one-line pieces of investment wisdom, with brief
explanations. Use and apply at your own risk or discretion. They are
not in any particular order.

Hang up on cold calls.

While it is theoretically possible that someone is going to offer
you the opportunity of a lifetime, it is more likely that it is
some sort of scam. Even if it is legitimate, the caller cannot
know your financial position, goals, risk tolerance, or any other
parameters which should be considered when selecting investments.
If you can't bear the thought of hanging up, ask for material to be
sent by mail.

Don't invest in anything you don't understand.

There were horror stories of people who had lost fortunes by being
short puts during the 87 crash. I imagine that they had no idea of
the risks they were taking. Also, all the complaints about penny
stocks, whether fraudulent or not, are partially a result of not
understanding the risks and mechanisms.

If it sounds too good to be true, it probably is [too good to be true].

Also stated as ``There ain't no such thing as a free lunch
(TANSTAAFL).'' Remember, every investment opportunity competes with
every other investment opportunity. If one seems wildly better
than the others, there are probably hidden risks or you don't
understand something.

If your only tool is a hammer, every problem looks like a nail.

Someone (possibly a financial planner) with a very limited
selection of products will naturally try to jam you into those
which s/he sells. These may be less suitable than other products
not carried.

Don't rush into an investment.

If someone tells you that the opportunity is closing, filling up
fast, or in any other way suggests a time pressure, be very leery.

Very low priced stocks require special treatment.

Risks are substantial, bid/asked spreads are large, prices are
volatile, and commissions are relatively high. You need a broker
who knows how to purchase these stocks and dicker for a good price.

Bonds Investing

2007-04-15T19:47:00.001+01:00

Following some changes I've been making to my investment portfolio, I've decided to head different ways. I've decided to start investing in bonds.
Considering this change and all the consequences of it I've started to search for bonds information online; I was mostly looking for a site that could provide me with the basics about bonds investment, types of bonds currently available and other useful information.
Take a look at www.bondsinvesting.com and you'll see what I talk about!

About Credit Card Debt

2007-04-02T13:23:00.000+01:00

In the world of credit cards, credit debt is all too park. Debt from credit cards can be very stressful, and lead to a very incapacitating state of affairs. No one is immune to credit card debt, as even students can experience debt with their credit cards as well. With citizenry exploitation their credit cards more these days, more and more citizenry retain to assume the dunk into debt. Debt is never beneficial, as it leads to bankruptcy and the destruction of your credit reputation.Even though getting in credit card debt is simple to do, getting out of it is something that takes a good deal of piece of work. Even if you fling to an means or party that specializes in helping citizenry out of debt, it won’t happen overnight. To get out of debt, it will take you quite a bit of time and campaign as you get the debt under control condition and begin the long procedure of rebuilding your credit.

To decently hold yourself from credit card debt, you’ll need to live quite a bit about credit, managing your money, and pecuniary resource in general. commonly, you can stay out of debt by creating an ideal budget and saving money whenever you can. If you stick to this programme and head off direction away from it, you’ll usually have no problems staying out of debt.

If you have other credit cards that you don’t use, such as store credit cards that are known for high stake rates, you should dispose of them. If you have a heap of open accounts, you should look into debt integration, which will cartel all of your debts into one payment so you can have them out of the way faster. By using debt integration services, you will only have one billhook to pay.

When you get your credit card bill, you should always reach to pay more than just the minimum. If you only pay the minimum amount of money, you could very well end up being in debt the quietus of your life - as you could be paying nothing but the stake. Every month, you should strain to pay the minimum amount of money and then some. gainful more than the minimum sum of money will also helper to pay fling your credit card bill faster as well.

No subject how much credit card debt you are in, you can always discover debt management services and agencies that will assist you conflict back. Credit card debt is very common these years, something many of us have experient. Although there are slipway out of credit card debt, the best way to get out of it is to forfend it all together. If you pay your bills on time and never neglect a payment - you’ll always know a debt release life style.

How to compare Credit Cards?

2007-03-18T08:36:00.000Z

All across the

United States

, there are hundreds and hundreds of banks and credit card companies looking for your business. This day and age, banks and credit card companies are in competition with each other, trying all they can to get your business. To try and get your business, they offer different credit cards with various incentives, rebates, and other perks.

Before you make your decision and choose a credit card, you should always compare what each company or bank has to offer you. If you get an offer in the mail for a credit card, you should go on the Internet and look into it more. You should also make sure that you read the fine print as well, to see if there is any type of hidden fees or other costs associated with that card. Many times, with offers in the mail, credit card companies or banks will try to sneak hidden fees and costs in there.

When you start to compare offers, you should make sure that you look at the APR and the fees. The APR is very important, as this will tell you your interest rate. You want to get the lowest APR possible with your credit card. If you look at a credit card that has an unusually high APR, you should immediately rule it out. Credit cards that come with high APR rates can easily lead you on a roller coaster towards credit card debt. No matter how good your credit may be, high APR rates can leave you with charges that are really difficult to pay.

Among the many options available to you, you’ll have three primary choices for your credit card - Visa, MasterCard, and American Express. These three giants are the leaders in credit cards. Visa and MasterCard don’t issue the cards themselves, they have banks and other companies issue on their behalf. American Express, or AMEX, is the only one that does everything themselves. AMEX issues their credit cards, maintains their own networks, and doesn’t use any type of third party.

If you like to travel, you will probably want to choose either Visa or MasterCard, as they are accepted all over the world. American Express is the least accepted of the three, although the company is upgrading their networks every chance they get. Before too long, AMEX will be accepted virtually everywhere. Right now though, AMEX isn’t accepted in all areas of the world.

Discover is another type of credit card, although it isn’t near as popular as the three above. Discover does have some great benefits to offer you, although it isn’t accepted in other parts of the world. Most people who have Discover credit cards stay local and use their cards in the event of an emergency. If you don’t have a credit card and have been thinking about getting a Discover card, you should really think about that decision and choose either Visa or MasterCard instead.

All in all, there are a lot of credit cards to choose from. That final decision though, is entirely up to you. There are a lot of great companies and banks out there, although it’s up to you to find the best credit card for your needs. You can choose to go with a company or bank that’s local to you, or get online and look for your credit card. The Internet can be a great resource for credit cards, as long as you know what you want. If you know what you want before you go online - you’ll save yourself a lot of time and money.

The Future of Self Certified Mortgages

2007-02-03T16:49:00.000Z

As the market for self certified mortgages grows, so does the pressure for tighter regulations for self certified mortgages.

Those who have a keen interest in the future of self certified mortgages may have noticed that they are beginning to appear more and more frequently in the media. Self certified mortgages - which enable the borrower to certify their income without needing to supply standard income documentation – may be extremely popular with the self employed but they are also a cause for concern for the regulatory bodies.

Despite being introduced over ten years ago, it is only over the last few years that significant concerns have been raised over the future of self certified mortgages. Many experts believe that although self certification mortgages have worked well until now, the situation could be completely different should the UK economy take a turn for the worst. The worry is that mortgage lenders have, during the last few booming house market years, relaxed lending rules too far allowing many unsuitable borrowers to qualify for self certified mortgages.

Traditionally self certified mortgages were normally only suitable for the self-employed. However as the UK economy has grown in strength, the attitude towards self certified mortgages has changed, resulting in lenders approving self certified mortgages for a range of applicants such as temporary employees or part-time workers. Moreover, there are concerns that desperate house buyers may lie about their income in order to secure themselves a mortgage.

These concerns have been thoroughly investigated by the FSA and on the whole it is thought that the majority of those being accepted for self certified mortgages are not being encouraged to exaggerate their income and that they are fully suitable for self certified mortgages. This is thought to be as a result of a push for lenders to tighten up their procedures in detecting more fraudulent applications. Although normally this would suggest that the future of self certified mortgages and self cert remortgages is secure, the regulatory bodies still seem to be concerned over the possibility for future abuse of the system.

So what does all this mean for the average borrower interested in self employed mortgages? The changes in regulation which have so far taken place may mean that it is more difficult to obtain a self certified mortgage. However, it also means that you are only likely to be accepted for this type of mortgage if you are really suitable for it. For those borrowers who are bent on obtaining a self certified mortgage regardless of whether they have to lie about their earnings, the future may indeed be bleak but for those who are interested in self certified mortgages as they genuinely meet the self certified mortgage criteria, the future looks bright.

Terry Ruddy is the Sales & Marketing Director of The Mortgage Broker Ltd one of the fastest growing mortgage brokers in the UK. To read more articles on self cert mortgages please visit the self cert mortgage centre.

Directorycontest - May the best Directory Win!

2007-01-02T23:08:00.000Z

Mike Dammann has started a directory contest.
It is simple you will have to rank first in google for keyword directorycontest.com .
May the best directory win. Remember onsite optimization is not allowed in contest.
The First prize is 2000$.
Visit directorycontest.com for more info!

Credit Cards for Students

2006-12-28T10:40:00.000Z

In today’s world, having a credit card is more and more a luxury.
Credit cards are of great convenience, meaning that you don’t need to worry about cash when making any purchase. Although some credit cards have strict requirements, there are a lot of manufacturers that are giving both high school and college students the chance to hold their own credit cards. Student credit cards can be used the same way as any traditional credit card, though they do come with certain limitations and restrictions that other cards normally don’t have.

A lot of companies and banks that offer student credit cards will normally need a co-signer as a form of insurance or collateral. This person will sign on the loan with the student, and will be the person the company falls back on if the student is unable to pay the bill. Normally a parent or guardian, the co-signer is considered to be back up and a peace of mind for the issuer of the student credit card, as they can always count on the co-signer with good credit to pay if the student can’t.

Normally, the APR or interest rate is higher with student credit cards, which helps to minimize the risk for the company. The spending limit is also different with these credit cards, as most are between 250 - 800 dollars. The reason for this, is because most students have established any credit, and therefore won’t have a great credit rating. Although the spending limit is obviously lower with these cards than other credit cards, they will still help students establish credit.

Students who plan to make a large purchase, can greatly benefit from using student credit cards. To make large purchases, you’ll need good credit - which is where a student credit card can really help out. You can use these credit cards as a stepping stone to building credit, and establishing a good credit rating. If you can get your credit rating high with your credit card, you’ll then be able to be approved for much higher loans in the future.

Student credit cards can also help students gain a sense of responsibility. The card works just like any other credit card, although the spending limit is much lower. Once the student has mastered usage of the card, he or she can manage money much better later on in life. These cards are great for students to have, and can teach them money skills that will last a lifetime.

Just like traditional credit cards, students should also know that student credits cards can be dangerous. Although they are great to have, there are pitfalls such as overspending. If students spend more money than they having coming in, they will be unable to pay their credit card bill, which will then affect their credit. If the company goes after the co-signer to pay the bill, it could also affect their credit as well. Therefore, students should always have a budget in mind before they start using their credit cards.

All in all, student credit cards are great to have. For high school students or college students, these credit cards are a means of freedom, and a way to teach responsibility. They can come in handy during emergencies, which is reason enough to invest in them. If your son or daughter is in school right now, you should look into student credit cards. They can help your child to establish credit - which will take them farther wherever they go in life.

Add Link Online

2006-12-20T10:31:00.000Z

Do you have a finance realated site and don't know how to buid traffic to it, nor how to get links to your website? Then you must have been missing this: - http://www.addlinkonline.com - a cool site where people can add their links for a very low fee and still get excellent internet exposure.

Take a look at http://www.addlinkonline.com and buy a link there, in less than a few hours you'll get a fine traffic increase and still get a very strong backlink, as the owner is heavily promoting it. No, this is not just another world cloud website, this cool place uses a unique script with very nice and easy to use features.

Mobile ATM Machines

2006-12-05T10:50:00.000Z

We all want to diversify our investments. Mobile ATM machines are an excellent way to earn passive income with a small investment. You may be surprised to know that most ATM machines you see out in public are not owned by banks. Instead they are owned and monitored by individuals like you and me.

Often it's not even necessary to purchase the ATMs you are making money from. Many companies offer ATM rentals for a reasonable price. By placing the machine in a location with decent foot traffic, it's not very difficult to earn significantly more from fees than you are paying to rent the machine. For example, special events are an excellent place to put portable ATM machines. Once you have the hang of it, it's very easy to scale out and create a large amount of passive income from multiple locations.

Next time you are out, take notice of all the non-bank-owned cash machines you see. There are a lot of people making money from ATM machines these days, should you be one of them?

Online Trading, what about it?

2006-12-02T19:36:00.000Z

The Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell stocks online. Traders love to have the ability to look at their accounts whenever they want to, wherever they are, and brokers like having the ability to take orders over the Internet, as opposed to the telephone, it's cheaper, faster and safer.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.

You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!

Credit Card Costs

2006-11-20T15:18:00.000Z

Although some choose to rush into getting a credit card, they normally do so without being aware of the costs. A lot of credit cards out there come with hidden costs and charges, and you should always be aware of this before you apply. In most cases, these fees and charges won’t get noticed by the user until it is too late.

Credit card holders who aren’t aware of any hidden costs could easily end up paying possibly thousands of dollars at the end of the year - and not even realize it. If you have a reward credit card, your rewards could easily be destroyed by these hidden costs. Although some credit card users may realize it, there are many out there who aren’t aware of these costs at all.

The first factor for hidden costs is found in the grace period. The grace period is the extra time you have to pay your bill without having extra fees added to your bill. Even though this can be great for paying your bill, it can quickly lead to a pitfall if you let it. To avoid any type of costs or hidden fees, you should pay your bill as soon as it arrives. This way, you won’t have to worry about your grace period or the interest that can accrue from letting your bill get later and later.

The late fee is another factor with credit cards that is often overlooked by credit card users. Late fees are common with credit cards, although their potential for costs is often overlooked. Some people choose to pay it and be done with it, unaware of the fact that these costs can indeed add up in no time at all. To be on the safe side, you should always know what the late charges are and how fast they can add up.

The easiest way to avoid any type of hidden fees or costs is to pay your bill on time - as soon as you receive your bill. You should also pay more than the minimum, as this helps to pay your bill off faster and ensure that you pay the bill and not just the interest. Paying your bill late is never a good thing, as it can easily destroy your credit report. If you continue to make late payments, your company or bank can increase your interest rates.

No matter what you do, you should always pay your credit card bill on time. Hidden fees and costs are out there - it’s up to you to avoid them. Credit card companies and banks won’t tell you what the hidden fees are, unless you ask them. To protect yourself and your credit - you should always be aware of the costs - and how to prevent them from happening to you.

Debt Consolidation Yellow Pages

2006-11-14T10:59:00.000Z

P potter is a great resource for financial yellow pages. It provides debt consolidation yellow pages, banks yellow pages, information on credit card companies, insurance and many more.

P potter is a free yellow pages project started by Aryan LLC to provide free busines information. So if you also wants to add your business information free of cost, just submit your website to P Potter yellow pages.

How to Know When to Sell Your Stocks

2006-11-07T17:28:00.000Z

While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.

You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.

Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.

You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.

The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.

This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop.

If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.

As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.

Map100 Directory

2006-11-05T16:02:00.000Z

Today i stumbled upon this what looks like new directory on a old domain name. All i can say is good for the domain name, since the site looks much better as a directory. The design is really cool, expect to hear more from this directory in the future. Oh, their slogan is pretty cool too. "Map100.com - Mapping users to the best websites".
Keep an eye on this!

International Medical Insurance

2006-10-23T15:12:00.000+01:00

Pacific Prime International is an International Insurance advisor offering a wide range of , medical, motor, home, travel, fire, life, business and savings and investment plans for individuals, families, groups and companies.

As we all know insurance is important to protect you, your family and your business.
Should you be buying a new car and looking for the best quote for your car insurance, or you're a frequent traveller and are looking for International Medical Insurance, Pacific Prime International will always try to serve you the best possible way and find the best solutions for your particular needs.

Pacific Prime large experienced professionals have the best tools to provide you the best service wherever you are or wherever you'll need them.

Contact them and see what they can do for you!

Choosing Your Reward Card

2006-10-17T17:19:00.000+01:00

When you are in the market for a new credit card, the features you have to choose from may draw you to the card. Low interest rates and the types of rewards you can get, are what draw many to reward credit cards. Those of you who have good credit, will more than likely be able to get reward cards that boast 0% APR. This does have an introductory period, normally 1 year, that goes along with your new reward card.

You’ll also need to think about the type of card that best fits your lifestyle. The credit card field is very competitive, meaning that you always have a lot of offers to choose from. Reward cards and becoming very popular, with more and more coming out all the time. If you look for your reward credit card on the Internet, you’ll be able to compare hundreds and hundreds of offers - and decide which one is indeed the best for you.

Those of you who travel on a frequent basis, may find frequent flyer reward cards to be very beneficial. These credit cards will accumulate either points or miles for every dollar that you spend. You can then use the accumulated points or miles and redeem them for airline travel, hotel reservations, car rentals, and even cruises. These credit cards can also help you with discounts as well, which can make a vacation or business trip more affordable than ever.

If you like to pay your full balance at the end of every month, then you may find a reward credit card with a cash back feature to be the most enticing. There are some cards that offer cash rewards of up to 5%, which can equal quite a bit at the end of the year. All you need to do with cash back reward credit cards is make a purchase, and you’ll get money back for everything you buy.

Other types of reward credit cards include discounts on gas purchases, contributions to your savings account, and points that you can redeem for great items and things of that nature. No matter what your lifestyle may be, you can almost always find a reward credit card that fits your needs and interests. Reward credit cards are great to have, as you can buy the things you need and earn points, flyer miles, and even cash back.

If the sound of rewards with your credit card purchases sounds enticing, you should look into getting a reward credit card. These cards are great to have, as most include low APR with great reward incentives. They can save you money as well, which is great for those on a budget. With a reward credit card - no matter what you choose you’ll come out a winner.

Keep an eye on your Investments

2006-10-06T15:03:00.000+01:00

Have you recently bought any paintings, stamps or art sculptures?
Are you the kind of person that hates the financial markets and rather prefers to invest your money on tangibles?
Now that is great news!
But, just wondering, are you taking real care of your investment?
I know you’ve got all those insurances and so on, but what about you?
Are you looking at your stuff?
Well, you should…

Now you can have an eye on your goods 24x7, 365 days per year using Security Cameras.
There are various Security Cameras Systems available on the market, check those out and learn how they can help you protect your investments, how you can use CCTV to protect your house or your office.
Security Cameras are the best way you can possible find to control what happens around you, who access what, and more important who’s touching that $5000 sculpture you bought last week.
Take care and remember to check out CCTV Security Cameras Surveillance Systems.

It’s always better to be safe than sorry!

Stocks and Mutual Funds

2006-10-01T23:23:00.000+01:00

I was recently searching the internet for new investment information
resources and found this site:
Stocks and Mutual Funds , which happens to be a great information source for everyone looking for this kind of material.

At Stocks and Mutual Funds you have a whole set of articles, glossaries, tips and advices for the the best deals about stocks and mutual funds. There's even a 401(k) section for those that are considering this kind of investment now, a section where you can find all the relevant information needed about the 401(k).
From the beggining investor to the most experienced one, you'll find yourself in the middle of one of the best resource sites around, something with a simple design, easy navigation, fast loading and extremly pleasant to visit often.
Go on, take a look... - http://www.stocksandmutualfunds.com/

Protect yourself against Fraud

2006-09-22T12:05:00.000+01:00

We all know that criminals are out there, waiting to steal our credit card information. These very criminals want credit card information so they can run up the charges then leave you holding the bags - with nothing to show for it. Even though some are local, most credit card criminals are in far away lands. Worse than that, they like to hide or go by other names so it’s virtually impossible to track them down.

The most common way for criminals to get credit card information is through phishing, which involves a fake email that appears to be sent from your credit card company. Normally, this fake email states that there was an error with your account, or that it was accessed by unauthorized personnel and needs your attention.

Spotting fake emails isn’t hard to do - as long as you know what to look for. The most obvious hint for most, is the fact that they don’t even have a credit card from the company that has sent the email. For others, the link is what gives the fake email away. Anytime you get an email from a credit card that you believe to be fake, you should always hover your mouse over the link, then “right click” the link with the mouse and select “view source”. If the link is indeed fake, the website address that comes up will be something other than that of a credit card company.

The criminals don’t want you to look at the source for their website, as they simply want you to click on the link before you look at anything else. Once you have clicked on the link, you’ll arrive at a website that is usually an exact copy of a credit card website. Fake sites normally include everything that the actual site does, including the logos and banners. Even for the most amateur of credit card criminals, web pages like this are very easy to create.

Those of you who have fell victim to this scam, probably realized what you have done little too late. Once you have entered in your credit card information, you have done exactly what the criminals wanted and put yourself in violation of credit card fraud and identity theft. Once the criminal has your social security number and credit card information, he is more than likely to use that information to go on a shopping spree - stealing your money and running up your account.

If you receive an email such as this, you should always delete it. Even if you just click on the fake website to investigate, you may do more harm than good. Even though you may not enter any information at all, your computer may get infected with viruses or spyware simply because you clicked on the link. To avoid this altogether, you should never click on a link that you believe to be a fake credit card company website.

If you do your part and protect your credit card information, you won’t have anything at all to worry about. Your personal information is very important, as you never want it to fall in the wrong hands. As long as you protect it, you won’t have anything to worry about. There are always criminals out there, which is why you should always be on guard. Criminals want your personal information and your credit card numbers - it’s up to you to ensure that they don’t get it. A criminal will do anything to get what they want, which is why protecting yourself is so very important these days.

Investment Errors

2006-09-07T11:51:00.000+01:00

The Wall Street Journal once posted had an article about Investment Errors and how to avoid them. As we think the article is quite good, we leave you with a summary from that article, and the errors you should try to avoid:

Not following an investment objective when building a portfolio.
Buying too many mutual funds.
Not researching a one-product stock before buying it.
Believing that you can pick the market highs and lows (time the market).
Taking profits early.
Not cutting your losses.
Buying the hottest {stock, mutual fund} from last year.

On a finalnote, get this quote on timing:

"In the 1980s if you were out of the market on the ten best trading days of the decade you missed one-third of the total return."

Dodge Challenger Forums

2006-09-06T22:52:00.000+01:00

Of we go to our last post before getting back to business.
This reminds me that I should soon start something related to "Motors",
as the quality of the blogs and sites I've found recently is increasing
dramatically.
Just look at my last discovery:

Dodge Challenger Forums

In this site you can find everything you want related to the Dodge Challenger, including the new 2008 Dodge Challenger.
You can find photos, reviews and news about this car and also one of the best forums I've found so far, with a large group of enthusiats, polite and informed people willing to help the newbie and the senior admirors of the "Dodge".
Take a look, and prepare yourself to get back to business in a few days.

Full speed we go...

Mustang - The Passion

2006-09-05T11:17:00.000+01:00

Preparing to get back to our investment business in a few days, it's still time to spend some of the money we've hardly earned.
Today we're going to look at the Ford Mustang, and no place is a better place to learn more about it than from the Ford Mustang website.

In this website you can find all the relevant information you need about this car, all the models, details, news and photos, discussion forums, classifieds, etc.
This happens to be the best resource I've found so far related to the Mustang.
Should you be looking for some "speedy fun" or just for another investment trading these cars, remember to always to take a look first at the Ford Mustang website.

Investment Stories

2006-08-20T18:44:00.000+01:00

The following books offer stories from finance insiders about the trading business and the investment world.
Some are fiction, some are non-fiction.
They probably won't help you out in picking stocks, but they're a good read if you're interested in finance and markets.

Po Bronson - Bombardiers
Connie Bruck - The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders
Bryan Burrough and John Helyar - Barbarians at the Gate: The Fall of RJR Nabisco
Daniel Fischel - Payback: The Conspiracy to Destroy Michael Milken and His Financial Revolution
Edwin Lefevre - Reminiscences of a Stock Operator (this is maybe the best book in the world about investing) - see also Jesse Livermore - Trading Rules
Michael Lewis - Liar's Poker: Rising Through the Wreckage on Wall Street
Charles MacKay, Josef De La Vega, and Martin S. Fridson - Extraordinary Popular Delusions and the Madness of Crowds and Confusion De Confusiones
Victor Niederhoffer - The Education of a Speculator
Jim Rogers - Investment Biker: Around the World with Jim Rogers
James B. Stewart - Den of Thieves

We will soon be publishing a full list of books written specially for advanced Investors. Pay us a visit soon and you won't regret your time.

***

If you are looking for other book sources take a look at:

Books for Beginning Investors

and

Intermediate Investors Book Guide

Kondoc Audi News

2006-08-18T16:13:00.000+01:00

Now that you’ve worked hard enough, now that you’ve invested your time and money and already have profits from it, it’s time to spend some of it and get ready to have a good time with your purchase.

In this so called "Investment Business", a good rule of thumb is to always withdraw part of your profits.
It’s important to keep this rule in mind, but more important is to really follow it.
What shall we buy then? What shall we get? Where will we spend our hardly earned money?

Well, I give you a little clue…

Get yourself an Audi Q7!

This SUV joins the best of the worlds, sportiness and versatility, sophisticated technology and the luxury of a premium-class vehicle!
Find out more from this car at the Kondoc Audi News website, there you’ll have the details you need and I assure you will have the fun of your life.
The creator of the Audi Quattro just won’t let you down!
Kondoc Audi News is a website dedicated to Audi Cars, having all the news and details you need in a clean and fashion way.
The best I found so far!

Ledger Services Ltd

2006-08-18T15:31:00.000+01:00

Being an IT professional myself, I was recently looking for a reliable offer for the construction area.
This kind of software/solution is hard to find, and even harder is to get a complete integrated solution that joins a good software, something integrated that provides an all-in-one solution for every day needs, and a provider that has the services, but more important than that, the knowledge to implement it and do a really good job at it.

Then I found Ledger Services Ltd. , an UK provider that has all that and much more.
Their Sage Construction Solutions has all the answers you need to get. A full integrated software package, experience in providing solutions for the construction area, and a team of consultants ready to help you out with your needs.
Find out how they can help you achieving your goals in less than a fraction of what you’re looking for.
Take a look...
Ledger Services Ltd. At your service!

OIOReviews

2006-08-18T00:05:00.000+01:00

Business runs at the speed of light, that is well known, and these days nothing is a better way to reach your targets than using the web.
Not new again? Yes, we know that.
What is new is that providing the "Zillions" of websites around, only a few will reach top rankings and even fewer will in fact be noticed.
If you're investing on the web, or using it as part of your investments, then you'd better take a look at OIOReviews.

At this website you can find the best tools to get your head out of the water and make people know you exist! In this website you can find the key to your "Hello World!"
Ask for a Website Review at OIOReviews and notice the results a few minutes later.
Come on, give it a try! Check out for more, you won't regret it.

Bank Car Loans

2006-08-07T16:30:00.000+01:00

People need to work to survive. Their desire to maintain better and better lifestyles forces 13% of workers to drive over 200 miles a day to get to work. These so called "stretch commuters" make most of these trips in their personal vehicle, but when it comes to trading in their tired automobiles for a newer Car should they just settle for a bank auto loan?

Stretch commuters do not have a lot of time on their hands. They spend most of their working week either at work, or travelling to and from it. When they get home exhausted the last thing they want to do is to look for the best deal for a Car loan, should it be to buy a new utilitarian vehicle or that Mustang one have always dreamed of. Therefore, getting a bank auto loan is the easiest and most convenient option.
Let's take a look at some of the advantages and disadvantages of it:

Advantages of bank auto loans

1. Convenience - Most consumers with checking accounts have held their account with one bank for a number of years. It’s easier to manage finances if check accounts and a bank auto loan are held in one place.

2. You know your own bank - Banks have strong brands and financial strength. They have spent years building a good reputation in society. This engenders trust from their customers who may find it daunting to take out a Car loan from an unknown finance source.

3. Lower rates than Car dealers - Bank auto loans will probably be able to provide you with lower interest rates than dealer loans. Most banks will offer to pre-approve customers for their loans so that they will have better bargaining power on the Car lot.

Disadvantages of bank auto loans

1. Not necessarily the best rates - Even though banks have financial strength they may not be able to offer the best Car loan rates.

2. Placing All your eggs in one basket - Everyone has heard that saying and although it may be convenient why should consumers place all their finance needs with one institution.

3. Perfect or excellent credit preferences - People that have Car loan bad credit or a damaged credit score for any other reason may be turned away. They may have to finance their Car by taking out a bad credit loan and may find that this is not offered by their bank.

Even though free time may be scarce for these people, and anyone who has a need to finance a Car for that matter, researching all relevant products with banks, credit unions and auto finance specialists is worthwhile. Go online as rates, terms and product benefits can all be researched from the comfort of home. Investing a little time, rather than opting for the ease of taking out a bank auto loan could help you out in buying the Mustang you’ve always wanted.

Short Selling Stocks

2006-07-25T17:10:00.000+01:00

The short sale of stock is a bet that the price of a stock will decline.
Here are the mechanics. You decide that XPTO at a price of $110 is at or near its peak. You feel that XPTO will decline in price from this level. So you want to short the stock. You tell your broker you want to short 100 shares of XPTO at 110. You borrow from your broker 100 shares of XPTO at $110 and sell it to someone else.

This is the nature of the short sale. You're selling something which you borrowed. Again, you borrowed 100 shares of XPTO at $110 and sold it to someone else. You actually borrowed the 100 shares of XPTO from your stockbroker. He either has it in inventory or he borrowed it from a client or another brokerage firm. Either way, it is your broker who loans you the stock to sell to someone else.

So now what happens. Hopefully, the price of XPTO goes down for you. Let's say that XPTO declines to $85. At 85, you decide that XPTO may not decline much further, if at all. So you want to take your profits. How do you do that? You now buy 100 shares of XPTO at $85 and pay your broker back the 100 shares of XPTO. You borrowed the stock at 110 and paid it back at 85. You made $25 per share in profit or $2,500. You sold the borrowed stock for $11,000 and bought it back for $8,500.

Conversely, suppose the price of XPTO goes up to $125. The investor would have sold the stock for $11,000 and now might want to get out of the position. He would now have to go into the market and buy 100 shares of XPTO for $12,500. He would then be returning the loaned stock at $12,500. In this case, he has a loss of $1,250.
The potential loss on the short sale of stock is unlimited. This is because a stock can theoretically rise infinitely. Therefore, to protect himself, the short seller should always use a 'buy stop' order GTC (Good Till Canceled). The investor might decide that if the price of XPTO rises $5 he wants to get out of the position. He would place a buy stop order at $115. Then, if the price of XPTO rises to 115, he is assured that he will get out at about 115. Remember, a stop order becomes a market order when hit. Therefore, there is no guarantee that he will get out exactly at 115. But he will get out at 115 or about 115. One can also place a limit order when he wants to get out of a short position which went up. This will get him out at exactly that price. However, there is no guarantee that the trader will get out. He could miss the market.

You may also want to get out of a short trade when you have hit a certain amount of profit. In this case, the investor would use a buy stop at his maximum loss level and a buy stop at his profit target level. This is called an either/or order. You are placing two orders to protect you if the stock rises and to take profit if the stock declines. By the way, this either/or type of order can also be used when buying stock. You can protect yourself against a loss if the price declines and also to take profits when the stock rises.

For the most part, brokerage firms do not place a time limit on the shares of stock they loan. This is because they make a commission both ways. And also, they want to keep the customer happy. Also, you should know that a short sale can only be made on an uptick in that particular security. That is, if you want to short a stock at 110, the short sale can't be made unless the previous trade was at 109-7/8 or lower. Otherwise, in a rapidly declining market, short selling into the decline would aggravate the decline. And remember, the ticker tape is a continuous tape. It doesn't start new every day. So today is a continuation of yesterday. You can't get around the uptick rule by waiting for the next day.

The Money Market

2006-07-20T12:29:00.000+01:00

Generally, corporations raise money by issuing long term debt and equity instruments. The money market is the a market which is used for buying and selling short term loanable funds in the form of securities and loans. Money is not what is traded in the money market. Short term loans are traded which can be converted into cash rather quickly. The buyer of a money market instrument is the lender. The seller of the money market instrument is the borrower. Money market instruments have a maturity of one year or less. Most have a maturity of six months or less. The majority of money market instruments are issued at a discount. This means that the lender of the money does not receive interest payments. Rather, you might lend $96,000 and receive $100,000 at maturity. For the most part, $100,000 is the minimum amount which is traded in the money market. Money market instruments are regarded as quite safe. Of course, there are some instruments which are considered more safe than others. T-Bills are considered safer than commercial paper. Nevertheless, they are all considered low risk.

The money market trades both corporate and government debt securities. T-Bills are the majority of what's traded in the money market. However, Treasury Notes are also traded. Treasury Notes have maturities from one year to ten years. T-Bonds are also traded. However, the only T-Bonds traded have one year or less to maturity. One of the greatest advantages to the Money Market is the great liquidity. It is such a huge market that the spreads are kept relatively low. Also, interest earned from the Money Market is free of state tax. One last feature of the Money Market is the absence of business risk.

Convertible Bonds

2006-07-20T12:22:00.000+01:00

A convertible bond is one which is convertible into a company's common stock.
The conversion option to the bond is exercisable when and if the investor wants to do it. The conversion ratio varies from bond to bond. The terms of conversion are set forth in the indenture. The exact number of shares or the method of determining how many shares the bond is converted into is printed in the indenture.
Many times the indenture will tell you how many shares of stock the bond is convertible into. For instance, it might say that it is convertible into 20 shares.

Therefore, the conversion ratio is 20:1. Unfortunately, it's not always that easy. For instance, the indenture might state the conversion price. The conversion price is the price per share that the company is willing to trade their shares of stock for the bond. For example, if the indenture states that the conversion price is $50 per share, the bond is convertible into 20 shares of stock. You divide the par value (usually $1,000 for corporate bonds) by the conversion price. Occasionally, the indenture might state that the conversion ratio will change through the years. For example, the conversion price might be $50 for the first five years, $55 for the next five years, and so forth. There are also anti-dilutive features to the conversion feature. If the stock were to split 2 for 1, and the conversion ratio was 20 to 1 prior to the split, after the split, the conversion ratio would be 40 to 1. A stock dividend would also have the same effect. A stock split would also reduce the conversion price.
Because convertible bonds have a little something extra, the right to convert to common stock, that little something extra costs the bond holder. The bond will usually carry a slightly lower interest rate. If the stock price rises, the bond price will also rise. Since most convertible bonds are also callable, the company can force the bond holders to convert the bonds to common stock by calling the bonds. This is known as 'Forced Conversion'. When a bond is converted to common stock, the corporate debt is reduced. What was formerly debt has now been converted to equity. Of course, converting debt (bonds) into stock (equity) has the effect of diluting the equity. The company didn't get any larger with the additional stock. But each stockholder's piece of the pie got smaller. If the company's stock declines to a price which makes the convertible feature of the bond worthless, as long as the company is solvent, the bond will trade based on its yield - like any other bond. There is a price level to which a bond will fall and fall no further as long as the company can pay its interest and the principal upon maturity.
One other term to know is 'Parity'. If the $1,000 convertible bond is convertible into 50 shares of stock, the parity price of the stock is $20. If the stock moves up to $25, for the stock and bonds to be at parity, the bonds would have to be trading at $1,250.

Adapted

Pay Off Mortgage Early or Invest in Stocks?

2006-07-14T16:04:00.000+01:00

If you're considering paying additional principal each month towards a mortgage versus investing in some sort of vehicle such as stock or a mutual fund, you need to weigh the risks and rewards carefully.

Some people will give you the following argument, which I would classify as the "agressive investor's viewpoint." I personally don't find this argument compelling, but you should be aware of it so that you can understand and analyze it.

Paying a 7% mortgage off early in effect "earns" 7% interest, which is totally absolutely guaranteed ... or does it really earn that much? Because mortgage interest is deductible, you may in fact only be paying out about 5% to 5.5% net, depending on how old the mortgage is and therefore how much interest you are paying with each payment. Therefore, what you "earn" by paying it off early may be much lower than the nominal rate on the mortgage.

The second consideration is expected return from any investments you make such as an index fund. If you plan on investing after-tax dollars (i.e. NOT an IRA or 401(k)) and you obviously don't seem to need the money and therefore have a long time frame, your gross return ought to be 12%, your after-tax net ought to be perhaps 8%. This is the best guess based on historic returns.

To summarize, the agressive argument basically claims that your investments in the stock market will pay off more than the return on paying down the mortgage. The problem is that you could be risking your home trying to arbitrage a 3 or 4 percent difference in returns, and falsely believing that Uncle Sam will pay you to do it. Then there's the more conservative viewpoint, which I believe is more appropriate for the vast majority of people. This argument goes more along these lines.

Contrary to current popular opinion, investments in financial assets are 100% at risk. The risk factor is why the returns are better. You do not get returns higher than T-Bill rates without assuming substantial additional risk. Period. Your mortgage rate is probably higher than T-bill rates, so on an 'apples to apples' basis, paying off the mortgage is a no brainer. You get a risk free pay-off at better than the current 'risk free' return. Savings and debt payments do not belong in the market. 'Risk capital' belongs in the market.

If your house is paid for, and you have accumulated savings to cover emergencies, then you can start to nibble in financials. If you are 'investing' mortgage proceeds or savings, you are simply falling for the bait laid by the Wall Street sharks. There is no 'safe' investment except cash (and that is only as safe as the good will afforded your government). To believe otherwise can be disastrous.

To think about it a different way, making this decision would be easy if you had a reliable crystal ball that could tell you about the future returns of stocks as well as home appreciation rates. Since most of us don't have a crystal ball that lets us peer into the future, choosing a low-risk path is probably the most advisable course of action for most people.

Don't overlook the fact that the arguments presented above are basically extreme ones, attempting to answer the question of whether you should put all your extra cash into the market versus your mortgage. I think the right answer is somewhere in between.

Of course it's nice to be debt free, but paying down your debts to the point that you have no available cash could really hurt you if your car suddenly dies, etc.

You should have some savings to cushion you against emergencies.

And of course it's nice to have lots of long-term investments, but don't neglect the guaranteed rate of return that is assured by paying down debt versus the completely unguaranteed rate of return to be found in the markets. In short, each person needs to find the right balance for his or her situation.

adapted from http://invest-faq.com

Intermediate Investors Book Guide

2006-07-11T12:03:00.000+01:00

Now that you're a better investor and would like to learn even more about this business, take a look at the new list I present you with.
These books assume you're comfortable with the basics of stocks, mutual funds, bonds, and other securities. They offer many investment strategies: what to buy, what to sell, and when to do so.

Ted Allrich and William O'Neil - The On-Line Investor: How to Find the Best Stocks Using Your – Computer
Peter Bernstein - Against the Gods: The Remarkable Story of Risk
Peter Bernstein - Capital Ideas: The Improbable Origins of Modern Wall Street
John C. Bogle - Bogle on Mutual Funds
James W. Broadfoot - Investing in Emerging Growth Stocks
Mary Buffett and David Clark - Buffettology: The Previously Unexplained Techniques That Have Made
Warren Buffett - the World's Most Famous Investor
Frank Cappiello - New Guide to Finding the Next Superstock
Charles B. Carlson - Buying Stocks Without a Broker
Samuel Case - Big Profits from Small Stocks: How to Grow Your Investment Portfolio by Investing in Small Cap Companies
George S. Clason - The Richest Man in Babylon
Burton Crane - The Sophisticated Investor
John M. Dalton - How the Stock Market Works
Nicolas Darvas - How I Made 2,000,000 in the Stock Market
William Donoghue - Mutual Fund Superstars
David N. Dreman - Contrarian Investment Strategies: The Next Generation
Stephen Eckett - Investing Online: Dealing in Global Markets on the Internet
Kenneth Fisher - Super Stocks
Norman G. Fosback - Stock Market Logic
David Gardner and Tom Gardner - The Motley Fool Investment Guide: How the Fool Beats Wall Street's Wise Men and How You Can Too
David Gardner and Tom Gardner - You Have More Than You Think: The Motley Fool Guide to Investing What You Have
Gary Gastineau - The Stock Options Manual
Michael Gianturco - How to Buy Technology Stocks
Benjamin Graham and Warren E. Buffett - The Intelligent Investor: A Book of Practical Counsel
Christopher Graja and Elizabeth Ungar - Investing in Small-Cap Stocks
C. Colburn Hardy - The Fact$ of Life
Investor's Business Daily
Investor's Business Daily Guide to the Markets
Harvey C. Knowles and Damon H. Petty - The Dividend Investor
Robert Lichello - How to Make $1,000,000 in the Stock Market Automatically
Jeffrey B. Little and Lucien Rhodes - Understanding Wall Street
Gerald M. Loeb - The Battle for Investment Survival
Peter Lynch and John Rothchild - Beating the Street
Peter Lynch and John Rothchild - One up on Wall Street also available: audio cassette edn.
Geoffrey A. Moore, Paul Johnson, and Tom Kippola - The Gorilla Game: An Investor's Guide to Picking Winners in High Technology
William J. O'Neil - How to Make Money in Stocks: A Winning System in Good Times or Bad
James O'Shaughnessy - How to Retire Rich: Time-Tested Strategies to Beat the Market and Retire in Style
James P. O'Shaughnessy - Invest Like the Best: Using Your Computer to Unlock the Secrets of the Top Money Managers
James P. O'Shaughnessy - What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time
Carl H. Reinhardt, Alan B. Werba, and John J. Bowen - The Prudent Investor's Guide to Beating the Market
Hildy Richelson and Stan Richelson - Straight Talk about Bonds and Bond Funds
L. Louis Rukeyser - How to Make Money in the Stock Market
Terry Savage - New Money Strategies for the 1990's
Charles Schwab - How to be Your Own Stockbroker
Dhun H. Sethna and William O'Neil - Investing Smart: How to Pick Winning Stocks With Investor's Business Daily
Robert Sheard - The Unemotional Investor: Simple Systems for Beating the Market
Jeremy J. Siegel - Stocks for the Long Run
John A. Tracy - How to Read a Financial Report
John Train - New Money Masters
Venita Vancaspel - Money Dynamics for the 1990s
John G. Wells - Kiss Your Stockbroker Goodbye: A Guide to Independent Investing
Martin E. Zweig and Morrie Goldfischer - Martin Zweig's Winning on Wall Street (revised and updated)

Books for Beginning Investors

2006-07-07T17:47:00.000+01:00

If you're a beginner and would like to learn more than we can provide at The Investment FAQ, then these books are for you.
They concentrate on personal finance, budgeting, and also offer some introductory material on basic investment strategies.

Barbara Apostolou, Nicholas G. Apostolou- Keys to Investing in Common Stocks (Barron's Business Keys)
Janet Bamford, Jeff Blyskal, Emily Card, Aileen Jacobson, and Greg - Daugherty
The Consumer Reports Money Book: How to Get It, Save It, and Spend It Wisely (3rd edn)
Lynn Brenner - Building Your Nest Egg With Your 401(K): A Guide to Help You Achieve Retirement Security
Samuel Case - The First Book of Investing: The Absolute Beginner's Guide to Building Wealth Safely
David Chilton - The Wealthy Barber
Jonathan Clements - 25 Myths You'Ve Got to Avoid If You Want to Manage Your Money Right: The New Rules for Financial Success
John Downes and Jordan Elliot Goodman - Dictionary of Finance and Investment Terms
Ric Edelman - The Truth About Money: Because Money Doesn't Come With Instructions
Louis Engel - How to Buy Stocks
David Gardner and Tom Gardner - The Motley Fool Investment Workbook
Alvin Hall - Getting Started in Stocks (3rd edn.)
Ken Kurson - The Green Magazine Guide to Personal Finance: A No B.S. Book for Your Twenties and Thirties
James Lowell - Investing from Scratch: A Handbook for the Young Investor
Peter Lynch and John Rothchild - Learn to Earn: A Beginner's Guide to the Basics of Investing and Business
Kenneth M. Morris and Alan M. Siegel - The Wall Street Journal Guide to Understanding Money and Investing
Kenneth M. Morris and Alan M. Siegel - The Wall Street Journal Guide to Understanding Personal Finance
Kenneth M. Morris, Alan M. Siegel, and Virginia B. Morris - The Wall Street Journal Guide to Planning Your Financial Future
W. Patrick Naylor - 10 Steps to Financial Success: A Beginner's Guide to Saving and Investing
Suze Orman - The 9 Steps to Financial Freedom
Kenan Pollack and Eric Heighberger - The Real Life Investing Guide
Jonathan D. Pond - 4 Easy Steps to Successful Investing
Jane Bryant Quinn - Making the Most of Your Money
Claude Rosenberg - Stock Market Primer
Kathleen Sindell - Investing Online for Dummies
Andrew Tobias - The Only Investment Guide You'll Ever Need
Eric Tyson - Investing for Dummies
Eric Tyson and James C. Collins - Mutual Funds for Dummies
Eric Tyson - Personal Finance for Dummies
Diane Vujovich - 10 Minute Guide to the Stock Market

Investment Categories in Common Stocks

2006-07-07T11:28:00.000+01:00

When you're trying to determine which stocks to buy, you should be aware of the different types of stocks. After all, one would not consider General Electric to have the same type of investing characteristics as Netscape. They have totally different profiles. One might consider this to be grades, classifications, or categories. These are: Blue Chip stocks, Growth Stocks, Income stocks, Cyclical stocks, Speculative stocks, and Defensive stocks. Keep in mind that these categories mean different things to different people. These are my definitions.

Blue Chip stocks are considered to be the most prestigious stocks on Wall Street. Companies which fall into this category are companies like Dupont, General Electric, IBM, Proctor & Gamble. These companies are well established, high grade investment quality issues. They have usually paid dividends for a long time during good years and bad years.

Growth stocks are those companies which have strong potential for future growth. Growth stocks are usually those companies which put a great deal of effort into R&D and puts its retained earnings back into the company for future expansion. They usually pay small or no dividends at all. Investors are usually willing to wait for capital appreciation which results from this type of management. The market price of growth stocks can be quite volatile. They usually go up or down faster than other stocks. When earnings don't live up to 'analysts expectations', the stock price usually takes a big hit (sharp decline).

There are some stocks people purchase for income. These are referred to as Income stocks. Generally, bonds pay a better current yield. However, there are some stocks which are competitive with these returns. Look for a company which is paying better than average returns because its products or services are superior to others in the industry. Also, make sure that the company is not in an industry which is becoming irrelevant.

A cyclical company is one whose earnings tend to fluctuate sharply with changes in the business cycle. Sometimes this cycle is peculiar to the industry. When business conditions are good, the company's earnings rise and the stock price rises rapidly. However, when business conditions deteriorate, the company's earnings and stock price deteriorate rapidly.

One way to identify speculative stocks are those stocks which may have Price Earnings Ratio's which are at multiples of 50 to 100 when the Dow stocks are trading in multiples of 15 to 20. Another type of speculative stock is a new issue. Many times these stocks have a wild speculative demand. Netscape was a stock like this. It had great potential, a small amount of sales, and a market cap of about $5 billion.

Defensive stocks are those which are stable and relatively safe in declining markets. Stocks which have this characteristic are food companies, drug manufacturers, and utilities. They tend to decline less in recessions. And their products are necessary in any economic climate.

Types of Orders

2006-07-07T11:18:00.000+01:00

The market order is probably the most common. When you place an order at the market, you are telling the broker to buy or sell the stock at the best possible price at that time. A market order will always be filled. The catch is that it may not be filled at the price you expected or wanted. For instance, you want to buy XYZ. You call your broker and he tells you that XYZ is currently trading at 95 bid 95-1/8 ask. The bid is the price the specialist is willing to buy the stock at. The ask is the price the specialist is willing to sell the stock at. You tell him to buy 100 shares of XYZ at the market. When the broker gets back to you, he tells you that he bought 100 share of XYZ at 95-3/8. What happened? Between the time you gave the broker the order and the order was filled by the specialist, the price went up. Keep in mind, that the price of XYZ could have easily been filled at 89-7/8 had more people been selling rather than buying at that time.

A 'Limit Order' is an instruction by you to your broker to buy or sell a specific amount of stock at a specific price or better. If the price you specify is not within the current market quote, it is said to be 'away from the market' and will be entered into the specialists book beneath any other orders in the specialists book. What this means is that there are shares ahead of you. Orders in the specialists book get filled in the order that they were received. This happens quite frequently. In fact, the other day, we had this with a trade. We left an order, which was our stop loss order, actually a limit order, to close a position if the stock hit a certain price. The stock did hit the price. However, there were orders ahead and we never got filled. We were left in the position. There is no guarantee that a limit order will ever be filled.

When deciding whether to place a limit order or a market order, the trader needs to evaluate the tradeoff between a guaranteed fill which might be different than what you expect, and getting the price you want but perhaps not getting filled. It all depends on your analysis and your needs. A stop order is an order which becomes a market order to buy or sell once the stock hits the target price. Generally, I use stop orders when I definitely want to get out of a stock, and limit orders when I want to get my price.

There is also a stop limit order. A buy stop limit means that as soon as a trade occurs at the target price, the order becomes a limit order to buy. A sell stop limit order means that as soon as the stock hits a target price, the order becomes a limit order to sell.

There are also three types of orders which can be placed with respect to the duration of time the order stays open. The first is called a 'Day Order'. A day order is good just as the name implies: for the day only. At the end of the day if the order is not filled, it goes in the trash.

The second type of order is called 'Good Till Canceled' (GTC). An order which is Good Till Canceled, GTC, means that until you tell your broker to cancel the order, the order remains open on the specialists book and can be filled any time. In practice, however, a GTC order has to be reconfirmed by the broker twice a year (every six months). This is not six months from the time the order was placed. The exchanges decided that the last business day in April and the last business day in October are the days when GTC orders must be reconfirmed. After all, how would you like it if you placed a GTC order two years ago, forgot about it, and then found out two years later that you had just sold or purchased a particular stock.

The last type of order is most frequently used in options and futures trading on a day trading basis. However, it may also be used in stock trading. And not all firms will accept it. It's called a 'Fill or Kill' order. Usually, it's placed with a time limit. For instance, a '10 minute fill or kill' means that if the order is not filled in the next ten minutes, kill the order. A few years ago, the best options broker I ever dealt with didn't take these orders. However, after discussing it with them, they said that they had no problem me calling back in ten minutes or what ever time frame and canceling the order. So I did that. It's a lot easier when we go right to the floor now.

How to open an Account and Trade Stocks

2006-07-05T10:39:00.000+01:00

You don't have an account with a brokerage house and you want to buy/sell stocks?

The first thing you need to do is decide if you want an account with a full service brokerage firm, a discount brokerage firm, or both.
The choice depends on the individual. Are you the type of person who wants research reports and advice from the full service broker?
Are you the type of person who knows what you want to buy and just needs the broker to take the order and get it filled?
Or do you want to place a few trades through each and have access to research reports from the full service broker?
The choice is yours.
Remember that a full service broker is going to charge you significantly more than a discount broker. Setting up the account is relatively easy. The firm will send you an application form which is similar to opening up a savings or checking account. Fill out the forms and mail them back with a check. Figure on about one or two weeks for the application to wind its way through the administrative area of the brokerage firm and for them to get back to you with an account number. Once this is done, you can call up and trade stocks.

Jesse Livermore - Trading Rules

2006-07-04T18:13:00.000+01:00

Human nature is no different today than it was back in the 1920s and 1930s when Jesse Livermore was a major force on Wall Street. Investors have the same hopes and fears today that they had seventy or eighty years ago. Mr. Livermore saw repeatedly that the opinions of many of his colleagues were frequently wrong, as the market went on its own merry way in a direction contrary to what they had expected.

Few investors have made and lost fortunes to equal those of the legendary Jesse Livermore, a notorious stock market speculator during the first half of the 20th century. He often remarked," Markets are never wrong; opinions are."

In these periods of gyrating markets where it is difficult to know the markets trend, Livermore remarked over 80 years ago:

"Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after an investor has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."

Reminiscences of a Stock Operator published in 1923 offers timeless wisdom for all investors and traders.
I leave you with some of those tips. Hope they can do for you the same they did for me.

Never act on tips.
Use a system and don't deviate from it.
Never buy a stock because it has had a big decline from its previous high.
If a stock doesn't act right don't touch it; because, being unable to tell precisely what is wrong, you cannot tell which way it is going. No diagnosis, no prognosis. No prognosis, no profit.
Don't blame the market for your losses.
Never add to a losing position. A losing position means you were wrong.
Stocks are never too high for you to begin buying or too low to begin selling. But after the initial transaction, don't make a second unless the first shows you a profit.
Always sell what shows you a loss and keep what shows you a profit.
Don't argue with the tape. Do not seek to lure the profit back. Quit while the quitting is good--and cheap.
There is only one side to the stock market; and it is not the bull side or the bear side but the right side.
The speculator's chief enemies are always boredom from within.
A man must believe in himself and his judgment if he expects to make a living at this game.
Bulls and bears make money, but pigs get slaughtered.
Use money management at all times.
Establish your trading plan before the markets open.
Detailed your plan for each trade.
Establish entry and exit points and understand risk reward rations.
Accept small losses as part of the game if you want to win.
Trade markets from the short side.
Stand aside from a position, knowing you have taken a position.
Develop a trading plan for each potential situation you may face.
Do not look at quotes during the day.
Do not concentrate on break-even levels when you are losing.
Don't liquidate a winner to keep a loser.
Develop and maintain an exit plan. Follow this plan with rigid discipline.
Sustain your patience. Big movements take time to develop.
Don't be overly curious about the rationale behind a move. The key to wealth in trading is simplicity.

The Click or The Trade-o-Maniacs

2006-07-03T17:04:00.000+01:00

When the stock market takes a nosedive—as it did recently—so can mental health.

That’s because when you’ve got a panic button, there’s a lot of pressure in knowing when to hit it. And thanks to the advent of online investing, an estimated 4 million people in the United States now have such a button: their mouse.
Financial experts advise most investors to take a cool, calm approach to the market, ignoring short-term ups and downs. But how can you stay calm when you’re watching your stocks fluctuate from minute to minute and the power to buy or sell is only a few clicks away?

Wall Street in Your Face

“People see how their money is melting away, and their emotions run higher,” says Dr. Alexander Elder, a New York psychiatrist and professional trader. “It’s a huge casino for many people.”
Trading from your desktop, via the Internet, is cheaper and more convenient than going through a broker or financial planner. But often the price of that convenience is stress. You’re turning yourself into a trader, a profession notorious for high anxiety.
“It changes it from an investment mentality to a gambling mentality,” says Dr. John Schott, author of Mind Over Money and a leader in the field of investment psychology. People who might otherwise be sensible long-term investors, he says, get caught up in the thrill of life in the fast lane.
To illustrate his point, Schott uses the example of home prices: “What if every day in the newspaper the price of your home was listed? It may go up or down, but it’s meaningless because most people intend to stay in their homes for a long time. It really doesn’t matter what the price is from day to day.”

Think Before You Click

Industry watchers have noted that online investors buy and sell more frequently than investors who use brokers. “People trade just for excitement,” Elder says. “That’s much more conducive to a hyperactive, nonthinking mode of trading.”
On top of the stress of bringing the Wall Street trading floor to your desk, there’s also the loneliness factor. Brokers and financial planners aren’t exactly therapists, but they can serve a similar purpose, especially with the market seesawing like it is now.
But if you’re on your own, says psychologist and financial planner Herbert Froehlich, “You don’t have anybody to comfort you. When the market is declining, you know you’re better off talking with a broker. You get a sense of his or her experience [during other market downturns]. You can’t get that online. You can’t get humanity online.”

Bearing Up

And if things don’t go well, a broker can also ease the pain by becoming your scapegoat.
“Psychologically, we need someone to blame,” Froehlich says. “Online traders have only themselves to blame.”
Sounding very much like a therapist, Schott says it’s important for investors to realize that fear is a normal reaction to market wackiness.
“In a bull market, greed is the most important emotion,” he notes, “and in a bear market, fear is the most important emotion. People who are given to trading quickly will overreact” to their fear.
Psychiatrist-trader Alexander Elder advises Web heads to preserve their mental health by keeping written trading files, plotting out a specific plan of action and making charts of their investments. At the very least, he says, take a deep breath and count to 10 before you click that mouse in a panic.

Adapted from an unknown authour

The New York Stock Exchange

2006-07-03T11:13:00.000+01:00

The New York Stock Exchange (NYSE) is the oldest stock exchange in the United States.

http://www.nyse.com

The NYSE uses an agency auction market system which is designed to allow the public to meet the public as much as possible. The majority of volume (approx 88%) occurs with no intervention from the dealer.
Specialists (specs) make markets in stocks and work on the NYSE. The responsibility of a spec is to make a fair and orderly market in the issues assigned to them. They must yield to public orders which means they may not trade for their own account when there are public bids and offers. The spec has an affirmative obligation to eliminate imbalances of supply and demand when they occur. The exchange has strict guidelines for trading depth and continuity that must be observed.
Specs are subject to fines and censures if they fail to perform this function. NYSE specs have large capital requirements and are overseen by Market Surveillance at the NYSE. Specs are required to make a continuous market.

Most academic literature shows NYSE stocks trade better (in tighter ranges, less volatility, less difference in price between trades) when compared with the OTC market (NASDAQ). On the NYSE 93% of trades occur at no change or 1/8 of a point difference. It is counterintuitive that
one spec could make a better market than many market makers (see the article about the NASDAQ). However, the spec operates under an entirely different system. The NYSE system requires exposure of public orders to the auction, the opportunity for price improvement, and to trade ahead of the dealer. The system on the NYSE is very different than NASDAQ and has been shown to create a better market for the stocks listed there.
This is why 90% of US stocks that are eligible for NYSE listing have listed.

A specialist will maintain a narrow spread. Since the NYSE does not post bid/ask information, you need to check out the 1-minute tick to figure out the spread. In other words, you'll need access to a professional's data feed before you can really see the size of the spread. But the structure of the market strongly encourages narrow spreads, so investors shouldn't be overly concerned about this.

There are 1366 NYSE members (i.e., seats). Approximately 450 are specialists working for 38 specialists firms. As of 11/93 there were 2283 common and 597 preferred stocks listed on the NYSE. Each individual spec handles approximately 6 issues. The very big stocks will have a spec devoted solely to them.

Every listed stock has one firm assigned to it on the floor. Most stocks are also listed on regional exchanges in LA, SF, Chi., Phil., and Bos. All NYSE trading (approx 80% of total volume) will occur at that post on the floor of the specialist assigned to it. To become a NYSE spec the normal route is to go to work for a specialist firm as a clerk and eventually to become a broker.

The New York Stock Exchange imposes fairly stringent restrictions on the companies that wish to list their shares on the exchange. Some of the guides used by the NYSE for an original listing of a domestic company are national interest in the company and a minimum of 1.1 million shares
publicly held among not fewer than 2,000 round-lot stockholders. The publicly held common shares should have a minimum aggregate market value of $18 million. The company should have net income in the latest year of over $2.5 million before federal income tax and $2 million in each of the preceding two years. The NYSE also requires that domestic listed companies meet certain criteria with respect to outside directors, audit committee composition, voting rights and related party transactions. A company also pays significant initial and annual fees to be listed on
the NYSE. Initial fees are $36,800 plus a charge per million shares issued. Annual fees are also based on the number of shares issued, subject to a minimum of $16,170 and a maximum of $500,000. For example, a company that issues 4 million shares of common stock would pay over $81,000 to be listed and over $16,000 annually to remain listed.

Adapted from http://invest-faq.com/

The Nasdaq

2006-07-03T10:57:00.000+01:00

NASDAQ is an abbreviation for the National Association of Securities Dealers Automated Quotation system.

http://www.nasdaq.com

The NASDAQ market is an interdealer market represented by over 600 securities dealers trading more than 15,000 different issues. These dealers are called market makers (MMs). Unlike the New York Stock Exchange (NYSE), the NASDAQ market does not operate as an auction market. Instead, market makers are expected to compete against each other to post the best quotes (best bid/ask prices).

A NASDAQ level II quote shows all the bid offers, ask offers, size of each offer (size of the market), and the market makers making the offers. The size of the market is simply the number of shares the market maker is prepared to fill at that price. Since about 1985 the average person has had access to level II quotes by way of the Small Order Execution System (SOES) of the NASDAQ.

SOES was implemented by NASDAQ in 1985. Following the 1987 market crash, all market makers were required to use SOES. This system is intended to help the small investor (hence the name) have his or her transactions executed without allowing market makers to take advantage of said small investor. You may see mention of "SOES Bandits" which is slang for people who day-trade stocks on the NASDAQ using the SOES. A SOES bandit tries to scalp profits on the spreads. Visit www.attain.com for more on that topic.

A firm can become a market maker (MM) on NASDAQ by applying. The requirements are relatively small, including certain capital requirements, electronic interfaces, and a willingness to make a two-sided market. You must be there every day. If you don't post continuous bids and offers every day you can be penalized and not allowed to make a market for a month. The best way to become a MM is to go to work for a firm that is a MM. MMs are regulated by the NASD which is overseen by the SEC.

The brokerage firm can handle customer orders either as a broker or as a dealer/principal. When the brokerage acts as a broker, it simply arranges the trade between buyer and seller, and charges a commission for its services. When the brokerage acts as a dealer/principal, it's
either buying or selling from its own account (to or from the customer), or acting as a market maker. The customer is charged either a mark-up or a mark-down, depending on whether they are buying or selling. The brokerage can never charge both a mark-up (or mark-down) and a
commission. Whether acting as a broker or as a dealer/principal, the brokerage is required to disclose its role in the transaction. However dealers/principals are not necessarily required to disclose the amount of the mark-up or mark-down, although most do this automatically on the
confirmation as a matter of policy. Despite its role in the transaction, the firm must be able to display that it made every effort to obtain the best posted price. Whenever there is a question about the execution price of a trade, it is usually best to ask the firm to produce a Time and Sales report, which will allow the customer to compare all execution prices with their own.

In the OTC public almost always meets dealer which means it is nearly impossible to buy on the bid or sell on the ask. The dealers can buy on the bid even though the public is bidding. Despite the requirement of making a market, in the case of MM's there is no one firm who has to take the responsibility if trading is not fair or orderly. During the crash of 1987 the NYSE performed much better than NASDAQ. This was in spite of the fact that some stocks have 30+ MMs. Many OTC firms simply stopped making markets or answering phones until the dust settled.

Academic research has shown that an auction market such as the NYSE results in better trades (in tighter ranges, less volatility, less difference in price between trades). When you compare the multiple market makers on the NASDAQ with the few specialists on the NYSE (see the NYSE article), this is a counterintuitive result. But it is true.

In 1996 the NASDAQ was investigated for various practices. It settled a suit brought against it by the SEC and agreed to change key aspects of how it does business.

Related topics include price improvement, bid and ask, order routing, and the 1996 settlement between the SEC and the NASDAQ. Please see the articles elsewhere in this FAQ about those topics.

Adapted from http://invest-faq.com/

The American Stock Exchange

2006-07-01T00:23:00.000+01:00

The American Stock Exchange (AMEX) lists over 700 companies and is the world's second largest auction-marketplace.
Like the NYSE (the largest auction marketplace), the AMEX uses an agency auction market system which is designed to allow the public to meet the public as much as possible.
Regular listing requirements for the AMEX include pre-tax income of $750,000 in the latest fiscal year or 2 of most recent 3 years, a market value of public float of at least $3 million, a minimum price of $3, and a minimum stockholder's equity of $4 million.

You can visit the AMEX home page at http://www.amex.com

Glossary - Payment Mechanism Terms

2006-06-29T23:22:00.000+01:00

Automated Clearinghouse (ACH)
A computer-based clearing and settlement operation, often operated by a Federal Reserve Bank, established for the exchange of electronic transactions among participating depository institutions. Such electronic transactions can be substituted for paper checks used to make recurring payments such as payroll or preauthorized insurance premiums. The U.S. Treasury uses the ACH extensively to pay certain obligations of the government.

Automated Teller Machines (ATMs)
Computer-controlled terminals located on the premises of financial institutions or elsewhere, through which customers may make deposits, withdrawals, or other transactions as they would through a bank teller. Other terms sometimes used to describe such terminals are customer-bank communications terminal (CBCT) and remote service unit (RSU). Groups of banks sometimes share ATM networks located throughout a region of the country that may include portions of several states.

Automatic Transfer Service (ATS) Account
A depositor's savings account from which funds may be transferred automatically to the same depositor's checking account to cover a check written or to maintain a minimum balance.

Bankwire
An electronic communications network owned by an association of banks and used to transfer messages between subscribing banks. Bankwire also offers a clearing service called Cashwire that includes a settlement facility.

Check Clearing
The movement of checks from the banks or other depository institutions where they are deposited back to those on which they are written, and funds movement in the opposite direction. This process results in credits to accounts at the institutions of deposit and corresponding debits to the accounts at the paying institutions. The Federal Reserve participates in check clearing through its nationwide facilities, though many checks are cleared by private sector arrangement.

Clearinghouse
An institution where mutual claims are settled between accounts of member depository institutions. Clearinghouses among banks have traditionally been organized for check-clearing purposes, but more recently have cleared other types of settlements, including electronic fund transfers.

Clearinghouse Interbank Payments System (CHIPS)
An automated clearing system used primarily for international payments. This system is owned and operated by the New York Clearinghouse banks. It engages Fedwire for settlement.

Debit Card
A card that resembles a credit card but which debits a transaction account (checking account) with the transfers occuring contemporaneously with the customer's purchases. A debit card may be machine readable, allowing for the activation of an automated teller machine or other automated payments equipment.

Electronic Fund Transfer Systems (EFTS)
A variety of systems and technologies for transferring funds (money) electronically rather than by check. Includes Fedwire, Bankwire, automated clearinghouses (ACHs), and other automated systems.

Fedwire
The Federal Reserve funds transfer system. Fedwire is used for transferring reserve account balances of depository institutions and government securities. Fedwire is also used for the settlement of other clearing systems, such as CHIPS.

Federal Reserve Float
Checkbook money that for a period of time appears on the books of both the payor and payee due to the lag in the collection process. Federal Reserve float often arises during the Federal Reserve's check collection process. In order to promote an efficient payments mechanism with certainty as to the date funds become available, the Federal Reserve has employed the policy of crediting the reserve accounts of depository institutions depositing checks according to an availability schedule before the Federal Reserve is able to obtain payment from others.

FRCS-80
This is the communications network of the Federal Reserve. It interconnects Federal Reserve Bank offices, the Board of Governors, depository institutions, and the Treasury. It is used for Fedwire transfers, transfers of U.S. securities, as well as for transfer of Federal Reserve administrative, supervisory, and monetary policy information.

Payments Mechanism
Systems designed for the movement of funds, payments, and money between financial institutions throughout the nation. The Federal Reserve plays a major role in the nation's payments mechanism through distribution of currency and coin, check processing, wire transfer of funds, and the operation of automated clearinghouses that transfer funds electronically among depository institutions. Federal Reserve payments mechanism services are made available to both member banks and nonmember depository institutions on the basis of uniform pricing schedules.

Regional Check Processing Center (RCPC)
A Federal Reserve check processing operation that clears checks drawn on depository institutions located within a specified area. RCPC's expedite collection and settlement of checks within the area on an overnight basis.

Swift
A message writing system that connects worldwide participating banks. It is used primarily for the purpose of communicating payment information. Frequently, the SWIFT message is only part of an international payment process which might also employ a system such as CHIPS to fully implement the transaction.

Glossary - Securities Credit Terms

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Broker-Dealer
Any person, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others.

Brokers' Loans
Money borrowed by brokers from banks for uses such as financing specialists' inventories of stock, financing the underwriting of new issues of corporate and municipal securities, and financing customer margin accounts.

Day Trade
Also know as a "daylight trade." The purchase and sale or the short sale and cover of the same security in a margin account on the same day.

Exempted Security
A security that is exempted from most provisions of the securities laws, including the margin rules. Such securities include U.S. government and agency securities, and some municipal securities designated by the SEC.

Federal Margin Call
A broker's demand upon a customer for cash, or securities needed to satisfy the required Regulation T down payment for a purchase or short sale of securities. The word federal is usually omitted from the phone call. Generally, the broker will call up and say " margin call ". Anyone receiving a margin call has to transfer additional funds into his account to meet the Regulation T minimum margin requirements.

Futures
Contracts that require delivery of a commodity of specified quality and quantity, at a specified price, on a specified future date. Commodity futures are traded on a commodity exchange and are used for both speculation and hedging.

Margin
With regard to securities, this term refers to a fractional amount of full value, or the equity outlay (downpayment) required for an investment in securities purchased on credit. Different exchanges, and investment instruments have different margin requirements. Additionally, brokerage firms may use the minimum exchange level for their clients margin accounts or they may have higher levels. Refer to each specific exchange, broker, and investment vehicle, for the specific margin requirements.

Margin Stock
Any stock listed on a national securities exchange, any over-the-counter security approved by the SEC for trading in the national market system, or appearing on the Board's list of over-the-counter margin stock and most mutual funds. There are certain requirements a stock must meet before it can be margined. The most important of which is that the price must be greater than $5.00

National Association Of Securities Dealers (NASD)
A self-regulatory organization with jurisdiction over certain broker-dealers. The NASD requires member brokers to register, and conducts examinations for compliance with net capital requirements and other regulations. It also conducts market surveillance of the over-the-counter (OTC) securities market. NASDAQ is a subsidiary of the NASD which facilitates the trading of approximately 5,000 of the most active OTC issues through an electronically connected network.

Over-The-Counter (OTC) Stocks
Stocks not traded on a national securities exchange.

OTC Margin Bond
A debt security not traded on the national securities exchange which meets certain Regulation T requirrements as to size of original offering, available information, and status of interest payments.

Purpose Credit
Credit used for the purpose of buying, carrying, or trading in securities.

Securities And Exchange Commission (SEC)
An independent agency of the U.S. government consisting of five members appointed by the President that administers comprehensive legislation governing the securities industry.

Self-Regulatory Organizations (SRO)
Nongovernment organizations that have statutory responsibility to regulate their own members such as the NYSE, AMEX, and NASD.

Street Name
Securities held in the name of brokers, or banks, or their nominees, instead of in the customer's name.

The Investment FAQ

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Stocks, Forex, Commodities, Mortgage, Loans and Options, we'll try to cover all these and other related subjects.
From the young saver to the heavy professional trader, just keep focused and look where we can lead you.