Tuesday, March 29, 2011

Exchange-Traded Funds

A 60-Second Guide


The "It" equity -- the exchange-traded mutual fund -- is no spring chicken. It's been around since the early 1990s. But ETFs are still turning heads. It's no wonder: The combination of index investing with the handiness --- and lower costs -- of individual stock ownership is irresistible. Are ETFs a good match for your portfolio? Read on...

0:60 Consult your investing dictionary.

What exactly is an exchange-traded fund (ETF)? "Exchange-traded" refers to shares that trade all day long on

Thursday, March 24, 2011

Online Stock Trading - Who Else Wants to Finally Get Profits?


Online stock trading, Blue-Chip style.

Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term.

Historically, investing in stocks has generated a return, over time, of between 11 and 15 percent annually depending how aggressive you are. Stocks outperform other investments since they incur more risk. Stock investors are at the bottom of the corporate "food chain." First, companies have to pay their employees and suppliers. Then they pay their bondholders. After this come the preferred shareholders. Companies have an obligation to pay all these stakeholders first, and if there is money leftover it is paid to the stockholders through dividends or retained earnings. Sometimes there is a lot of money left over for stockholders, and in

Wednesday, March 23, 2011

Choosing the Right Stock Trading to Invest

Stocks, also known as trading shares, are one of the options available for those who want to invest their money. Other options include bonds, real estate, and bank deposits. These present ownership rights to a company, allowing investors to part-own firms they would never buy outright. It is a well-known fact that in the long run, stock prices always rise, mirroring population and GDP growth. Since new companies emerge while older ones wither away, choosing the right stocks to invest in can be tricky. Investing in shares of stocks requires a consistent, deliberate approach. This removes a lot of the emotionally driven investing decisions that typically lead to poor choices and lower returns.

Share trading online has now become the norm for individual investors and traders for the past decade. A lot of brokers now are offering online services with unique trading platforms. There are two basic methods of stock trading: on the exchange floor and electronically. Trading on the floor is the image most people know of