10 Minute Guide to Investing in Stocks

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Front Matter

Table of Contents

Index

About the Author

10 Minute Guide to Investing in Stocks

E. Saenz

Publisher: Alpha Books

First Edition September 01, 2001

ISBN: 0-02-863610-4, 216 pages

New investors can fall into some dangerous traps. If you are new to the stock market, if you need a refresher

course in investing basics, or if you are an employee of a corporation that manages its own profit sharing stock

plan, this easy-to-use reference guide on everything from research to mutual funds can help you. It provides a

basic education on stocks, investing, and the way the market works. >

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I l@ve RuBoard

10 Minute Guide to Investing in Stocks

Introduction

Extras

Acknowledgments

Lesson 1. Confronting Your Fear of Stocks

What You Need to Know Before Beginning

Technical-ese

Insufficient Financial Knowledge

Stocks Are Only for Millionaires

A Stock Market Crash

Is Investing Like Gambling?

It Will Take Too Much Time

Lesson 2. Why You Should Invest in Stocks

Stocks Rock!

Stocks vs. Bonds

Stocks vs. Cash

Stocks vs. Mutual Funds

Lesson 3. How Much Do You Have to Invest?

Determining Your Overall Financial Picture

Sufficient Savings

Getting Rid of Debt

Determining Your Expenses

Paper Investing

Lesson 4. What Is a Stock?

Stock Talk

What's a Company Worth?

Kinds of Stock

The Two Main Issues of Stock

Lesson 5. The Five Types of Stock

Stock Characteristics

Lesson 6. Stock Derivatives

What Are Derivatives?

Subscription Rights

Warrants

Options

Lesson 7. The Markets

Trading Places

The New York Stock Exchange

The American Stock Exchange

Regional Exchanges

Over the Counter

International Exchanges

The Big Bang

Other Markets

Lesson 8. Brokers and Brokerage Houses

Types of Stockbrokers

Role of Stockbrokers

Securities and Exchange Commission

Full Service Stockbrokers

Discount Stockbrokers

E-Brokers

Educate Yourself

Lesson 9. Opening a Brokerage Account

Getting Started

Cash Account

Margin Account

Lesson 10. How Much Stock to Buy and How to Buy It

Determining How Much Stock to Buy

Round Lots

Odd Lots

Determining How to Buy Your Stock

Market Orders

Limit Orders

Stop Orders

Lesson 11. How to Pick Stocks

Determining Your Objectives

Determining Your Acceptable Level of Risk

Inflationary Risk

Political/Governmental Risk

Market Risk

Lesson 12. Evaluating Stocks

The Dreaded Math Part Made Easy

The Price/Earnings Ratio

Lesson 13. Choosing a Strategy

Investment Strategies

Recommendations

Research

Buy and Hold

Dollar Cost Averaging

Constant Dollar Averaging

Lesson 14. How to Check Your Investments

Congratulations!

Reevaluating Your Portfolio

Checking Your Stock's Performance

Reading the Stock Tables

Miscellaneous Information

Lesson 15. The Ticker Tape, Stock Indices, and Other Media

The Ticker Tape

The Indices

The Dow Jones Average

The NASDAQ National Market System Composite Index

The Standard & Poor's 500

The AMEX Market Value Index

The NYSE Composite Index

The Russell Indices

The Wilshire 5000 Equity Index

Other Media

A. Glossary

Glossary

B. Resources

Credit Reporting Agencies

Financial Media

Brokers

Online Research

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10 Minute Guide to Investing in Stocks

Copyright Information

Copyright ? 2000 by Pearson Education, Inc.

All rights reserved. No part of this book shall be reproduced, stored in a retrieval system,

or transmitted by any means, electronic, mechanical, photocopying, recording, or

otherwise, without written permission from the publisher. No patent liability is assumed

with respect to the use of the information contained herein. Although every precaution

has been taken in the preparation of this book, the publisher and author assume no

responsibility for errors or omissions. Neither is any liability assumed for damages

resulting from the use of information contained herein. For information, address Alpha

Books 201 West 103rd Street, Indianapolis, IN 46290.

Library of Congress Catalog Card Number: Available upon request.

02 01 00 8 7 6 5 4 3 2 1

Interpretation of the printing code: The rightmost number of the first series of numbers is

the year of the book's printing; the rightmost number of the second series of numbers is

the number of the book's printing. For example, a printing code of 00-1 shows that the

first printing occurred in 2000.

Printed in the United States of America

Warning and Disclaimer

Note: This publication contains the opinions and ideas of its author. It is intended to

provide helpful and informative material on the subject matter covered. It is sold with the

understanding that the author and publisher are not engaged in rendering professional

services in the book. If the reader requires personal assistance or advice, a competent

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