The Fundamental Of Investing
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What Everyone Should Know To Take Control Of Their Finances And Retirement Planning... By Anthony Jeanty Of: Knowledge Financial Group - Knowledgefinancial.com
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Investing is a business as an investor you must treat investment as a business In any investment you expect a ROI return on investment as long as your investment is increasing value..
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Investing is a business as an investor you must treat investment as a business In any investment you expect a ROI return on investment as long as your investment is increasing value..
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Invest in securities: investments that represent evidence of debt or ownership, or legal right to acquire or sell an ownership interest..
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Investing in properties: Investment in real property, or in tangible personal property. Real Estate is one of the best investment of all time, Real Estate is outperformed all other kind of investment..
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Short-term investments: This kind of investments mature within one or less and certainly as investor or speculator you expect to pay more to the governments for capital gains because it's short term..
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Long-term Investments: This kind of investments mature longer than a year and you expect to pay less taxes for capital gains. Investments last over a year cost investors less in taxes..
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As an investor you feel free to invest domestic companies or foreign companies via ADR=American Depository Receip
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Investing in properties: Investment in real property, or in tangible personal property. Real Estate is one of the best investment of all time, Real Estate is outperformed all other kind of investment..
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Short-term investments: This kind of investments mature within one or less and certainly as investor or speculator you expect to pay more to the governments for capital gains because it's short term..
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Long-term Investments: This kind of investments mature longer than a year and you expect to pay less taxes for capital gains. Investments last over a year cost investors less in taxes..
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As an investor you feel free to invest domestic companies or foreign companies via ADR=American Depository Receip
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Domestic investments: Debt, equity, and derivatives securities of United States based companies
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Foreign investments: Debt, security and derivative secities of foreign based companies
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Common Stock: Equity investment that represents ownership in a corporation; each share represents a fractional ownership in a company..
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Preferred Stock: Equity investment in a corporation who has a stated dividend rate, payment of which is given preference over common stocks..
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Bonds, Fixed Securities: Investments vehicles that offer a fixed period of return..
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Mutual Funds: Companies that raise money from the sales of shares and invest in professionally managed diversified portfolio of securities using PMM= professional money manager..
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Foreign investments: Debt, security and derivative secities of foreign based companies
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Common Stock: Equity investment that represents ownership in a corporation; each share represents a fractional ownership in a company..
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Preferred Stock: Equity investment in a corporation who has a stated dividend rate, payment of which is given preference over common stocks..
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Bonds, Fixed Securities: Investments vehicles that offer a fixed period of return..
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Mutual Funds: Companies that raise money from the sales of shares and invest in professionally managed diversified portfolio of securities using PMM= professional money manager..
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Options: They are securities that give the investors an opportunity to sell or buy another security as a specified price over given period of time. Options are not guaranteed any return and could even lose the entire amount invested. There are basically three common types of options: Puts - Calls - And Warrants..
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Futures: They are legally binding obligations stipulating that the sellers of such contracts will make delivery ..
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The stock market has taken investors on a roller coaster ride over the years. Become a successful investors takes time and effort.. Anthony Jeanty From Knowledge Financial Group - Knowledgefinancial.com
But no matter what news you heard about the financial stock market; don't wait for the right time to invest, mmney experts don't believe there is one..
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Risks
As investor you must consider risk; business risk, financial risk, interest rate risk, liquidity risk, market risk, event risk
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Diversified your portfolio between different classes of investments. Spreading your hard earned money among different types of investments is less risky than putting all, or much of your precious eggs in one single basket. Mutual Funds do exactly that investing in different types of securities. My advice to you is not to concentrate too much in one industry. Anthony Jeanty From Knowledge Financial Group - Knowledgefinancial.com
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My advice to you as a professional investor is: You must and should monitor your investments. It's not bad good idea to buy, hold and forget.. It's an excellent decision to review your portfolio regularly, review your strategies, and your risk tolerance. By Anthony Jeanty From Knowledge Financial Group - Knowledgefinancial.com
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'' Types of Income: They are basically classified into one of three categories: Active Income consists of everything from wages and salaries, bonuses, tips etc. Active Income is made up of income earned on the job...
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Portfolio Income: Income generated from various forms of investments holdings. This consists saving accounts, CD's, Money market, stocks, bonds, mutual funds, futures and contracts, options etc.
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Passive Income: Income derived from real property. Income producing properties or other tax-advantage investments.
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Ordinary Income; whether earned, passive or portfolio income these are taxed at one of five rates in the United States: 15, 28, 31, 36, or 39.6 -
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Securities Market: Securities market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply.
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Security: A financial instrument that represents: an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value.
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Security: Securities are typically divided into debt securities and equities. A debt security is a type of security that represents money that is borrowed that must be repaid, with terms that define the amount borrowed, interest rate and maturity/renewal date. Debt securities include government and corporate bonds, certificates of deposit (CDs), preferred stock and collateralized securities (such as CDOs and CMOs).
Equities represent ownership interest held by shareholders in a corporation, such as a stock. Unlike holders of debt securities who generally receive only interest and the repayment of the principal, holders of equity securities are able to profit from capital gains.
In the United States, the U.S. Securities and Exchange Commission (SEC) and other self-regulatory organizations (such as the Financial Industry Regulatory Authority) regulate the public offer and sale of securities.
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Money Market: As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling ...
If Financial Knowledge - Financial Literacy is necessary to become rich and wealthy than knowledgefinancial.com has all the resources
Money Market'
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements
Money Market'
The money market is used by a wide array of participants, from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a safe place to park money in the short term. The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and short maturities, but there are risks in the market that any investor needs to be aware of including the risk of default on securities such as commercial paper.
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Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals.
Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output.
Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.
If financial education is a key ingredient for financial success than knowledgefinancial.com
Capital Markets' Capital markets typically involve issuing instruments such as stocks and bonds for the medium-term and long-term. In this respect, capital markets are distinct from money markets, which refer to markets for financial instruments with maturities not exceeding one year.
Capital markets have numerous participants including individual investors, institutional investors such as pension funds and mutual funds, municipalities and governments, companies and organizations and banks and financial institutions.
Suppliers of capital generally want the maximum possible return at the lowest possible risk, while users of capital want to raise capital at the lowest possible cost.
The size of a nation’s capital markets is directly proportional to the size of its economy. The United States, the world’s largest economy, has the biggest and deepest capital markets.
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Primary Market' A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors.
Primary Market' The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold.
Once the initial sale is complete, further trading is said to conduct on the secondary market, which is where the bulk of exchange trading occurs each day
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Knowledge Financial Group trained, mentored, coached, guided entrepreneurs, professionals, and business people achieve the maximum in the financial world..
Secondary Market' A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets.
Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying company/entity directly
Secondary Market' A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves.
In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like supply and demand determine the price of the security.
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Bull Market' A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.
Bull Market' Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It's difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets.
The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.
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Bear Market' A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary.
Bear Market' A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do.
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Securities Act Of 1933
Securities Act Of 1933' A federal piece of legislation enacted as a result of the market crash of 1929. The legislation had two main goals..
(1) to ensure more transparency in financial statements so investors can make informed decisions about investments,
and (2) to establish laws against misrepresentation and fraudulent activities in the securities markets.
Securities Act Of 1933'
The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed.
Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system.
In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged.
The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission.
Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement.
At Knowledge Financial Group - Knowledgefinancial.com you can find inspiration, motivation. Here you can stay informed and increase your knowledge in numerous subjects..
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Securities Exchange Act Of 1934'
The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.
Securities Exchange Act Of 1934'
All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements.
From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws.
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Investment Company Act of 1940
The Investment Company Act of 1940 is an act of Congress. It was passed as a United States Public Law) on August 22, 1940,
The Investment Company Act of 1940 is the legislation that was passed by Congress to protect the investing public's interests in investment companies. The act dictates the rules of investment company registration and regulation. Knowledge Financial Group - Knowledgefinancial.com
An investment company is a corporation or a trust through which individuals invest in diversified, professionally managed portfolios of securities by pooling their funds with those of other investors. Rather than purchasing combinations of individual stocks and bonds for a portfolio, an investor can purchase securities indirectly through a package product like a mutual fund.
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Primary Market' The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold.
Once the initial sale is complete, further trading is said to conduct on the secondary market, which is where the bulk of exchange trading occurs each day
========
Knowledge Financial Group trained, mentored, coached, guided entrepreneurs, professionals, and business people achieve the maximum in the financial world..
Secondary Market' A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets.
Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying company/entity directly
Secondary Market' A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves.
In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like supply and demand determine the price of the security.
=========
Bull Market' A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.
Bull Market' Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It's difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets.
The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.
========
Bear Market' A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary.
Bear Market' A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do.
======
Securities Act Of 1933
Securities Act Of 1933' A federal piece of legislation enacted as a result of the market crash of 1929. The legislation had two main goals..
(1) to ensure more transparency in financial statements so investors can make informed decisions about investments,
and (2) to establish laws against misrepresentation and fraudulent activities in the securities markets.
Securities Act Of 1933'
The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed.
Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system.
In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged.
The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission.
Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement.
At Knowledge Financial Group - Knowledgefinancial.com you can find inspiration, motivation. Here you can stay informed and increase your knowledge in numerous subjects..
======
Securities Exchange Act Of 1934'
The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.
Securities Exchange Act Of 1934'
All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements.
From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws.
=============
Investment Company Act of 1940
The Investment Company Act of 1940 is an act of Congress. It was passed as a United States Public Law) on August 22, 1940,
The Investment Company Act of 1940 is the legislation that was passed by Congress to protect the investing public's interests in investment companies. The act dictates the rules of investment company registration and regulation. Knowledge Financial Group - Knowledgefinancial.com
An investment company is a corporation or a trust through which individuals invest in diversified, professionally managed portfolios of securities by pooling their funds with those of other investors. Rather than purchasing combinations of individual stocks and bonds for a portfolio, an investor can purchase securities indirectly through a package product like a mutual fund.
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