Financial Literacy: Buying and Selling Investments
Chapter 12: Buying and Selling Investments
Sources of Investing Information
-Magazines
- Forbes, Business Week, Fortune - News Magazines: Time, Newsweek, US News & World Report
-Newspapers
-Wall Street Journal and Barron’s
-Investor Newsletters -Standard & Poor’s Stock Reports, Moody Investors Service, and Value Line Investment Survey
-Company Reports -Annual Report
-Prospectus
-Internet - Bloomberg, CNN Money, Kiplinger, Morningstar, Reuters
Key Figures
-Current Stock Price- amount investors are willing to pay for a share of ownership in the company
-Number of Employees - Increases in the number of employees can reflect growth or downsizing
-Market Cap - The total value of a company in the stock market
-Revenue - amount of money received from business activities
-Net Income or Profit - amount of money earned after deducting all the business’s expenses
-Profit Margin- profit shown as a percentage
-P/E Ratio - price-earning ratio compares the selling price of common stock to the annual profits per share
-Current Ratio - measure of a company’s ability to pay its current debts from current assets
Stockbrokers
Full Service Brokers - qualified stock broker who provides advice about what securities to buy and sell.
Discount Brokers - qualified stock broker who buys and sells securities at a reduced rate but only provides advice for a fee sometimes.
Online Brokers - brokers that charge low fees with the least amount of service; no investment advice or management of assets and only sometimes research reports.
Financial Planners - an adviser who helps people make investment decisions to stated goals
How are Financial Markets Designed?
Primary Market - where IPOs or new issues of securities are sold usually directly from the company
Secondary Market - where previously issued securities are sold
Securities Exchange - are places for brokers to buy and sell securities for their clients
Over the Counter Market - is a network of
Sources of Investing Information
-Magazines
- Forbes, Business Week, Fortune - News Magazines: Time, Newsweek, US News & World Report
-Newspapers
-Wall Street Journal and Barron’s
-Investor Newsletters -Standard & Poor’s Stock Reports, Moody Investors Service, and Value Line Investment Survey
-Company Reports -Annual Report
-Prospectus
-Internet - Bloomberg, CNN Money, Kiplinger, Morningstar, Reuters
Key Figures
-Current Stock Price- amount investors are willing to pay for a share of ownership in the company
-Number of Employees - Increases in the number of employees can reflect growth or downsizing
-Market Cap - The total value of a company in the stock market
-Revenue - amount of money received from business activities
-Net Income or Profit - amount of money earned after deducting all the business’s expenses
-Profit Margin- profit shown as a percentage
-P/E Ratio - price-earning ratio compares the selling price of common stock to the annual profits per share
-Current Ratio - measure of a company’s ability to pay its current debts from current assets
Stockbrokers
Full Service Brokers - qualified stock broker who provides advice about what securities to buy and sell.
Discount Brokers - qualified stock broker who buys and sells securities at a reduced rate but only provides advice for a fee sometimes.
Online Brokers - brokers that charge low fees with the least amount of service; no investment advice or management of assets and only sometimes research reports.
Financial Planners - an adviser who helps people make investment decisions to stated goals
How are Financial Markets Designed?
Primary Market - where IPOs or new issues of securities are sold usually directly from the company
Secondary Market - where previously issued securities are sold
Securities Exchange - are places for brokers to buy and sell securities for their clients
Over the Counter Market - is a network of