Investing through a DRIP has long been a way for individual investors to gradually build up a position in a public company without paying high brokerage fees or agonizing over market-timing, but are they still a sound idea?
Every investor faces a whole host of challenges in managing their portfolio. Chief among them: deciding not only when to buy, but also when to sell. This is critical when you’re taking profits and when you’re cutting losses.
Financial statements are supposed to be straightforward summaries of what actually took place in a corporation, understandable by all. Right? Not quite. The balance sheet, income statement and a summary of cash flow are only summaries of the numbers. Much more detail is found (or hidden) in the footnotes to these statements.
Last Monday, Apple Inc. (AAPL) announced that its chairman and CEO, Steve Jobs, would be taking another leave of absence from the company after receiving a liver transplant only a year and a half ago. The exact nature of Jobs’ illness is unknown, but it can be assumed to be serious, and we all wish him well in recovering his health. But what about holding on to Apple Inc. in our stock portfolios?
Technological advances that make high frequency trading possible have changed how stocks are traded so sweepingly that, if you participate in a pension fund or even a 401(k), how your own money is managed now (or in the future) may be affected by these changes. This interactive infographic offers a look at the basics of high frequency trading.
Market capitalization is important because it gives us an idea of how large a company is and, in turn, allows us to compare it to other companies of similar size. (Hence the popular large-cap, mid-cap and small-cap categorizations, which we’ll define below.)
While it’s difficult for the average investor to buy shares in Facebook right now, there are rumors that the company will go public in 2012. This will allow you to invest in your favorite time-waster the same way you invest in Coca Cola (KO) or Microsoft (MSFT). However, the question remains: Will Facebook be a smart investment for you? Consider the following factors before buying.