Category Archives: Stocks 101

What are Penny Stocks?

The basic definition of penny stocks are any stocks which are sold under $1 to $5. The reasons for this variation in the maximum value is that the term penny stocks may be applied to any number of low price … Continue reading

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What is a Mutual Fund? Pros and Cons of Investing in Mutual Funds

Mutual funds are one of the easy ways to invest. By pooling together the money of thousands of investors, a professional fund manager can invest this amount in different stocks, bonds and other securities. For the investor, particularly the small … Continue reading

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What are Commodities? Types and Trading a Commodity

Introduction to Commodities Commodities are a type of security just as are stocks and bonds. However, the commodity differs from these other securities in its nature. Whereas stocks are buying a part ownership in a company and bonds are lending … Continue reading

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Moving Averages of Stock Prices

A moving average is a way of having a quick glimpse at the trend in stock prices. It shows uptrends or downtrends based on the average stock price over a period of time. This gives the investor an idea of … Continue reading

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Stocks Prices in the Bull and Bear Market

The price of a company’s stock at its initial public offering (IPO) is determined by various factors, secured by the participation of certain firms and regulated by the SEC (Security and Exchange Commission). After this, however, stock prices can go … Continue reading

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The Stock Market – Physical vs Virtual, Primary vs Secondary

The stock market or equity market is a place, either real or virtual, where stocks, bonds and commodities are traded. Here traders have a platform to buy and sell these securities on behalf of clients and ultimately reduces the cost … Continue reading

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What is a Bond and What are the Different Types of Bonds?

Bonds are often seen as the boring choice for investing. It is a type of security, like stock, but has different characteristics that make it an attractive option for certain investors. After all when investing, the preferred instruments depends on … Continue reading

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Common Stocks and Preferred Stocks

Common stocks and preferred stocks are similar in that the stockholders have part ownership in the company. Both types of stocks can be traded but due to difference in the value of each stock to the investor, the prices may … Continue reading

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What are Stocks?

Stocks are simply part ownership in a company where the stockholder has a claim on the company’s assets and earnings. The extent of the ownership depends on the amount of stock one holds. This means that as a stockholder or … Continue reading

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