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	<title>Finance Resources &#187; Invest</title>
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		<title>Make Money With Penny Stocks &#8211; Here&#8217;s How!</title>
		<link>http://csigahaz.com/make-money-with-penny-stocks-heres-how/</link>
		<comments>http://csigahaz.com/make-money-with-penny-stocks-heres-how/#comments</comments>
		<pubDate>Fri, 08 Jan 2010 11:34:47 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[penny stocks]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[stocks]]></category>
		<category><![CDATA[stocks market]]></category>
		<category><![CDATA[stocks trading]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=157</guid>
		<description><![CDATA[If you see the term "Penny stocks" this is refering to stocks of companies that are priced at incredibly small prices. Many people are attracted to these shares since they require only a minor initial investment, however it's essential to note that you have the risk of the share value tumbling to nothing. Although there are some risks taken in these kinds of shares, there's also a sizeable prospective for sizeable gains.]]></description>
			<content:encoded><![CDATA[<p>If you see the term &#8220;Penny stocks&#8221; this is refering to stocks of companies that are priced at incredibly small prices. Many people are attracted to these shares since they require only a minor initial investment, however it&#8217;s essential to note that you have the risk of the share value tumbling to nothing. Although there are some risks taken in these kinds of shares, there&#8217;s also a sizeable prospective for sizeable gains. <span id="more-157"></span>Obviously, when you&#8217;re attempting to pick out a penny share to put money in in you are going to want to know some details about the organization. Just like purchasing other stocks, you are going to need to know the type of business they are operating and what business plans they have in the future.</p>
<p>It is unusual that the businesses that issue these types of shares have complex organizations &#8211; usually they are simple to understand and research. There&#8217;s a lot of of these kinds of stocks that are companies that deal with with resources &#8211; their value will appreciate and depreciate depending on the price of the commodity.</p>
<p>As you might guess, penny stocks are considered to be high risk investments. Unfortunately there&#8217;s always the risk that the company won&#8217;t survive even with proper research.</p>
<p>Keep in mind that the reporting regulations for penny stocks aren&#8217;t always as tight as stocks on bigger exchanges. One of the sorts of penny stocks is known as a &#8220;pink sheet&#8221; and has virtually no regulation when it comes to their reporting and accounting standards.</p>
<p>As you can imagine, due to this lack of standardization, this sort of stock is very vulnerable to manipulation and possibly even fraud. A common schemes is called referred to as a &#8220;pump and dump&#8221; &#8211; this refers to investors manipulating the price of stocks to increase and then dump all of their shares immediately and leave other people with big losses.</p>
<p>Don&#8217;t let the above scare you off these types of shares! Penny stocks always have risks but also have a big potential for a large gain. You can find lots of real, sound small businesses, and they have to get going somewhere. Tons of organizations that are classified as penny shares are headed to be successful in the oncoming future. If you&#8217;re someone who can choose one of these companies, your gains on your investment will be hefty.</p>
<p>When you are able to choose companies that have promise, your payoff are going to be massive. It&#8217;s possible that you drop money on several trades, yet the one winning pick will give you such a big return that any previous losing choices won&#8217;t be an issue.</p>
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		<title>Commodity Futures Tradings</title>
		<link>http://csigahaz.com/commodity-futures-tradings/</link>
		<comments>http://csigahaz.com/commodity-futures-tradings/#comments</comments>
		<pubDate>Wed, 14 Oct 2009 08:03:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>
		<category><![CDATA[Commodity Futures Tradings]]></category>
		<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Futures Trading Software]]></category>
		<category><![CDATA[Online Futures Tradings]]></category>

		<guid isPermaLink="false">http://csigahaz.com/commodity-futures-tradings/</guid>
		<description><![CDATA[Compared to cash contracts, which require payment against the physical delivery of goods immediately or after a specified period, a futures contract is a special type of agreement made strictly under the rules of a commodity exchange, which may or may not call for the actual delivery of goods and payment in cash on a [...]]]></description>
			<content:encoded><![CDATA[<p>Compared to cash contracts, which require payment against the physical delivery of goods immediately or after a specified period, a futures contract is a special type of agreement made strictly under the rules of a commodity exchange, which may or may not call for the actual delivery of goods and payment in cash on a future date.</p>
<p><span id="more-480"></span>
<p>According to Emery, a futures contract can be defined as a contract for the future delivery of some commodity without reference to specific lots, made under the rules of some commercial body, in a set form, by which the conditions as to unit of amount, the quality and time of delivery are stereotyped, and only the determination of the total amounts and the price is left open to the contracting parties.</p>
<p>Such contracts are meant exclusively for future settlement, though the exact date of the settlement is decided by reference to the wishes of the seller and the established rules of the commodity exchange. Such contracts do not specify the particular grade of a commodity, but impliedly refer to a basic grade called the contract grade, accepted as the common grade for all futures dealings. The details in respect to the amount, the time of settlement, the quality and so forth are mentioned in the rules and regulations, and are common to all such contracts. The contracting parties have to decide upon the price at which the contract is to be settled, sometime in one of the trading months specified by the exchange.</p>
<p>Futures contracts are made only in the ‘ring’ of the commodity exchanges, and not outside the exchanges. Only members of a commodity exchange can enter into such a deal. No outsider can become a party to a futures agreement. Such contracts can be made only in multiples of a fixed unit of trading. No such contracts can be made in fractions of these units.</p>
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		<title>Investing Rules Basic</title>
		<link>http://csigahaz.com/investing-rules-basic/</link>
		<comments>http://csigahaz.com/investing-rules-basic/#comments</comments>
		<pubDate>Wed, 07 Oct 2009 14:44:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>
		<category><![CDATA[basic investment]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[investing rules]]></category>
		<category><![CDATA[investment]]></category>

		<guid isPermaLink="false">http://csigahaz.com/investing-rules-basic/</guid>
		<description><![CDATA[Investing your money can be a great way to ensure your financial future. With the right investment choices, you can be sure to have money for emergencies, to put towards the education of your children, and to have available when the time comes for you to retire. There is a key word in the preceding [...]]]></description>
			<content:encoded><![CDATA[<p>Investing your money can be a great way to ensure your financial future. With the right investment choices, you can be sure to have money for emergencies, to put towards the education of your children, and to have available when the time comes for you to retire. There is a key word in the preceding phrase however- “right”. If you make the wrong investment choices, you may just end up where you started or worse, flat broke. Most people who invest wisely by making the right decisions with their money follow the same basic investment pattern, although they may define it by another name. It might be that you are the cynical type who chooses to believe that the basic rules could not possibly be as easy as they seem, in an area that seems so complex. It is true. However, that these rules have withstood the test of time.</p>
<p><span id="more-464"></span>
<p>First of all, make sure that the money you choose to invest is indeed earmarked for the purpose. As in any form of gambling, there is nothing to be gained and everything to be lost when it comes to investing. Do not put up money that you cannot afford to lose should the market take a downturn.</p>
<p>One rule that people seem to refuse to apply in any area of their lives, including the world of investing, is lean not on your own understanding. Most of the time, this is the result of people balking at entrusting another person with their money, believing that with a little understanding they can work the market themselves. This reasoning is fundamentally flawed. In the first place, most people will not be able to begin to unravel the complicated graphs, pie charts, and statistics by which the investment world relates its information. In order to understand what the numbers mean, you will need to have some basic training. There may come a time after you have had some experience in the market that you will be able to make sound decisions on your own, but the initial get-your-feet-wet phase is not the time to attempt it. Check the background of the advisor you choose, as there are a lot of brokers out there looking for a quick fleece. The best brokers will have years of experience, a variety of investment backgrounds, and will probably cost you much less than you might think.</p>
<p>Think long term. Unless you invest millions of dollars initially, it will take time for your investments to mature and begin to accumulate substantial gains. The best investments are proven over time, and thus it is best to place your funds in long term choices. The details of this are plain- it is best to forget about this money in terms of a cash fall back, at least for a number of years.</p>
<p>Diversification is an oft-flogged truism of the investment world. A good portfolio will include cash and cash equivalents (GICs, fixed annuities), growth investments (stocks), and growth and income investments such as mutual funds. Diversification ensures that you do not have all your eggs in one basket should any part of the market experience a downturn. Note that diversification means not only investing in several areas, but also making sure that no one area contains a disproportionate percentage of your funds.</p>
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		<title>Stock Exchanges For Beginners</title>
		<link>http://csigahaz.com/stock-exchanges-for-dummies/</link>
		<comments>http://csigahaz.com/stock-exchanges-for-dummies/#comments</comments>
		<pubDate>Wed, 02 Sep 2009 05:32:20 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[stock exchanges]]></category>
		<category><![CDATA[stock market]]></category>
		<category><![CDATA[stock trading]]></category>
		<category><![CDATA[stocks]]></category>
		<category><![CDATA[trading]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=128</guid>
		<description><![CDATA[NYSE, NASDAQ, Hang Seng and LSE are terms that you will keep hearing when you venture into the world of stock markets.]]></description>
			<content:encoded><![CDATA[<p>NYSE, NASDAQ, Hang Seng and LSE are some of the terms that you will be hearing quite a lot when you start your journey into the new world called stock markets.</p>
<p>While those terms seems weird for your ears, no need get bothered by them. They are acronyms for several stock exchanges from around the globe. Those stock exchanges are actually the place for any potential buyers to meet with the sellers and shares exchange hands. <span id="more-128"></span>The oldest stock exchange in the world is the NYSE or the New York Stock Exchange. Most companies in the US try to get themselves listed here. There is a certain financial and well as industrial criteria that the companies need to meet to get themselves to list here. This exchange is located on the Wall Street.</p>
<p>For trading at NYSE you need to be either a registered broker with NYSE or you need to have an arrangement with an entity who is a registered broker at NYSE.  It is not an easy thing to become a broker at NYSE and it costs a huge amount of money may be say a million dollars.</p>
<p>Similar to NYSE is American stock exchange which is again in the financial district of the country called New York. The American exchange has stocks for trading but also has options for trading. The AMEX can trade smaller companies than traded in NYSE and hence it is attractive to a lot of companies.</p>
<p>NASDAQ is the baby of them all though not in terms of the sheer size of companies listed on it and the full form of NASDAQ is National Association of Securities Dealers Automated Quotations. It began in 1971 and has almost any company you could think of listed there. Historically though it was known for technology companies like Microsoft and Intel and a lot of new technology start ups like to list here. This exchange does not have a physical building and it works a computer network where buyers and sellers meet through computer software and sell or buy stocks.</p>
<p>If you are international investor there are stock exchanges apart from America in other countries which you will keep hearing like the Bombay Stock Exchange, Hong Kong Stock Exchange or Hang Seng, Luxembourg stock Exchange or even the FTSE.</p>
<p>Make sure you enough about the exchange you want to trade on as that can help you decide the initial amounts for investing and the ease of investing.</p>
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		<title>Possible Mortgage Rate Scenarios For This Year</title>
		<link>http://csigahaz.com/possible-mortgage-rate-scenarios-for-this-year/</link>
		<comments>http://csigahaz.com/possible-mortgage-rate-scenarios-for-this-year/#comments</comments>
		<pubDate>Sun, 29 Mar 2009 03:11:45 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Invest]]></category>
		<category><![CDATA[mortgage]]></category>
		<category><![CDATA[mortgage rate]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=173</guid>
		<description><![CDATA[Everyone always wants to know if mortgage rates will rise or fall in the future. Especially in these uncertain times. Predictions are never totally accurate, but in the light of recent events we can make some good guesses.]]></description>
			<content:encoded><![CDATA[<p>Everyone always wants to know if mortgage rates will rise or fall in the future. Especially in these uncertain times. Predictions are never totally accurate, but in the light of recent events we can make some good guesses.</p>
<p>Lender ads are all over the place, boasting super low interest rates. The fact that only individuals with an above 700 credit score are entitled these low interest rates is frequently not brought up in the advertisement. Besides the high credit prerequisite, you will frequently need to make a big down payment to be eligible for a below five percent interest rate. If you don&#8217;t have a spotless credit report, like most of us, you will have to pay a bit more interest. <span id="more-173"></span>During the last few months, interest rates have consistently gone down. What everyone wants to know is when the market will hit the lowest point. Buying now may be a losing proposition, because interest rates may descend even further. But if you delay your decision, and interest rates abruptly rise, you also lose.</p>
<p>Mortgage applications are pouring in the last couple of months. Because of the sharp rise in applications, lenders can&#8217;t keep up. The average trend for mortgage interest rates is that it&#8217;s going down, but it&#8217;s not unrealistic to expect a bounce in interest rate pretty soon.</p>
<p>Many so called &#8216;experts&#8217; will regard the bounce as a bad development, but it&#8217;s only natural. You just have to wait it out and you&#8217;ll see the interest sink again. You know that the market has almost reached it&#8217;s bottom when the bounce is over. In this period, getting a fixed rate mortgage for a couple of years might be an excellent idea. When interest rates jump again, you will not regret your decision.</p>
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		<title>Making High Risk Investments</title>
		<link>http://csigahaz.com/making-high-risk-investments/</link>
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		<pubDate>Tue, 24 Mar 2009 02:56:11 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>
		<category><![CDATA[high risk investment]]></category>
		<category><![CDATA[imvest]]></category>
		<category><![CDATA[investment]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=163</guid>
		<description><![CDATA[High-risk can not be outlined technically or officially but it is claimed that pretty much all general investments are almost high risk.And due to this reason many folks believe in a method : higher the chance, higher the reward and then why don&#8217;t follow them.]]></description>
			<content:encoded><![CDATA[<p>High-risk can not be outlined technically or officially but it is claimed that pretty much all general investments are almost high risk.And due to this reason many folks believe in a method : higher the chance, higher the reward and then why don’t follow them. <span id="more-163"></span>Yes perhaps for you the thought of such strategy may be exciting or some how fearful. But it is a human tendency or you can say psychology to believe in such thing that more you take risks and more you will gain the profit. It is nothing more than a fable as you can also gain profit from the safe investment. But the people who want to earn more always follow such strategy, some of these people take high risk with experience and rules but rest of them play blind and in most of the cases they ruin their lives.</p>
<p>Well, it doesn’t mean that high-risk methods are not good or say a bad one.But there are some particular rules and time periods for playing such risks and it shouldn’t be your focal method. Even there are tons of strategies for getting high profit and there’s no need to take high risks .</p>
<p>The majority of the folk will do some mad things as an example, if the broker claims to the financier that if he could invest on a trade of $1000 then the money would be doubled and if he’d lose then there would be a loss of 500$ then the investor certainly would take the danger and invest his $1000 and most of the time he would lose them. So it does not matter for the folk if they lose $500 and suspect risk is 10 times more than that and then also folks won’t be scared to invest as the profit also becomes 10 times of it.</p>
<p>As specified by the present situation of the market, crude has played a terrific role as a high risk investment. The backers were thinking that the crude would reach up to $150 per barrel but in this recession it went down to near about $40 to $50.So that the speculators have to suffer a lot and plenty of stockholders lives devastated.If the market is going up and up then it does not mean that it’ll stay upwards for a long whilst, a single rumour can play a vital role to say no the market up to 5 hundred points just in a day. So if the investors don’t keep an eye on the market after doing high risk investment, the probabilities are bigger to fall down.</p>
<p>So any investment is a high risk investment but there are some certain high risk investments which attract many backers to gain their profit from the market but not all can gain the profit.So the high risk high profit investment plan can make you win or loose lots of money at the instance.So the financier shouldnt be dependent of high risk investment systems, these types of systems can destroy you and your family too.</p>
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		<title>Stocks, Bonds, and Mutual Funds Explained</title>
		<link>http://csigahaz.com/stocks-bonds-and-mutual-funds-explained/</link>
		<comments>http://csigahaz.com/stocks-bonds-and-mutual-funds-explained/#comments</comments>
		<pubDate>Mon, 09 Mar 2009 03:04:07 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=133</guid>
		<description><![CDATA[What do you know about investments?  Hardly anything?  Does financial news and any financial information in general just confuse you beyond a doubt?  Fortunately even the most financially illiterate can learn the basics of investments.]]></description>
			<content:encoded><![CDATA[<div style='font-style:italic;' class='byline'>by Carissah M. Swiss</div>
<p>What do you know about investments?  Hardly anything?  Does financial news and any financial information in general just confuse you beyond a doubt?  Fortunately even the most financially illiterate can learn the basics of investments.</p>
<p>When you are investing in stock, your goal is to buy stock at one price and sell it at a higher price on a later date for profit.  Shares of stock are issued by public companies on a stock exchange in order to raise money for their business.  These prices fluctuate on a daily basis.</p>
<p>When you own a share of stock, even just one, you own part of the company.  If you own stock, you are referred to as a shareholder.  You can vote in the company, but your vote is usually only good for choosing those on the board of directors who makes the big decisions, unless you own a large part of the company.</p>
<p>A stock is considered an equity security because you own part of the company.  A bond is considered a debt security because you lend the company money, you don&#8217;t own any of it.  You can buy bonds from the government, state, bank, or a corporation.  If you buy a bond for $1,000 that matures in 10 years with an effective interest rate of 5% paid annually, every year you will receive $50 until the 10 years are up at which time they will pay you back the $1,000.</p>
<p>You can hold bonds to maturity or you can buy and sell them.  Bonds bought from the government usually have little to no risk.  Corporate and municipal bonds have a rating that will tell you how risky they are.</p>
<p>Bonds are rated by letters.  For example, a AAA is the highest rating which means it has the lowest risk by those usually have the lowest return as well.  They are rated also as BBB, CCC, etc.  The lower they go, the riskier they are.</p>
<p>Mutual funds are a mix of stocks and/or bonds.  They work by pooling together a bunch of peoples money and a fund manager invests the money in several different investments for you.</p>
<p>Mutual funds are beneficial because you are able to diversify your money, meaning you reduce your risk by investing in many different securities or investments.  No-load mutual funds are popular because they don&#8217;t charge fees which puts more money back into your pocket.</p>
<div class='resource'>
<div style='font-style:italic;' class='about'>About the Author:</div>
<div class='links'>Do you want to <a href="http://learnaboutinvesting.info/should-i-invest-in-commodities/">learn to invest in commodities</a> or <a href="http://learnaboutinvesting.info/what-are-financial-derivatives/">invest in financial derivatives</a>? Learn about investing before you get started.</div>
</div>
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		<title>To Buy a Single Share of Stock &#8211; The Power</title>
		<link>http://csigahaz.com/to-buy-a-single-share-of-stock-the-power/</link>
		<comments>http://csigahaz.com/to-buy-a-single-share-of-stock-the-power/#comments</comments>
		<pubDate>Sun, 08 Mar 2009 04:39:08 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Invest]]></category>

		<guid isPermaLink="false">http://dianika.com/finance/?p=131</guid>
		<description><![CDATA[In business and finance, <a href="http://www.bchighway.com/financial-planning/investment-income.html"> a single one share (also referred to as equity share) of stock </a> means a share of ownership in a corporation (company). In the plural, stocks is often used as a synonym for shares especially in the United States, but it is less commonly used that way outside of North America.]]></description>
			<content:encoded><![CDATA[<div style='font-style:italic;' class='byline'>by Richard E. Drake</div>
<p>In business and finance, <a href="http://www.bchighway.com/financial-planning/investment-income.html"> a single one share (also referred to as equity share) of stock </a> means a share of ownership in a corporation (company). In the plural, stocks is often used as a synonym for shares especially in the United States, but it is less commonly used that way outside of North America.</p>
<p>In the United Kingdom, South Africa, and Australia, stock can also refer to completely different financial instruments such as government bonds or, less commonly, to all kinds of marketable securities.</p>
<p><b>Types of stock</b> Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called &#8220;convertible preferred shares&#8221; (or &#8220;convertible preference shares&#8221; in the UK)</p>
<p>Although there is a great deal of commonality between the stocks of different companies, each new equity issue can have legal clauses attached to it that make it dynamically different from the more general cases. Some shares of common stock may be issued without the typical voting rights being included, for instance, or some shares may have special rights unique to them and issued only to certain parties. Note that not all equity shares are the same.</p>
<p><b>Stock derivatives</b></p>
<p>For more details on this topic, see equity derivatives. A stock derivative is any financial instrument which has a value that is dependent on the price of the underlying stock. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm&#8217;s stock, e.g. single-stock futures.</p>
<p>Stock futures are contracts where the buyer is long, i.e., takes on the obligation to buy on the contract maturity date, and the seller is short, i.e., takes on the obligation to sell. Stock index futures are generally not delivered in the usual manner, but by cash settlement.</p>
<p>A stock option is a class of option. Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. The most popular method of valuing stock options is the Black Scholes model. Apart from call options granted to employees, most stock options are transferable.</p>
<p><b>History</b></p>
<p>During Roman times, the empire contracted out many of its services to private groups called publicani. Shares in publicani were called &#8220;socii&#8221; (for large cooperatives) and &#8220;particulae&#8221; which were analogous to today&#8217;s Over-The-Counter shares of small companies. Though the records available for this time are incomplete, Edward Chancellor states in his book Devil Take the Hindmost that there is some evidence that a speculation in these shares became increasingly widespread and that perhaps the first ever speculative bubble in &#8220;stocks&#8221; occurred.</p>
<p>The first company to issue shares of stock after the Middle Ages was the Dutch East India Company in 1606. The innovation of joint ownership made a great deal of Europe&#8217;s economic growth possible following the Middle Ages. The technique of pooling capital to finance the building of ships, for example, made the Netherlands a maritime superpower. Before adoption of the joint-stock corporation, an expensive venture such as the building of a merchant ship could be undertaken only by governments or by very wealthy individuals or families.</p>
<p>Economic historians find the Dutch stock market of the 1600s particularly interesting: there is clear documentation of the use of stock futures, stock options, short selling, the use of credit to purchase shares, a speculative bubble that crashed in 1695, and a change in fashion that unfolded and reverted in time with the market (in this case it was headdresses instead of hemlines). Dr. Edward Stringham also noted that the uses of practices such as short selling continued to occur during this time despite the government passing laws against it. This is unusual because it shows individual parties fulfilling contracts that were not legally enforceable and where the parties involved could incur a loss. Stringham argues that this shows that contracts can be created and enforced without state sanction or, in this case, in spite of laws to the contrary.</p>
<p><b>Shareholder</b></p>
<p>Stock certificate for ten shares of the Baltimore and Ohio Railroad Company.A shareholder (or stockholder) is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Companies listed at the stock market are expected to strive to enhance shareholder value.</p>
<p>Shareholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned) on matters such as elections to the board of directors, the right to share in distributions of the company&#8217;s income, the right to purchase new shares issued by the company, and the right to a company&#8217;s assets during a liquidation of the company. However, shareholder&#8217;s rights to a company&#8217;s assets are subordinate to the rights of the company&#8217;s creditors.</p>
<p>Shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.</p>
<p>Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other.</p>
<p>However, in a few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in California, USA, majority shareholders of closely held corporations have a duty to not destroy the value of the shares held by minority shareholders.</p>
<p>The largest shareholders (in terms of percentages of companies owned) are often mutual funds, and especially passively managed exchange-traded funds.</p>
<p><b>Application</b></p>
<p>The owners of a company may want additional capital to invest in new projects within the company. They may also simply wish to reduce their holding, freeing up capital for their own private use.</p>
<p>By selling shares they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends.</p>
<p>In the common case of a publicly traded corporation, where there may be thousands of shareholders, it is impractical to have all of them making the daily decisions required to run a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company.</p>
<p>In a typical case, each share constitutes one vote. Corporations may, however, issue different classes of shares, which may have different voting rights. Owning the majority of the shares allows other shareholders to be out-voted &#8211; effective control rests with the majority shareholder (or shareholders acting in concert). In this way the original owners of the company often still have control of the company.</p>
<p><b>Shareholder rights</b></p>
<p>Although ownership of 50% of shares does result in 50% ownership of a company, it does not give the shareholder the right to use a company&#8217;s building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This is important in areas such as insurance, which must be in the name of the company and not the main shareholder.</p>
<p>In most countries, including the United States, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes:</p>
<p>&#8230;it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders. Instead, there are both &#8220;communities of interest&#8221; and &#8220;conflicts of interest&#8221; between stockholders (principal) and management (agent). This conflict is referred to as the principal/agent problem. It would be naive to think that any management would forgo management compensation, and management entrenchment, just because some of these management privileges might be perceived as giving rise to a conflict of interest with OPMIs. Even though the board of directors runs the company, the shareholder has some impact on the company&#8217;s policy, as the shareholders elect the board of directors. Each shareholder typically has a percentage of votes equal to the percentage of shares he or she owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team. In practice, however, genuinely contested board elections are rare. Board candidates are usually nominated by insiders or by the board of the directors themselves, and a considerable amount of stock is held and voted by insiders.</p>
<p>Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans and other debts first, so that shareholders cannot receive any money unless and until creditors have been paid (most often the shareholders end up with nothing).</p>
<p><b>Means of financing</b></p>
<p>Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company&#8217;s working capital (day-to-day operational needs).</p>
<p><b>Trading</b></p>
<p>A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies. A company will usually list its shares by meeting and maintaining the listing requirements of a particular stock exchange. In the United States, through the inter-market quotation system, stocks listed on one exchange can also be bought or sold on several other exchanges, including relatively new so-called ECNs (Electronic Communication Networks like Archipelago or Instinet).</p>
<p>In the USA stocks used to be broadly grouped into NYSE-listed and NASDAQ-listed stocks. Until a few years ago there was a law that NYSE listed stocks were not allowed to be listed on the NASDAQ or vice versa.</p>
<p>Many large non-U.S companies choose to list on a U.S. exchange as well as an exchange in their home country in order to broaden their investor base. These companies have then to ship a certain number of shares to a bank in the US (a certain percentage of their principal) and put it in the safe of the bank. Then the bank where they deposited the shares can issue a certain number of so-called American Depositary Shares, short ADS (singular). If someone buys now a certain number of ADSs the bank where the shares are deposited issues an American Depository Receipt (ADR) for the buyer of the ADSs.</p>
<p>Likewise, many large U.S. companies list themselves at foreign exchanges to raise capital abroad.</p>
<p><b>Arbitrage trading</b></p>
<p>Although it makes sense for some companies to raise capital by offering stock on more than one exchange, a keen investor with access to information about such discrepancies could invest in expectation of their eventual convergence, known as an arbitrage trade. In today&#8217;s era of electronic trading, these discrepancies, if they exist, are both shorter-lived and more quickly acted upon. As such, arbitrage opportunities disappear quickly due to the efficient nature of the market.</p>
<p><b>Buying</b></p>
<p>There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they arrange the transfer of stock from a seller to a buyer. Most trades are actually done through brokers listed with a stock exchange, such as the New York Stock Exchange.</p>
<p>There are many different stock brokers from which to choose, such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker.</p>
<p>There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering in which the stock is purchased directly from the company, usually without the aid of brokers.</p>
<p>When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyer&#8217;s ownership, or by buying stock on margin. Buying stock on margin means buying stock with money borrowed against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stock (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50% of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house, using the car or house as collateral. Moreover, borrowing is not free; the broker usually charges 8-10% interest.</p>
<p><b>Selling</b></p>
<p>Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss.</p>
<p>As with buying a stock, there is a transaction fee for the broker&#8217;s efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on which type of brokerage, full service or discount, handles the transaction.</p>
<p>After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. Importantly, on selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.</p>
<p><b>Stock price fluctuations</b></p>
<p>Robert Shiller&#8217;s plot of the S&amp;P Composite Real Price Index, Earnings, Dividends, and Interest Rates, from Irrational Exuberance, 2d ed. In the preface to this edition, Shiller warns that &#8220;the stock market has not come down to historical levels: the price-earnings ratio as I define it in this book is still, at this writing, in the mid-20s, far higher than the historical average. People still place too much confidence in the markets and have too strong a belief that paying attention to the gyrations in their investments will someday make them rich, and so they do not make conservative preparations for possible bad outcomes.&#8221; Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert Shiller. The horizontal axis shows the real price-earnings ratio of the S&amp;P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows the geometric average real annual return on investing in the S&amp;P Composite Stock Price Index, reinvesting dividends, and selling twenty years later. Data from different twenty year periods is color-coded as shown in the key. See also ten-year returns. Shiller states that this plot &#8220;confirms that long-term investors-investors who commit their money to an investment for ten full years-did do well when prices were low relative to earnings at the beginning of the ten years. Long-term investors would be well advised, individually, to lower their exposure to the stock market when it is high, as it has been recently, and get into the market when it is low.&#8221;The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price. A recent study shows that customer satisfaction, as measured by the American Customer Satisfaction Index (ACSI), is significantly correlated to the stock market value. Stock price is also changed based on the forecast for the company and whether their profits are expected to increase or decrease.</p>
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<div style='font-style:italic;' class='about'>About the Author:</div>
<div class='links'>Investment ans single one stock share income strategies can all begin at <a href="http://www.bchighway.com/financial-planning/investment-income.html">http://www.bchighway.com/financial-planning/investment-income.html</a> Richard E. Drake. You got to love the drake.</div>
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		<title>Tic investing for Boomers.</title>
		<link>http://csigahaz.com/tic-investing-for-boomers/</link>
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		<pubDate>Tue, 03 Mar 2009 02:58:06 +0000</pubDate>
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				<category><![CDATA[Invest]]></category>

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		<description><![CDATA[Boomers Bank In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment. Investments are typically made via private equity real estate fund, a collective investment scheme, which pools capital from investors. These funds typically have ten-year life span consisting of a 2-3 year investment period during which properties are acquired and a holding period during which active asset management will be carried out and the properties will be sold.]]></description>
			<content:encoded><![CDATA[<div style='font-style:italic;' class='byline'>by John krol</div>
<p>Boomers Bank In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment. Investments are typically made via private equity real estate fund, a collective investment scheme, which pools capital from investors. These funds typically have ten-year life span consisting of a 2-3 year investment period during which properties are acquired and a holding period during which active asset management will be carried out and the properties will be sold.</p>
<p>History and evolution There is a long history of institutional investment in real estate both through direct ownership of property and through pooled investment funds. Initially institutional real estate investments were in core real estate, however, market conditions in the early 1990s led to the emergence of opportunistic funds which aimed to take advantage of falling property prices to acquire assets at significant discounts.[1] Private equity real estate emerged as an independent asset class in the beginning of the 21st century and has experienced huge growth in recent years. Strategies Private equity real estate funds generally follow core-plus, value added, or opportunistic strategies when making investments.</p>
<p>Core Plus: This is a moderate risk/moderate return strategy. The fund will generally invest in core properties, however some of these properties will require some form of enhancement or value-added element. Value Added: This is a medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way, and selling it at an opportune time for a gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.</p>
<p>Opportunistic: This is a high risk/high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical. Features Considerations for investing in private equity real estate funds relative to other forms of investment</p>
<p>Include: Substantial entry costs, with most funds requiring significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund. Investments in limited partnership interests (which is the dominant legal form of private equity real estate funds) are referred to as &#8220;illiquid&#8221; investment&#8217;s, which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money, as it is locked-up in long-term investments, which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made. If a private equity real estate firm can&#8217;t find suitable investment opportunities, it will not draw on an investor&#8217;s commitment. Given the risks associated with private equity real estate investments, an investor can lose all of its investment if the fund performs badly.</p>
<p>For the above-mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns, which are often above 20% for successful opportunistic funds. Investors in private equity real estate funds tend, therefore, to be institutional investors or high net worth individuals.</p>
<p>Size of Industry</p>
<p>The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors commit more capital to the asset class. In 2000 private equity real estate funds raised $12 billion in equity commitments from investors. By 2005 this had increased to $58 billion and in 2007 private equity real estate funds raised a total of $79 billion. Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26% was focused on Europe and 27% was targeting Asia and the rest of the world. By providing online real time services one on one client attention is always in mind.</p>
<p>There is a requirement for needed experience to switch to self-directed retirement plans; The investment Group can help investors chart a new &#8211; and potentially more profitable &#8211; course for their retirement years.</p>
<p>The investment Group that finds sound investments for self-directed Individual Retirement Arrangements (IRAs), KEOGHs, and SEPs fund inreal estate trust deeds note opportunities in limited partnerships.</p>
<p>The investment Group who is on top of changes in the fields of IRAs and investing &#8211; the principals were among the first to tackle the Roth IRA and the effects it had and is having on IRA -401k investing. Finding Investments for YouThe investment Group, Inc.&#8217;s primary service is finding and analyzing real estate-related investments for purchase by our clients.</p>
<p>We are investment real estate brokers and have been in business doing this since 2002. In 2002 we started working with IRA clients to assist them in finding appropriate investments in the real estate arena.</p>
<p>Investment Group&#8217;s find these assets by their network of investment real estate brokers throughout the U.S. (a network built through the Real Estate Cyber Space Society). They meet with these investment brokers online daily. These networking arrangements are with 11,000 brokers; take place in Cyber Space in real time. By being an active member of the Real Estate Cyber Space Society we can satisfy their clients&#8217; investment needs no matter how diverse.</p>
<p>The Groups clients give direction on what it is they would like to purchase; when the Group finds it they do a complete analysis of the investment and forward their due diligence to the respective clients. The client can review the information, take it to any other advisors they have and make a decision. If they wish to purchase the product the Group will go forward with the acquisition. If not, the Group finds another investment property for the clients review.</p>
<p>On occasion their clients have requested that they pay their fee&#8217;s on real estate acquisitions and then work as a buyer&#8217;s broker. As a free service to their IRA clients who use their investment services, the Group assist them in finding the correct custodian to service their account. Not all custodians are the same and it is vitally important to choose the right one the first time. In Today&#8217;s world, to make things happen now, we need to be in Real Time Mode for your Clients</p>
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<div style='font-style:italic;' class='about'>About the Author:</div>
<div class='links'>http://www.ira-401k-realestate.com/IYF-Video-Opt-In/</div>
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		<title>The Mighty Penny Stock</title>
		<link>http://csigahaz.com/the-mighty-penny-stock/</link>
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		<pubDate>Tue, 24 Feb 2009 03:40:13 +0000</pubDate>
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				<category><![CDATA[Invest]]></category>

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		<description><![CDATA[If you are thinking about getting into stock market investing for some extra cash, then penny stocks may be able to help you. While they are very risky, their profit potential is none the less amazing with a share being able to double or triple its value in a relatively short period of time. However because of this fact they are also risky and you can lose money just as fast]]></description>
			<content:encoded><![CDATA[<div style='font-style:italic;' class='byline'>by R. Branson</div>
<p>If you are thinking about getting into stock market investing for some extra cash, then penny stocks may be able to help you. While they are very risky, their profit potential is none the less amazing with a share being able to double or triple its value in a relatively short period of time. However because of this fact they are also risky and you can lose money just as fast</p>
<p>What are penny stocks?</p>
<p>Penny stocks are basically any stock that is worth less then $5 per share. However there is also a much more in-depth definition of it. You can find these on the major indexes as well as off of them but they all have the potential of quickly changing in value.</p>
<p>Why would anyone want to trade penny stocks?</p>
<p>If you had a hundred dollars to invest in the stock market, would you purchase one share of stock at $100 or purchase 100 shares of stock at $1 each? For the quickest return you would get the lower valued shares because they can double or triple their value in a few minutes time.</p>
<p>Does everyone trade them?</p>
<p>Just as pennies can increase in value quickly, they can also decrease in value. If you bought a hundred dollars in them at a dollar a piece and they suddenly fell to $0.25 per share, you would have lost 75% of your initial investment.</p>
<p>How to pick a good penny stock?</p>
<p>Choosing penny stocks is no easy task because there is limited information and since most of them are not on the major indexes, their information can quite easily be tampered with.</p>
<p>If they are so risky, why should I invest in them?</p>
<p>This depends, some people stand by investing in pennies while others will steer clear of them. If you are willing to accept the risks, then the profit potential can easily outweigh them.</p>
<p>Use your best judgment when choosing to invest in pennies and remember that you can only loose as much as you are willing to invest. Assuming that you keep emotions and gut instincts out of the equation, you will find that you ability to win more then you loose will greatly improve and when in doubt about a particular penny, stay away from it altogether.</p>
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<div style='font-style:italic;' class='about'>About the Author:</div>
<div class='links'>Before you decide to <a href='http://buypennystocksonline.com/'>buying penny stocks</a> you will need all the information you can get. Visit the authors website for the answer to the question <a href='http://buypennystocksonline.com/what-are-penny-stocks/'>what penny stocks are</a>?</div>
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