Category: How To Invest In Stock – The Fundamentals
What Is A Mutual Fund And How Does It Work? A mutual fund is an investment company that allows a company to pool money from its investors and put it in various securities and financial instruments such as bonds, stocks, short-term debt, commodities, and stuff like these. All the holdings of any mutual fund are commonly referred to as a portfolio. Investors are allowed to buy shares in mutual funds and then each share the investor buys represents her portion of ownership in the fund and the revenue it generates. Mutual funds offer to ordinary people the opportunity for potential...
This one is another interesting and lucrative investment strategy. The so-called dividend aristocrats are a group of stocks from the S&P 500 index, that have increased the dividends they pay to shareholders for at least 25 consecutive years. Sounds good, isn’t it? Not only these companies have paid dividends for a quarter of a century, but also they increased them every single year. For the last 25 years, a portfolio containing all Dividend Aristocrats would have beaten the SP500 index big time. If you invested $1 000 in the index 25 years ago, you would have made around $7 990...
What Are Dow Jones Futures? Futures are derivative instruments, which means that their value derives from the value of another financial instrument. In this case, the value of a Dow Jones Future contract derives from the value of The Dow Jones Industrial Average Index. In very simple words, a future contract is a negotiated deal between a buyer and a seller, on an exact day in the future. The buyer agrees to buy the contracted amount at a predetermined price and the seller agrees to sell under these conditions. So a Dow Jones Future is a standardized contract in which...
If you can’t beat the market – follow it! This is a popular maxim, briefly describing that it’s not so easy to beat the market, but it’s really easy to follow it. As you may know, “The Market” here means the overall performance of all traded shares which is measured by stock indexes, like the Dow Jones Industrial Average Index and S&P500 index for example. So, to follow the market you simply need to invest your money in a market index. But how could you do that? How can we put some money in the Dow 30 and take advantage...
