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Stocks


Corporate Income Statement
Asset = Income - Liability

Revenue (total sales)
- Cost of goods sold
Ads
= Gross profit
- (Selling ) General and administrative expenses (G & A === SG&A)
Marketing
Sales (comission, cost of taking people out to dinners)
Salaries
= Operating profit (return)
ROA (return on asset) = return / total assets
- debt interest
= pre-tax income
- tax 
= net income (earning) goes to pocket of owners ====
Equity
Return on equity  = netincome/ equity



I'm 18 years old and want to learn how to invest my money. How do I get started?
 Averaging over a lot of stocks gives the same expected return for much lower risk. link
no fund owner is markedly better than any other, so don't accept anything more than the lowest available fee.
 put some small amount of your money like 10% in very safe assets that won't crash, like government bonds.
These facts lead to a clear course of action: passive investment (no buying or selling) in a market ETF (a fund which diversifies as much as possible) with minimal fees.

Mutual funds vs Stocks
Mutual funds are a collection of stocks bundled into a group. There might be 100 stocks in a mutual fund, for example.

Parameters
  • market cap (how much is the company worth[shares * price]),
  • annual/quarterly reports: (SEC 10-Ks and 10-Qs)
  • balance/income sheets
  • Start with online financial sites to get a quick idea of the business and key financial ratios.
  • Analyst reports
  • Check: Customers + Competitors + Suppliers

find stocks that are undervalued and buy them and to find stocks that are overvalued and sell them.
Stock prices go up/down based on how well people think the company is doing.
You are basically making a bet about how well you think a company is going to perform in the future.

Warren Buffett, one of the best investors today, said that if you cannot hold a stock for 10 years, you should not even consider holding it for 10 seconds.

The key to successful investing is to stick with your strategy over long period of time. So once you set your target, and the stock hits the target price, you buy, and continue buying as the stock goes lower.

Buy
"Online discount brokers" charge less than $10 commission per trade, regardless the size of the trade. The best brokers also offer no fee dividend reinvestment, good customer service, and various research tools for customers.

Notify the broker:
company's "symbol" (a 1-5-letter code),
the price you're willing to pay per share,
the number of shares to buy,
and the length of time for which your offer will be valid (e.g. Single day vs. Good till Cancelled).

"Full service broker" similar to a discount broker as discussed above, except that they charge considerably higher fees, and offer investment advice and more research tools. Because full service brokers are paid mostly by commissions, it is in their best interest to encourage you to trade as frequently as possible, even though it may not be in your best interest.



Dow 30: dow up by 5 points. the weighted stock of 30 companies
smp 500 index


Study for at least a year before investment, always diversify your money

do things that make you happy. then go to stock market, play with it like slot machine , if you win you win if you lose you lose. If you like to eat apple pie eat apple pie. if you don't do it and win a million dollars you are not happy. do what makes you happy then think about other stuff. http://www.youtube.com/watch?v=jlNYziQeE_U

Do not buy options, do not be a day trader, do not buy or sell puts or calls. do not buy partnerships

I like high dividend, high volume stocks with positive earnings. I like stocks which are in a business I understand. Do lots of research before you buy.













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