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So you have heard that the market
is making new highs everyday (or at least seems that way), and
you would like to participate in the rally. You wonder, how
do I do that? Well, this page is intended to provide some basic
information on how to start investing in the market.
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What is a Margin? Margin allows investors
to buy securities, by borrowing money from a broker. The margin
is the difference between the market value of a stock at the
time of its purchase and the funds available in the account. |
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What is an Option? A stock option
is a contract which allows its holder the right, but not the
obligation, to buy or sell shares of the underlying stock at
a specified price on or before a given date. This right is granted
by the seller of the option. The thing to remember is if one
buys an option, he/she is not obligated to exercise the option. |
Don't invest in anything you don't
understand. There were horror stories of people who had lost
fortunes by being short puts during the 87 crash. I imagine
that they had no idea of the risks they were taking. Also, all
the complaints about penny stocks, whether fraudulent or not,
are partially a result of not understanding the risks and mechanisms. |
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How to Choose a Stock Broker
This page is intended to provide a sound foundation on which
to build a good working relationship with your stockbroker.
You should choose your stockbroker with the same care that you
choose other professionals. Your stockbroker should be someone
who will listen attentively as you explain your financial needs
and who can be trusted to carry out your wishes.
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This page is designed to provide
you, the beginning investor, with general information about
penny stocks and the markets in which they are traded. Because
there is so much fraud involving penny stocks, this booklet
serves mostly to warn potential investors against becoming
involved with penny stocks. However, you should be aware that
many small, deserving, completely legitimate companies issue
stock that trades for pennies a share in the over-the-counter
market. The trick is to be able to spot the potential fraud.
We hope this page will help you do just that. |
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There is so much fraud involving
stocks, this booklet serves mostly to warn potential investors
against becoming involved with stocks. . The trick is to be
able to spot the potential fraud. We hope this page will help
you do just that. |
This page is intended to provide
a sound foundation on which to choose a good bank for your deposits.
You should choose your bank with the same care that you choose
other professionals. |
