Buying corporation securities is somewhat like buying an automobile. The basic, one-celled form of business life is the individual entrepreneur emdash the store owner who merchandises goods, the artisan supplying services, the small manufacturer emdash whose capital needs are met out of savings or through a modest bank loan.
As long as firms [...]
How Preferred Are Preferred Stocks?
In an attempt to combine the most attractive features of bonds and common stock, financial experts created preferred stock. In most cases, it pays more than a bond, but is safer than common stock because of its preferred position.
Sizing Up Your Investments
Financial planners have a very difficult task: They must invest their clients’ money in diverse portfolios that (hopefully) will increase in value over time, not decline. A broker who has lost money for a client suffers from a damaged reputation and could even face suit if he’s [...]
Doing Business With Friends Makes Enemies
A promissory note is a promise by the borrower to repay the lender on a specific date or dates, usually with interest. These can be difficult to collect, and often the borrower is disinclined to pay the lender back within the given time frame—if at [...]
An investor interested in capital appreciation is not interested in dividends, but rather in seeing the market price of his stock increase. This represents nearly seven years’ worth of dividends from the $30 stock yielding a conventional 5 percent.
The common stockholder has a voice, frequently a loud one, in the affairs of his company. The shareholder is the prime beneficiary of stock splits, rights, and spin-offs, or distribution of assets. The advantages of common stock are several.
Recovering From The Crash
The road back to recovery from the great stock crash was long and hard. Principal steps toward recovery were the Securities Acts of 1933 and 1934, and the establishment of the Securities and Exchange Commission, a government agency, to administer them.
Devaluation And Exchange Control: Foreign Investment Risks
Investing in overseas markets can be tempting, especially if the exchange rate works well in your favor. The problem is that markets can change rapidly, and instead of making $100 off of your $75 investment, you might end up with less than $50. [...]
Insider Hint: Short-Term Notes
When considering where to invest a small sum, one largely overlooked avenue is the consumer finance company. These companies pay small dividends on investments of usually $100 or more, and they come up for renewal on a six-month or annual basis.
Brokerage houses are pretty much like offices everywhere, except for the presence of the fascinating paraphernalia of the market. The customers' room in the usual large brokerage house has a quotation board on one wall.