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Author Archives: Thomas DeGrace
Cyclical Stocks
Cyclical Stocks are stocks that do well when the economy is in a recovery and do bad when in a recession. These cycles can greatly effect the company’s sales and thus also effect the stock price during these cyclical cycles. Some example of sectors that can be cyclical are: automobiles equipment … Continue reading
Dividend
Dividend is a portion of the net profits paid directly to the stockholders paid at a fixed amount. Understand How Dividend Works Certain sectors and companies can pay more dividends than others. A slower growth company can also pay dividends in order to attract more investors. s.
Diversification
Diversification reducing risk by investing in many securities and investments. There are many different ways one can diversify. Understand How Diversification Works One such way would be buying 25% in bonds, 25% in mutual funds, 50% in stocks.
Dollar Cost Averaging
Dollar Cost Averaging is a method of investing in a particular equity by investing a fixed amount at regular intervals. Understand How Dollar Cost Averaging Works For example you could buy $1000 worth of MSFT every month. If you bought at 71, 83, 76, 90. Your dollar cost average is … Continue reading
Dow Jones Industrial Average
The Dow Jones Industrial Average is an average of 30 bull chip stocks hand picked by the Wall Street Journal editors. The dow is an indication of the well being of the overall market. Understand How DJIA Works The dow index has been the best performing indexes of all time
Float
Float is the number of shares available for trading by the public that are not held by insiders or large investors. Understand How Float Works A float can be increased a number of ways including issue of a secondary offering, issuing stock options, merger/acquisition or just issuing shares in general. … Continue reading
Index Fund
Index Fund is a fund that has a goal of matching the performance of an index such as the S&P 500 by buying the exact stocks that are in the index. Understand How Index Fund Works DIA, SPY and QQQ are DJIA, S&P 500 and NASDAQ ETF’s respectably.
Margin Call
Margin Calls is when the % of equity verses the debt falls below the broker’s min. standards, a margin call is issued to either come up with the money to bring the equity back to 50% or the shares of the portfolio will be sold to bring it up to … Continue reading
Overbought
Overbought is an equity (or market) that has gone up in a hurry, making the price too high in which the stock seems to be overvalued. Understand How Overbought Works Stocks that are overbought can have a high P/E or often trading higher than historical valuations.
Oversold
Oversold is an equity (or market) that has gone down to which its valuation seems to support buying of the stock. Understand How Oversold Works A stock can be oversold in a down market or if a company’s earnings stop growing. Oversold can mean either a company verses the valuation … Continue reading
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