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Understanding markets

Global markets and electronic trading have created a world where stock prices never sleep. Somewhere in the world, stocks are always being traded.

CNBC guide to money and markets
CNBC with Jeff Wuorio.
New York : Wiley, 2002.
From CNBC, the recognized leader in financial market news, comes the most complete and accessible guide to your money and how it relates to the financial markets. CNBC Guide to Money and Markets shows you how to choose and use a variety of investment vehicles to build a powerful and diverse portfolio. With a glossary of terms and set of frequently asked questions, this indispensable investing primer demystifies complex concepts and terminology so you can make smarter investment choices. CNBC Guide to Money and Markets explores: Identifying goals and your risk level in developing an investment program Various strategies for selecting winning stocks Choosing the right bonds and cost-effective mutual funds How futures and options work When to use stable investments such as CDs, Treasury bills, and money market accounts Utilizing traditional and Roth IRAs, 401(k)s, and 403(b)s Filled with professional advice, proven investment tools, and colorful graphs and charts, CNBC Guide to Money and Markets is perfect to use in conjunction with CNBC financial programs or as a stand-alone investing guide. Pick up CNBC Guide to Money and Markets and start building a financial plan that will carry you to the peak of personal financial success.
     
The 100 best mutual funds you can buy 2002
Gordon K. Williamson.
Holbrook, Mass. : Adams Media, c2002.
Following an introduction to mutual funds, a California investment counselor who directs a professional education program for financial consultants rates his current top 100 funds by investment type. Appendices further detail decision parameters and trends. Annotation copyrighted by Book News, Inc., Portland, OR
     
Money talk : from alphabet stock to the naked sale--the words and phrases that control your money
Lorraine Spurge.
New York : Hyperion, c2001.
A dictionary of financial terms for the same "small" investors who might have seen Spurge discussing personal finance on CNN and CNBC. The definitions, examples, and illustrations are written in plain language with the aim of demystifying Wall Street's "two-dollar terminology." "With a little common sense and the right translation," Spurge writes, "all of us can master our financial lives." Annotation copyrighted by Book News Inc., Portland, OR
     

Buying a share of stock in a corporation makes you a shareholder or investor in that company. For investors, a general rule is that when a company has higher profits, then investors make money. This is done through dividend payments. However, timing is everything when trying to make money in the stock market. Knowing when to buy and when to sell is crucial. 

Bulls make money, bears make money, pigs get slaughtered.

James Cramer,
TheStreet.com

Market trends sometimes last a long time, even years. They tend to fall quickly and rise slowly. A rising period is referred to as a bull market. A bear market is a falling market. It is wise to learn the performances of the major stock exchanges around the globe before you invest your money.

There are unofficially four tiers of stocks in the market.

  • Blue chip stocks are the elite, older generation stocks--companies that have always performed strongly.
  • Next, are secondary issues. These companies have achieved a little less investor confidence than the blue chips. 
  • Thirdly, are growth stocks. Generally growth stocks are relatively young companies with grown potential, but no assurance of success.
  • Finally, there are penny stocks. Such stocks are considered the long-shots in providing a large dividend. They virtually have no value other than their speculative potential.

Remember no investment is ever risk free. Losses are always possible. Research and planning need to always be thought of in advance of any investment.

Article by: St. Louis Public Library staff