Investing for Beginners

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    10 Ways to Invest Money

    From simple savings accounts to complex derivatives, the financial markets offer several investment choices to fit your financial objectives and tolerance for risk and volatility. However, take the time to understand and research these investment options to avoid making costly ...

    10-Year Bond vs. 20-Year Bond

    When buying bonds, longer maturities almost always give you a higher yield. However, during periods of low interest rates, buying a long-maturity bond can be risky. For a given change in market interest rates, the price on longer bonds will fluctuate more than the price on ...

    What Is a 1:50 Stock Split?

    In the investing world, companies do not give up total control of their stock shares after the initial offering. If they have no better use for free cash, they can buy back shares. This lowers the number of shares on the market (the "float") and tends to raise the ...

    30 Day Rule of Buying & Selling Stock

    The 30-day rule in the stock market -- commonly referred to as the "wash sale" rule" -- affects the taxable gains and losses on stocks you sell. The purpose of the rule is to prevent you from selling stock for a tax loss and buying it right back because you still ...

    What Is a 3-for-2 Stock Split?

    A stock split allows a company to increase the number of shares in stockholders' hands without reducing or diluting the value of anyone's stake in the company. In a 3-for-2 stock split, the company's stockholders wind up owning three shares of stock for every two shares they ...

    5 Questions to Ask When Investing

    Asking questions is part of the due diligence process of investing. You can choose from several asset classes, such as stocks and bonds, and hundreds of securities in each class. These securities will have different risk-reward characteristics. By asking the right questions, you ...

    5 Reason Stocks Drop and Rise So Much

    The stock market works as a double auction market. Buyers offer a price they are willing to pay for a particular stock, while sellers offer stock for sale at a price they are willing to take. When the bid price and the ask price match, a stock trade is made. While many factors ...

    529 vs. Stocks for Kids

    The average cost for undergraduate tuition, room and board at public institutions ballooned 37 percent between 2000 and 2010, according to the National Center for Education Statistics. Prior planning can help take some of the stress out of paying for your child or grandchild's ...

    529 vs. Traditional Investing

    The average price tag for a year at a public college or university, including tuition, room and board, was $12,804 for the 2009-2010 academic year, according to the National Center for Education Statistics. College costs at public universities rose 37 percent in the first decade ...

    How to Account for Selling Stock

    Selling stock when you want to cash in on an investment or sell before the market dips in value is a key part of a timely investing strategy. However, there's much more to selling stock than pocketing the money you receive and walking away. You'll need to account for the money ...

    Accrued Interest Vs. Compound Interest in Savings Bonds

    U.S. savings bonds provide competitive yields and allow investors to compound those earnings for many years. The accrual and compounding features of savings bonds determine when you earn interest and when you earn more interest. The interest rate policy of savings bonds makes it ...

    How to Add a Name to Stocks Owned

    A stock certificate is a legal document that serves as proof of ownership of a company's stock. Ownership can be shared with a friend, spouse or other designee by adding the name of the recipient to the stock certificate. This is a simple and straightforward process, but there ...

    How to Add a Trailing Stop After Purchasing a Stock

    A trailing stop order is a more flexible type of stop order, which becomes a market order at a specified stop price. You would set a trailing sell-stop order after purchasing a stock to maximize profits and minimize losses. The trailing stop price or trigger price adjusts by ...

    The Advantages of Bonds Over Common Stock

    Companies issue bonds and shares in common stock to raise capital. Bonds are loans from bondholders to public- and private-sector bond issuers. In return, bondholders receive fixed periodic interest payments and get the principal back on maturity. You can trade stocks and bonds ...

    The Advantages of a Call Option

    When you purchase a call option you get a contract that entitles you to buy the underlying commodity or financial instrument, such as a share of stock, at a guaranteed price called the strike price. You pay a fee called a premium for the call option, and you can exercise your ...

    Advantages and Disadvantages of Bonds

    Governments and businesses issue bonds to raise funds from investors. Bonds pay regular interest, and bond investors get the principal back on maturity. Credit-rating agencies rate bonds based on creditworthiness. Low-rated bonds must pay higher interest rates to compensate ...

    Advantages and Disadvantages of Common Stocks

    Common stocks represent part ownership of publicly traded companies. Stocks trade on regulated and over-the-counter stock exchanges worldwide. Common stocks are a key component of retirement portfolios, along with bonds and short-term money market instruments. You can buy stocks ...

    The Advantages & Disadvantages of General Obligation Bonds

    Municipal bonds can be classified as either revenue bonds or general obligation bonds. The difference relates to the sources of money used to pay interest and principal on the bonds. Revenue bonds receive money from a specific project, and general obligation bonds draw from a ...

    Advantages & Disadvantages of Ginnie Mae Bond Funds

    The Government National Mortgage Association, also known as Ginnie Mae or GNMA, is a federally owned corporation. Ginnie Mae insures investment pools that contain mortgage-backed securities to ensure investors receive interest payments in the event that borrowers default on the ...

    Advantages & Disadvantages of Money Market Accounts

    A money market account, or money market deposit account, is a government-insured bank account that pays relatively high interest rates and provides cash withdrawal privileges. This type of account offers both savings and checking tools at higher yields than regular savings and ...

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