Shares

Difference Between a Share and an Option


What is the difference between an option and a share?

For a newbie the stock market can be overwhelming. Apart from thousands of stocks to choose from there are also different type so financial instruments that you can look into. This is on top of all the research you have to do to be able to make money. And even with all that, in a highly unpredictable stock market, your still not guaranteed to have en early retirement. Apart form shares, options are another financial instrument you can buy.

Why Do You Buy Shares?


Why traders buy shares.

Obviously, for profit. But the real question is, why buy shares of a particular company? What do you look for? how can you know that its worth buying? The answer lies in the main two types of analysing stocks but there is no right or wrong answer. Each is used by different traders and implemented in different ways. And as every trader will tell you there is no one way to earn huge amounts of money in the market. Everyone has their own strategy that works for them.

Trading Goal: $100 a Day


Is it profitable to trade and $100 a day?

Setting your expectations is one of the most important part in trading. Having low expectations is not exactly a bad thing especially if your preparing yourself for the stock market. All traders know that money will be inevitably lost so its not always good to have high expectations unless they are realistic. The stock market is unpredictable, so as a beginner its always better to start small with a capital that is manageable.

Is 20% Annual Return Realistic?


Learn if a 20% annual return is realistic.

Consider the many factors that affect returns like timeframes, trading strategy, your particular portfolio, and social and economic upheavals. A stock may outperform 20 percent in a given year and maybe even 10 years, but this is the exception. Anybody can also get a one-year, one-time 20 percent return, but to expect the same rate year in and year out leans more toward the unrealistic. Learn more here.

Is 20% Annual Return Realistic?


Learn if a 20% annual return is realistic.

Market returns fluctuate like the tides. Consider the many factors that affect returns like timeframes, trading strategy, your particular portfolio, and social and economic upheavals. A stock may outperform 20 percent in a given year and maybe even 10 years, but this is the exception. Anybody can also get a one-year, one-time 20 percent return, but to expect the same rate year in and year out leans more toward the unrealistic.

What are Shares?


Everything about shares.

Shares are a unit of account in corporations, and include stocks and investments. Common and preferred are the two main types of shares. Shares are issued to raise money for the company. Along with shares, shareholders get other benefits from company like the rights to get dividends or the right to share in the capital. Shares vary, and so do entitlements that shareholders get.

What is Dividend Yield Play?


Learn about Dividend Yield Play.

Dividend yield play is a strategy suited for investors with a moderate risk profile. However, this requires monitoring your investment portfolio on a regular basis. The strategy aims to generate a regular stream of income by using the same capital investment of the company.

Calculating Share Price


Everything about share price calculation.

Share price is the price of one share of stock. Although it can appear like an arcane value, fluctuating with the market, share price is simply market capitalisation (company value) divided by number of shares issued by the company. A company with an IPO will usually have advisors to determine share price value for the company. Share price is determined before it is subjected to buyer and seller impact.

How is Share Price Calculated?


Learn how to calculate share price.

Share price is the price of one share of stock. Share price is calculated by dividing market capitalisation (company value) by the number of shares issued by the company. Share price is determined before it is subjected to buying and selling impact. Stock Price = (Dividends Paid (Div) + Expected Price (P1)) / (1 + Expected Return (R)).

Share Dilution


Learn about share dilution and how to calculate it.

You can invest in a business by buying stocks (equity) or bonds (debt). You become part owner of the business when you buy stock, and you loan money to a corporate or government entity when you buy bonds. Profits are paid to shareholders in the form of dividends, and earnings are calculated on a per-share basis. Sometimes a company will issue a lot of shares, resulting in shareholder earning less. This is when share value becomes diluted.

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