Stocks

One of the better-known places to invest is the stock market. This type of investing is not for the faint of heart and you need to understand some things about the market so that you can make the most of your money.

This section of tips can help you understand what the stock market is and how it works. You'll find explanations for some terms such as bear market, puts and calls, penny stocks, and derivatives.

Tips, Tricks, and Answers

The following articles are available for the 'Stocks' topic. Click the article''s title (shown in bold) to see the associated article.

   Donating Stocks
It would be nice if we could all get to the point where we have too much money and in a manner of speaking, that's what can happen with stocks. If you want to avoid paying taxes on your stock returns, consider donating your stocks and that way you can sidestep hefty taxes and benefit in multiple ways yourself.

   Getting Stock Quotes
It's easy to see how stock quotes could be confusing, but actually once explained, stock quotes are one of the easiest parts of the stock market to understand. Once you just know what each number means, you'll have no problem getting your own stock quotes!

   Investing in the Stock Market
Investing in the stock market can seem overwhelming and scary, a lot like a really small fish swimming in a really small pond. Rest assured however, investing really isn't as scary as you may think and once you just get started you'll be well on your way to a becoming a seasoned investor!

   Should I Get Out of the Stock Market?
Investing in the stock market has historically outperformed other investments such as bonds or CDs. There are three areas to consider before getting in or out of the stock market: your risk tolerance, the amount of time you have till retirement and if you have other investment options.

   Stock Market for Beginners
If you have never worked with it before, the stock market isn't exactly the best of places for beginners. That is, unless you know where to start. Here, in a nutshell, is the stock market for beginners.

   Understanding Puts and Calls
Puts and calls may sound confusing but really they're just one more facet of that sometimes overwhelming world of investing. With investing you really just need to take it line upon line and with that you'll being able to understand puts and calls!

   Understanding Stock Brokers
There are so many different facets to the stock market and the stock broker is only one of them. With stock brokers, to get you started you need to know what they do and the different kinds you can hire.

   Understanding Stock Options
You hear about stock options all the time, but what exactly are they? Stock options can actually be a great financial instrument that allows you to get the most out of your investment money.

   Understanding the Stock Market
The stock market is easily very confusing and if you don't know the basics, even more confusing. However, in order to understand the basic tenets of the stock market, you only need to know a few core bits of information.

   What Are Penny Stocks?
You've probably heard the phrase penny stock thrown around without really knowing what it means. You'll soon find out that penny stocks, while a potential lucrative business investment, carry a high degree of risk and should be approached with caution.

   What is a Bear Market?
In the financial section of the papers or in news magazines you can easily come across the phrases "bull market" and "bear market" but have no idea what they mean. They're not that difficult to understand and once you do you'll better be able to understand the investment market at large.

   What is a Bull Market?
Pay attention to financial news for any length of time and you will undoubtedly run across the phrases "bull market" and "bear market." What do they mean, though? Here's what the first type of market (a bull market) represents.

   What is a Derivative?
A derivative is a risk-shifting agreement, which is valued based on the underlying asset. The underlying asset could be a physical commodity, an interest rate, a company stock, a currency or other type of tradable asset. You can learn to trade stock options by going to the Chicago Board Options Exchange and practicing with a free virtual trading account. There is no risk to paper trading and you can learn all the trading strategies.

   What is the Dow Jones Index?
Understanding the Dow Jones Index is critical to understanding the stock market as a whole and as an investor, knowing the Dow Jones is key. One of world's leading authorities on the state of the stock market, the Dow Jones is quite an indispensable resource for investors.