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| Fidelity Investments Blog |
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starting an investment club
investing in guiness
All members should agree on (1) the days and time that youre going to meet (most investment clubs meet once each month), (2) the place that youre going to meet, (3) the length of the meetings (most meetings last about two to three hours), (4) the organizational format that each meeting is going to take. If your investment club is going to use other types of software to keep track of stocks, profits, expenses, and other administrative information the newly hired secretary can purchase this software and have it installed. There are several good reasons why investing in the stock market is both wise and profitable: You have the chance for much better results and profits than when you invest your money in annuity savings or into the bank. Youll be able to learn about the stock market in a safe and secure environment with other people that understand your fascination with the stock market. When you invest in the stock market you need to be prepared to have some periods of time where youre operating at a loss. |
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| Investment Club Resources |
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| Starting An Investment Club |
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Glossary of Investment Terms
The following investment terms will help give your investment club a basic introduction into the language of investing.
The more that you understand about the world of investing the more youll enjoy your investment club. The information has been compiled from the following website:
http://www.netvest.com/edu/edu_glossary.html
ALL OR NONE (AON)
A stipulation to either a buy or a sell order which instructs the broker to either fill the order in its entirety of to fill none at all, the customer won't accept a partial execution (only 300 shares out of an order for 1000).
APPRECIATION
The increase in the value of an asset.
ASKED PRICE
The lowest price that anyone has declared that he will sell his security for at a given time. In over-the-counter stocks, the "ask" is the best quoted price at which a Market Maker is willing to sell a stock.
AT-THE-MONEY
An option where the strike (exercise) price is exactly equal to the trading price of the underlying security.
BID PRICE
The highest price anyone has declared that he wants to pay for a security at a given time.
BROKER
(1) An individual or a firm that charges a fee or commission for executing buy and sell orders submitted by another individual or firm. (2) The role of a brokerage firm when it acts as an agent for a customer and charges the customer for its services.
CALL OPTION
An option contract that gives the holder the right to purchase, and places upon the obligation to sell, a specified number of shares of the underlying stock at the given strike price on or before the expiration date of the contract.
CAPITAL
Accumulated money or goods used to produce income
COMMERCIAL PAPER
Short-term loans with maturities ranging from 2 to 270 days that are made to banks and corporations.
COMMODITY
Bulk goods such as metals, foodstuffs and grains which have the price determined by competitive bids and offers.
COMMON STOCK
An equity security that represents ownership in a corporation.
CUSIP NUMBER
A unique 9-digit number code for a given class of security (i.e.: Microsoft common stock or Acorn International Fund). CUSIP stands for the Committee on Uniformed Security Identification Procedures.
DAY ORDER
An order to buy or sell which, if not executed, expires at the end of the trading day it was entered.
DEALER
The role of a securities firm when it acts as a principal in a particular trade. A firm is acting as a dealer when it buys or sells a security for its own account and at its own risk and then charges the customer a markup or markdown.
DO NOT REDUCE (DNR)
Stipulation to order that instructs the broker not to decrease the limit price on buy-limit and sell-stop orders on the record date of a cash dividend.
EXCHANGE
Any organization, association or group of persons that maintains or provides a marketplace in which securities can be bought and sold. An exchange does not have to have a physical place of business and several electronic exchanges do business.
NASDAQ National Market Securities
The NASDAQ National Market consists of over 3,000 companies that have a national or international shareholder base, have applied for listing, meet stringent financial requirements and agree to specific corporate governance standards. To list initially, companies are required to have significant net tangible assets or operating income, a minimum public float of 500,000 shares, at least 400 shareholders, and a bid price of at least .
NASDAQ Small Cap Market Securities
The NASDAQ Small Cap Market consists of over 1,400 companies that want the sponsorship of Market Makers, have applied for listing and meet specific financial requirements. Once a company is approved and listed on this market, Market Makers are able to quote and trade the company's securities through a sophisticated electronic trading and surveillance system.
PENNY STOCKS
Low prices stocks trading in the over-the-counter market. Typically refers to shares trading below one dollar a share.
TRADING AUTHORIZATION
Document granting power-of-attorney rights to an agent of the account holder(s). You will find downloadable forms for both Limited Trading Authorization and Full Trading Authorization in the Industry Forms Download area.
Ireland Investment Property
Educational Program When your investment club is just starting out youll want to find educational material that is going to give all the members an overview of how investing works.
When To Walk Away From An Underwater Investment Property
20549-0213 http://www. A delay could mean a delay in your investing schedule. Youll have to contact your local government to find out what your own requirements are. APPRECIATION The increase in the value of an asset. 74 Volume NA Average Daily Volume (13wk) 1.
CUSIP stands for the Committee on Uniformed Security Identification Procedures.
Investors use the stock market to build their investment portfolio so that they can see a long term profit that takes place over a long period of time. Starting your own investment club will be a pleasurable, and perhaps profitable, way to spend time with other people that share the same investment passion that you do. If your investment group is thinking about making its first investment youll want to keep these stocks in time. Club members should communicate on a regular basis. At the time of the next meeting members can start to discuss the finer points of investing.
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