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Investing Basics - The Best of 2004
http://www.investopedia.com
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Table of Contents:
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1. Term of the Year: Barefoot Pilgrim
2. Article of the Year: Brokerage Functions: Underwriting and Agency Roles
3. Runner-up Article: The Stages of Industry Growth
4. Tutorial of the Year: Risk and Diversification
5. Runner-up Tutorial: Guide to Stock-Picking Strategies
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Term of the year: Barefoot Pilgrim
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Slang for an unsophisticated investor who loses all of his
or her wealth from trading equities in the stock market.
Investopedia Says:
Being labeled a barefoot pilgrim is far from enviable.
It is usually the result of taking on more risk than
necessary or entering investments carelessly, without
doing the proper research.
For related terms and articles, please visit:
http://www.investopedia.com/terms/b/barefootpilgrim.asp
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Feature Article: Brokerage Functions: Underwriting and Agency Roles
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For the sake of simplicity, especially from the point of view
of the retail investor, it is often appropriate to refer
to an investment dealer as a broker. When we deal with a
securities firm as an individual, we are asking that firm
to broker a transaction on our behalf. However, we should
know that the firm has plenty of other business that does
not involve our retail trades: the firm's underwriting and
principal trading may form the largest portion of its
ongoing business. Here we look at what these activities
are and how they function in the process of issuing securities.
To read the remainder of this article, please go to:
http://www.investopedia.com/articles/basics/04/042304.asp
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Runner-up Article: The Stages of Industry Growth
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It is no accident that the companies within a particular
industry move in lock-step with one another. Companies
in a single industry are forever bound by the type of
product or service that they provide, and they are
constantly competing with one another for market share,
consumer acceptance, as well as technological leadership in
their particular sub-sector.
These competitive and consumer
forces shape an industry's corporations and determine the
status of the industry as a whole. These forces have
followed roughly the same patterns over time, providing a
very clean model for the life cycle of an industry, the
various stages of growth (and decline) experienced by
its companies. Here we take a look at these stages and
how they determine what kind of investments these companies are.
To read the remainder of this article, please go to:
http://www.investopedia.com/articles/basics/04/030504.asp
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of 20 calls. Includes stocks, commodities, indices and FOREX.
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Enroll here:
http://www.elliottician.com/inv1104ibs
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Tutorial of the Year: Risk and Diversification
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With the markets moving up and down like a six-flag roller
coaster is there anything you can do to stomach the risk?
Have you carefully considered the various risks that are
associated with each investment you make?
The fact is, many people either don't want to or don't have
a clue how to protect themselves from unneeded risk. This
tutorial hopes to correct that. The next few pages will
introduce you to risk and give you a good foundation to
understand the relationship between return and risk.
To read the remainder of this tutorial, please go to:
http://www.investopedia.com/university/risk/
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Runner-up Tutorial: Guide to Stock-Picking Strategies
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When it comes to personal finance and the accumulation of wealth,
few subjects are more talked about than stocks. It's easy to
understand why: the stock market is thrilling. But on this
financial rollercoaster ride, we all want to experience
the ups without the downs.
In this tutorial, we examine some of the most popular strategies
for finding good stocks (or at least avoiding bad ones).
In other words, we'll explore the art of stock picking - selecting
stocks based on a certain set of criteria, with the aim of
achieving a rate of return that is greater than the market's
overall average.
To read the remainder of this tutorial, please go to:
http://www.investopedia.com/university/stockpicking/default.asp
Happy New Year!
The Investopedia Staff
http://www.investopedia.com
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