Stock Investing For Dummies

410 Pages·2016·3.3 MB·English

by  Paul Mladjenovic

Stock Investing For Dummies®, 5th Edition
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Library of Congress Control Number: 2016935126
ISBN 978-1-119-23928-4 (pbk); ISBN 978-1-119-23929-1 (ebk); ISBN 978-
1-119-23930-7 (ebk)
Stock Investing For Dummies®
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Table of Contents
Cover
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1: The Essentials of Stock Investing
Chapter 1: Surveying the World of Stock Investing
Understanding the Basics
Preparing to Buy Stocks
Knowing How to Pick Winners
Chapter 2: Taking Stock of Your Current Financial
Situation and Goals
Establishing a Starting Point by Preparing a Balance Sheet
Funding Your Stock Program
Setting Your Sights on Your Financial Goals
Chapter 3: Defining Common Approaches to Stock
Investing
Matching Stocks and Strategies with Your Goals
Investing for the Future
Investing for a Purpose
Investing for Your Personal Style
Chapter 4: Recognizing Risk and Volatility
Exploring Different Kinds of Risk
Getting the Scoop on Volatility
Minimizing Your Risk
Weighing Risk against Return
Chapter 5: Stock Investing through Exchange-
Traded Funds
Comparing Exchange-Traded Funds and Mutual Funds
Choosing an Exchange-Traded Fund
Taking Note of Indexes
Part 2: Before You Start Buying
Chapter 6: Gathering Information
Looking to Stock Exchanges for Answers
Grasping the Basics of Accounting and Economics
Staying on Top of Financial News
Reading (And Understanding) Stock Tables
Using News about Dividends
Evaluating Investment Tips
Chapter 7: Going for Brokers
Defining the Broker’s Role
Distinguishing between Full-Service and Discount Brokers
Choosing a Broker
Discovering Various Types of Brokerage Accounts
Judging Brokers’ Recommendations
Chapter 8: Investing for Long-Term Growth
Becoming a Value-Oriented Growth Investor
Choosing Growth Stocks with a Few Handy Tips
Chapter 9: Investing for Income: Dividend-Paying
Stocks
Understanding the Basics of Income Stocks
Analyzing Income Stocks
Exploring Some Typical Income Stocks
Chapter 10: Understanding Technical Analysis for
Stock Investors
Comparing Technical Analysis and Fundamental Analysis
Staying on Top of Trends
Getting the Scoop on Technical Charts
Surveying Technical Indicators for Stock Investors
Part 3: Picking Winners
Chapter 11: Using Basic Accounting to Choose
Winning Stocks
Recognizing Value When You See It
Accounting for Value
Chapter 12: Decoding Company Documents
A Message from the Bigwigs: Reading the Annual Report
Dig Deeper: Getting a Second Opinion
Do It Yourself: Compiling Your Own Research Department
Chapter 13: Emerging Sector and Industry
Opportunities
Telling the Difference between a Sector and an Industry
Interrogating the Sectors and Industries
Outlining Key Sectors and Industries
Chapter 14: Small Cap Stocks, IPOs, and Motif
Investing
Exploring Small Caps
Investigating IPOs
Getting the Scoop on Motif Investing
Chapter 15: The Big Economic and Political
Picture
Tying Together Politics and Stocks
Poking into Political Resources
Part 4: Investment Strategies and Tactics
Chapter 16: Discovering Screening Tools
Understanding the Basics of Screening Tools
Touring a Stock Screening Tool
Checking Out an ETF Screening Tool
Chapter 17: Understanding Brokerage Orders and
Trading Techniques
Checking Out Brokerage Orders
Buying on Margin
Going Short and Coming Out Ahead
Chapter 18: Using Trade Triggers and Advanced
Conditional Orders
Trying Trade Triggers
Considering Advanced Conditional Orders
Chapter 19: Getting a Handle on DPPs, DRPs, and
DCA … PDQ
Going Straight to Direct Purchase Programs
Delving into Dividend Reinvestment Plans
The One-Two Punch: Dollar Cost Averaging and DRPs
Chapter 20: Corporate and Government
Skullduggery: Looking at Insider Activity
Tracking Insider Trading
Looking at Insider Transactions
Considering Corporate Stock Buybacks
Stock Splits: Nothing to Go Bananas Over
Keeping a Close Eye on Congress
Chapter 21: Keeping More of Your Money from the
Taxman
Paying through the Nose: The Tax Treatment of Different
Investments
Sharing Your Gains with the IRS
Discovering the Softer Side of the IRS: Tax Deductions for
Investors
Taking Advantage of Tax-Advantaged Retirement Investing
Part 5: The Part of Tens
Chapter 22: Ten Indicators of a Great Stock
The Company Has Rising Profits
The Company Has Rising Sales
The Company Has Low Liabilities
The Stock Is at a Bargain Price
Dividends Are Growing
The Market Is Growing
The Company Is in a Field with a High Barrier to Entry
The Company Has a Low Political Profile
The Stock Is Optionable
The Stock Is Benefiting from Favorable Megatrends
Chapter 23: Ten Ways to Profit in a Bear Market
Find Good Stocks to Buy
Hunt for Dividends
Unearth Gems with Bond Ratings
Rotate Your Sectors
Go Short on Bad Stocks
Carefully Use Margin
Buy a Call Option
Write a Covered Call Option
Write a Put Option to Generate Income
Be Patient
Chapter 24: Ten Investments and Strategies That
Go Great with Stocks
Covered Call Options
Put Options
Cash
EE Savings Bonds
I Bonds
Sector Mutual Funds
Motif Investing
Bearish Exchange-Traded Funds
Dividend Yield Exchange-Traded Funds
Consumer Staples Exchange-Traded Funds
Part 6: Appendixes
Appendix A: Resources for Stock Investors
Financial Planning Sources
The Language of Investing