Preferred Shares and Common Shares
Before any Canadian investor puts their hard-earned money into any particular investment, they should be aware of the loads and risks involved in their share class. The uninformed investor will pick their investment without considering the share class they have bought into. This could result in unanticipated investment loss or poor dividend performance. In order to make an informed, financially wise decision in securing your investment you should have a basic understanding of the share classes and their differences.
This share grouping refers to shares that are guaranteed somewhat like bonds, to pay when there are dividends to be had. The share is also secured in the event that the company goes bankrupt. The preferred shares holder is guaranteed first dibs at company assets before the common shareholder. With this safety however, comes a price. The interest on preferred shares is lower than …Continue Reading
Picking The Best Stocks To Buy
Every trader wants to know the best stocks to buy or the next best tip that will give him or her the edge while trading. A good stock picking strategy that will find you the best stocks to buy is also highly dependent on your trading style. For example, a trader that has a longer term trading goal will use a list of criteria that skew towards fundamental analysis.
Shorter term trading will be tuned towards technical analysis
The truth is finding the best stocks to buy requires experience, time, and energy. It is not something that can be learned completely by reading books. With that said, sticking to the following list of general best practices when choosing stocks will aid you in maximizing your chances of picking successful ones.
1. High Liquidity – When trying to find the best stocks to buy, …Continue Reading
PE Ratio – The Price To Earnings Ratio And What It Means
The price to earnings ratio, or PE ratio is one of the most popular financial terms used in stock market discussions.
It is generally assumed that the market value of a share reflects both the past performance and the expected performance of a company. It indicates how a company is perceived by the market, even though the market often misprices stocks. The market price of a share reflects a company’s profitability, growth prospects, risk characteristics, corporate image and liquidity position. Hence valuation ratios are considered to be a comprehensive measure of a company’s performance. The following is an explanation of the PE ratio.
Price to Earnings Ratio, or PE Ratio.
Price To Earnings Ratio
The PE ratio is also referred to as a company’s ‘multiple’ and is readily available in the financial section of newspapers. A PE ratio …Continue Reading
Semi Retirement Or Full Time – Which Is Right For You?
The only thing constant in life is change.
Our life passes through different phases. One of the phases is retirement. It is that phase of life, when people, who have served throughout their lives, stop working or working for them becomes optional. It can also be defined as a stage when people have achieved financial independence i.e. their income is generated but they do not have to work for it. It is achieved when a person gets pension from employer, in exchange for the stipulated years of service provided or when returns are being generated from the investments made earlier in life, which are enough to cover the day to day expenses of the person
Some people welcome the change of retirement and some people dread it. People welcome retirement because, after years of service, they finally have all …Continue Reading
How Do Stocks Work?
When you buy the stocks of a company, you own a segment of the business. When a company wants to raise more money, it often issues shares via an Initial Public Offering (IPO) whereby the price of the shares is determined based on the estimated value of the company. The company is able to keep the cash raised to fund its operations while the stocks (or shares) continue trading on the regulated exchange, like the New York Stock Exchange (NYSE).
Investors and traders get to buy and sell the shares of the company at the exchange, but the company itself does not reap any monetary benefit from this kind of trading. However, the company gets money from the Initial Public Offering.
What’s A Stock?
A stock refers to a share of a company’s ownership. A shareholder is one of the many owners of a given company …Continue Reading
What Should I Invest In For 2018
It’s 2018! This means new resolutions, new goals, and, of course, new investments! But, what should you invest to get more out of your money in this new year? Well, here are top 5 growing industries of 2018 that you can look into!
Robotics and Artificial Intelligence
If top companies such as Google and Apple are investing in this industry, then you should too!
The year of 2017 showed the immense demand for the industry. A whopping $3 billion worth of investments went into this sector, and the number is expected to grow. 3D printers also forecasted a massive demand despite being a relatively new technology. It is estimated that $35 billion will go into these printers.
Similar to 3D printers, Artificial Intelligence is a relatively new technology that has a very high demand. Top companies like Amazon Echo and Google are big …Continue Reading