Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

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140
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12answers
22k views

Best way to start investing, for a young person just starting their career?

I am young, just started my career, and looking to begin investing so I can make my money work for me. I'm still living like I did in college (occasional purchase on myself, but most of it goes into ...
29
votes
4answers
2k views

Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?

I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year. My ...
25
votes
3answers
61k views

Can someone explain a stock's “bid” vs. “ask” price relative to “current” price?

In my online brokerage account, I want to buy a particular stock and I see : Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is : 13.22 Can someone explain what the bid and ask ...
21
votes
5answers
2k views

Strategies for putting away money for a child's future (college, etc.)?

So my wife and I will be having our first child at the end of the year, and I'm trying to devise a strategy for things like putting money away for the little person now, while I have the time and ...
11
votes
4answers
2k views

Book or web site resources for an absolute beginner to learn about stocks and investing?

I'm completely new to the world of investing and stocks. Knowing that I shouldn't invest or buy stocks until I know it well enough, I was wondering which cheap or affordable resources would be the ...
16
votes
6answers
1k views

How do I get into investing in stocks?

How do I get into investing in stocks?
81
votes
12answers
12k views

Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down? Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
67
votes
10answers
8k views

Why does gold have value?

I'm curious about why is there so much financial interest and news coverage about gold. It's hard to do things like buy food or pay the rent with gold, but I can do this with cash. Gold doesn't yield ...
8
votes
2answers
221 views

How do I account for newly added money when computing my rate of return?

I have a simple spreadsheet where I track the balance in my investment account. What should I do to handle new deposits in the account? For example: End of Day 1: balance = $100 End of Day 2: ...
12
votes
6answers
540 views

Does dollar cost averaging really work?

Does dollar cost averaging really work? If I have money available now, why shouldn't I invest it all at once? If the market's going up, wouldn't that be better?
15
votes
2answers
1k views

How would bonds fare if interest rates rose?

The first thing I learned about bonds is that when interest rates rise, the price of existing bonds tends to fall. Unfortunately, I didn't learn much else about bonds. So I have a couple questions ...
7
votes
2answers
974 views

Legal documents required for managing an investment portfolio among friends?

I am considering setting up a personal kind of hedge fund / stock portfolio among friends. I am trying to figure out what kind of a legal agreement I should have them sign for investing with me to ...
13
votes
5answers
1k views

How to evaluate stocks? e.g. Whether some stock is cheap or expensive?

What kind of information do you obtain before buying (or selling) a stock? I know the PE ratio is very important, but not the only thing. Are there any rules of thumb to determine whether some stock ...
23
votes
7answers
1k views

Shares; are they really only for the rich/investors?

I've always been under the impression, that if you want to be a player in the "shares game" you either have to be an full time investor, or someone who has a lot of money to play with. Is this true? ...
21
votes
2answers
2k views

What to do with sudden wealth?

I am about to receive a considerable(for me, anyway) amount of money- about $100k- and really have no idea what to do with it to make it grow even larger. Of course I want to pay off credit card ...
22
votes
3answers
29k views

Is the “Bank on Yourself” a legitimate investment strategy, or a scam?

There seem to be a lot of advertisements by "Bank on Yourself", promising to show how you can invest in a certain type of life insurance policy. Is this really a legitimate investment strategy, or ...
7
votes
2answers
717 views

How can I purchase Skype stock during the IPO?

Skype will be going IPO soon. How can I purchase their IPO stock?
15
votes
1answer
227 views

Is there a benefit to creating a donor advised fund to make charitable donations instead of simply donating to organizations each month?

I'm looking to set up recurring charitable donations to various groups, and I'm considering using a donor-advised fund through Fidelity or Vanguard. General question: Is there a benefit to placing ...
10
votes
3answers
422 views

Investing in a leveraged index ETF for retirement. Risky?

I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around ...
4
votes
2answers
1k views

Pros & cons of buying gold directly vs. investing in a gold ETF like GLD, IAU, SGOL?

Google search brings up some articles on this topic, but they can be biased, so: What are the advantages and disadvantages of buying physical gold vs. investing in a gold ETF like GLD, IAU, or SGOL? ...
3
votes
1answer
553 views

Are Investment Research websites worth their premiums?

There are websites that claim to own formulas that outperform the market. Examples of these websites are - Zacks Investment Research or Investors Business Daily. Each keep a list of equities that they ...
0
votes
3answers
209 views

Can a wealthy investor invest in or make a deal with a company before it goes public / IPO?

Can a wealthy investor invest his money in any company before it goes public / IPO? I am referring to a recent Goldman Sachs and Facebook deal worth $450 Million at a valuation of $50 Billion dollars. ...
40
votes
8answers
4k views

Why does a company pay dividends at all?

If a company can lower the dividends and even stop paying them at all during hard times, why would they re-install them at all? If I understand correctly a company pays dividends so that investors ...
22
votes
6answers
1k views

In general, is it financially better to buy or to rent a house?

I know this differs from country to country, from person to person (depending on how much you already have saved), but I'm curious about the simplest example. Let's say I have little to no money. I ...
14
votes
4answers
2k views

Is it true that 90% of investors lose their money?

Many investment gurus state that majority of investors fail and then offer a proven "[insert fancy name] investment strategy" that will make you successful. The number usually starts at 90% and often ...
14
votes
1answer
436 views

What are the important differences between mutual funds and Exchange Traded Funds (ETFs)?

I've been considering, but haven't committed myself yet to investing in Exchange Traded Funds (ETFs), but have to admit that I don't yet fully understand the use-case for them. What factors are ...
12
votes
4answers
6k views

When is Cash Value Life Insurance a good or bad idea?

What makes CVLI either good or bad? If you get it while young (~23 years old) and have a respectable starting salary then what are some benefits or detriments to having it? The specific policy I'm ...
17
votes
5answers
1k views

How can life insurance possibly work as investment?

Every here and there I hear about the following investment option: There's an insurance company that is willing to take my money and hold it for some very long time (like 5 years or more) and then ...
6
votes
4answers
415 views

When is a good time to invest in gold? In what situations is the price of gold likely to drop?

When is a good time to invest in gold? What are situations likely to trigger a drop in gold prices? What are alternatives to gold?
13
votes
5answers
1k views

Why should I invest my money in a life insurance policy?

As i am 24 now i get lot of calls from lot of insurance companies asking to take up an insurance policy.... So i decided to get answers for some of my questions in basicallymoney... Why should i ...
9
votes
2answers
358 views

How does compounding of annual interest work?

I have tried reading up on it, but I just find it confusing. Apparently, if you started investing $150/month at a 15% annual return and kept reinvesting the profits, here is what you would have ...
9
votes
7answers
4k views

A University student wondering if investing in stocks is a good idea?

I'm a University student (with a University student budget) and I was wondering if it is worth my trouble and my money to invest in the stock system? I don't know much about it, but it seems like a ...
23
votes
3answers
498 views

What are “preferred” stocks? How are they different from normal (common) stocks?

What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?
15
votes
3answers
332 views

Are peer-to-peer loans viable options for savings/investing?

Now that peer-to-peer sites like Lending Club and Prosper have matured are they viable options to add to my savings/investment portfolio or should I only use them with extra cash?
12
votes
8answers
1k views

At what interest rate should debt be used as a tool?

I know people love to preach the merits of being 100% debt-free, but when used intelligently, debt can be a powerful tool. All else equal, if I have debt at an interest rate of say 1% and have an ...
10
votes
3answers
738 views

Why would I want a diversified portfolio, versus throwing my investments into an index fund?

Index funds are well-known to give the best long-term investment. However, most financial planners recommend having a diversified portfolio, including components such as bonds and foreign markets. I ...
10
votes
3answers
5k views

How do I make a small investment in the stock market? What is the minimum investment required?

I am not rich, so I am talking one to two hundred U.S. dollars per month only. I would like to know whether I can buy stock using that little amount of money, and how to do that if possible? As an ...
8
votes
4answers
154 views

Other than being able to borrow to invest, how is a margin trading account different from a cash account?

Other than being able to borrow against one's portfolio value to purchase additional investments, how is a typical brokerage margin trading account different from a typical cash trading account? ...
8
votes
5answers
1k views

Buying gold / silver as a hedge against hyperinflation

I'm becoming more interested in buying gold / silver coins as a hedge against inflation and especially hyperinflation. I know very little about this, and there are thousands of sites on the internet ...
7
votes
3answers
492 views

Why are big companies like Apple or Google not included in the Dow Jones Industrial Average (DJIA) index?

I'm taking an investing and personal finance class in school. I was assigned to ask someone who knows about the stock market why big companies like Apple and Google aren't included the Dow Jones ...
6
votes
5answers
562 views

For the first time in my life, I'm going to be making real money…what should I do with it?

So I'm a college junior taking on my first actual paying internship this summer. I'll be making between $3000-$5000 a month. I know NOTHING about investing money, or what I should do with money ...
9
votes
4answers
1k views

Over how much time should I dollar-cost-average my bonus from cash into mutual funds?

I just cleared about $65k from my bonus. I don't want this sitting in cash, but at the same time prefer to move into stocks/bonds over time (e.g. I don't want to invest all $65k at one price, and ...
8
votes
4answers
307 views

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold?

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold? Is it possible for a regular person to just purchase shares in GLD?
6
votes
3answers
495 views

How does the yield on my investments stack up against other investors?

I started investing a couple years ago when I started working full time. My investments are doing well. I would ideally like to know how well. Of course, I can go see what my performance was in terms ...
5
votes
1answer
276 views

How to determine desired/required value with “value averaging”?

As opposed to dollar cost averaging (DCA), value averaging (as described in this eHow article) is a technique where the investor determines the value the investment should have after a given time ...
11
votes
1answer
218 views

WSJ article about CFDs - am I missing something?

In this WSJ article, it comments Traders held a net $22.6 billion in bets that the dollar will appreciate, a gain of 31% in net wagers over the previous week and the largest such position since ...
8
votes
5answers
3k views

What percentage of my portfolio should be in individual stocks?

It's easy to find guidelines for how much of my non-retirement portfolio should be in stocks as an asset class (i.e. via mutual funds) but I'm having trouble finding recommendations for how much ...
6
votes
1answer
144 views

Where to categorize crypto-currencies

In Germany, crypto-currencies like Bitcoin are all over the news lately, making me aware of the fact I don't know much about them. A journalistic TV program I was watching yesterday even claimed ...
6
votes
4answers
903 views

What could cause a stock to trade below book value?

A company's book value is the worth of all their assets. What would cause a stock to trade below book value?
6
votes
2answers
508 views

Effectiveness of technical analysis techniques: Any supporting studies?

Do you find Techical Analysis to be an effective way of increasing the returns on your investments? This can be either by itself, or in combination with other indicators. If so, what techniques do ...