Wednesday, April 2, 2008

TO WATCH IN THE MARKETS

Buy and Hold Strategy
The buy and holding approach gathers shares of a company for long-term development profit and positive assets, resources, investment gains tax on profits. This strategy implies an investment motion, which includes the investor to hold the stock for maximum period in spite of begin involved in day trading. One of the main advantage of a buy and hold strategy is the patience of the process. Investors adopt the buy and hold strategy generally with the stocks and shares from renowned company

Times gone by has demonstrated that a buy and hold strategy do better efforts to time the market in absolute returns.

The buy and hold strategy needs be seated on a place for long time with the anticipation that the share price will appreciate.

Share and Market Price
Share: The share symbolizes an investor's possession in a "division or share" of the profits, losses, and assets of a company. It is produced when a business shape itself into section and put up for sale them to shareholder in substitute for cash.

Market Price: The market price the final stated price of a share at which it was put up for sale on the stock exchange.

Market Cap
If you buy increasingly share of stock in a company then the sum total of money you would have to pay is called the Market Cap. The formula to calculate market cap is to multiply the number of shares by the price per share.

Financial Terms
Earnings per Share: Earning per share is the sum total of profit to which each share is unrestricted.

Going Public: It is a colloquial speech for when a company is preparing of an IPO.
IPO: It is as abbreviation for Initial Public Offering. It is when a company sells stock in itself for the first time is called an IPO.

Liquidity
Liquidity is the state of having hard cash, or possessing assets, this hard cash and assets can be further promptly transformed into cash. Yet, at incidental prices, almost any asset can be turned into cash. At its fair market price to have high liquidity, an asset must be exchangeable into cash.

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