Stock Market Guide for Beginners

in Investment
Stock-market Guide

How to Classify Stocks

Categorizing Stocks by Sector, Size and Index

There are so many thousands of public companies that finding a place to begin stock picking can be overwhelming.

Fortunately, stocks can be categorized in various ways, of which the most common are sector or size.

Classifying Stocks by Sector

It is possible to narrow the stock search by only focusing on the sectors which appeal, i.e. those that are already known and understood, or those that carry the appropriate level of risk.

While each company should be assessed individually, it is fair to say that some sectors are inherently riskier than others. For instance, the gambler may decide to invest in a mining exploration company. If it strikes gold, the investor will have hit the jackpot.

On the other hand it might explore for years and never find a commercial deposit. The investment could turn out to be worthless.

Other companies, like those in the food or banking sectors, are geared toward building up steady growth in sales and profitability. This should generate steady returns for investors, which is considered lower risk. Keep Reading

Learning about the Stock Market: Good Investing Educations

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Yahoo Finance

Where to Look for a Good Investing Education

Before investing in anything, go to the best sources available to learn about that particular investment vehicle.

A little education can go a long way.

Learning about stocks is a large undertaking that is well worth the effort. Understanding how the stock market works will help to make better, more informed investment decisions. Keep Reading

Beginner’s Fundamental Stock Analysis

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stock exchange basics pe ps net profit

New Investors Can Analyze Companies with a Few Simple Criteria

Price to earnings ratios, return on equity, operating margins … what does it all mean? Getting started with stocks doesn’t have to be as complicated as it seems.

The era of the Internet was supposed to usher in the perfect era of information sharing – and it has The problem for new investors is, there’s so much information it can be overwhelming.

Rather than be intimidated by the myriad of criteria to consider, a potential stock buyer can easily focus on a few of these important ones. Keep Reading

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