Investing In Stocks

 

Stocks and Bonds

In today's volatile market, it is more important than ever to have a plan. Plans helps us not to impulsively react to short term market downturns. Smart investors take a long-term view, putting money into investments regularly and keeping it invested for five, ten, fifteen, twenty or more years.

Stocks - Owning Part of a Company

What Are Stocks? Shares of stock may be acquired on an organized exchange such as the NASDAQ or New York Stock Exchange (NYSE), through a stock-broker, over the counter or by direct purchase in some cases. When you buy stock, you become an owner of the company and are known as a stockholder, or shareholder. Stockholders can make money in two ways, either by receiving dividend payments, and/or by selling stock that has appreciated. A dividend is an income distribution by a corporation to its shareholders, usually made quarterly. Stock appreciation is an increase in the value of stock in the company, generally based on its ability to make money and pay a dividend. However, if the company doesn't perform as expected, the stock's value may go down.

There is no guarantee you will make money as a stockholder. In purchasing shares of stock, you take a risk on the company making a profit and paying a dividend or seeing the value of its stock go up. Before investing in a company, learn about its past financial performance, management, products and how the stock has been valued in the past. Learn what the experts say about the company and the relationship of its financial performance and stock price. Successful investors are well informed.

Stock options. Some companies offer employees stock options, which they can use to buy stock in the company at a fixed price. For example, your employer, Wally's Widgets, offers a stock-option plan, and its stock is valued at $30 a share. The stock-option price is set at $40 a share. As part of your compensation for meeting company goals and contributing to increased profits, you receive options to purchase 100 shares. Over time the value of the Wally's Widgets shares appreciates to $50 a share. You may now want to exercise your stock options and purchase the shares valued at $50 for $40.

Upon request, Atlantic Financial can help you find a stock that meets the criteria listed above.

Atlantic Financial's brokers and representatives are licensed. We do not have hidden profits nor do we take a piece of the spread from our clients. Some methods investors can use to determine if they should purchase a stock are listed below:
High insider holding rate
Strong potential for increased earnings
Industry leader
Exciting new product
Insider purchase ratio favorable
Global potential Industry potential
Number of shares outstanding less than 10 million
Steadily increasing earnings per share rate
Strong relative strength vs. the market
At or making new highs on increased volume