OnlineStockTradingMadeEasy by Deyan Dimitrov (ebook reader for surface pro txt) 📕
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- Author: Deyan Dimitrov
Read book online «OnlineStockTradingMadeEasy by Deyan Dimitrov (ebook reader for surface pro txt) 📕». Author - Deyan Dimitrov
But do remember that the predictions can never be cent percent accurate, or else no one would ever lose money now, would they? Even the biggest businessmen at times sometimes just go with their gut feelings rather than any chart.
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Online Stock Trading Made Easy
Boosting Your Investment By Trading Commodities Online
Commodities trading deals with agricultural products, such as wheat, malt, sugar and corn, as well as metals, such as gold and contracts based on the purchase and trade of these goods, as opposed to the stock market which deals with all types of financial instruments, such as stocks, government securities, interest rates and indexes.
With the advent of technology, both stock and commodities trading are now traded online. For purposes of discussion, we will focus on commodities trading online.
The industrial revolution ushered in new technology that include more effective tools, a number of which are capable of creating more food. This new efficiency demanded more agricultural storage, transport, and more competent circulation of produce.
At first the markets could handle the rising demand for food, but as volume grew, the commodity markets with uniform pricing and delivery became progressively more significant. A system was then developed to cope with the hoarding of goods that happen during harvest times and with the scarcity that occur before the harvest.
With the new system, buyers could arm themselves from price irregularity by closing a deal for a certain commodity that is fixed at a particular price before they have a need for it. The contract based on this system is now known as futures.
The place where all these agricultural products as well as contracts based on the agreements between buyer and seller are being traded are called commodities exchanges.
Prior to the electronic age, there are certain places designated as commodities exchanges, however, these are now conveniently available on the net. Online trading are also referred to as screen-based or electronic trading.
In online commodities trading, customers send, buy or sell orders from their computers to an electronic marketplace offered by the exchange. There is no need to have brokers act in behalf
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Online Stock Trading Made Easy
of the customers, as brokerage approvals to trade are generated electronically. The online trading screen now takes the place of the trading pit.
An advantage for online commodities trading is price transparency since the top five current bids and offers are posted on the trading screen, in full view of all electronic market participants.
As with any investment though, an uptick in a certain commodity where one places his money could generate for him huge earnings but a drop in prices would provide the same loss. For example, assuming prices for meats would go up in the succeeding three months, a meat shop owner decides to place an order for one cow from a cattle raiser who sells it for $5.
This is to be delivered to the meat shop owner three months from when the deal is closed. They both sign a contract. The following day, cow prices rose to $6. The cattle raiser in this case loses $1 while the meat shop owner gains $1.
There are various trading sites available for online commodities trading. A minimum fee entitles an investor to create an account that entitles him to researches and technical analysis on listed companies, apart from actually trading online. Most have help desks and other tools necessary to assist an investor in coming up with the best possible judgment.
Online trading is great way to boost your investment without having to get out of the house and dressing the part. However, you must realize that commodities and the stock market in general live on volatile market conditions and therefore easily influenced by even the slightest economic and political changes. Click carefully.
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Online Stock Trading Made Easy
Boost Your Investments With Online Commodities Trade
The online trading of commodities covers agricultural products like wheat, sugar and corn, as well as metals, like gold and contracts based on the purchase and marketing of these products, as opposed to the grant that covers all kinds of financial instruments, like stocks, government security, interest rates and index .
With the advent of technology, livestock and commercial products are being traded online. For purposes of discussion, we will focus on commodities for online trading.
The Industrial Revolution ushered in a new technology that includes effective tools, a number of them are able to create more volume of food. This demanded more efficient agricultural storage, transport, traffic and the best product.
Initially, the market could handle the growing demand for food, but that the volume has increased commodity markets uniform price ranges and delivery became so much more important. A system is being developed to deal with the storage of goods that may occur during harvesting and scarce that occur before a harvest.
Thanks to the new system, buyers can arm pricing irregularities by the closure of a case for a certain product which is fixed at a price before they need it. The contracts based on this system are now known as the futures.
The places where these agricultural produces, as well as contracts on the basis of agreements between the buyers and sellers are traded, are known as the commodity exchanges.
Before the dawn of the electronic age, we had designated areas as trade, however, it is now readily available on the network. Online trades are also called screen based trades.
So you cn buy and sell from your PC, now. It is not necessary to have a broker act on your behalf, brokerage approvals are generated in electronic commerce. So tyhe trade pit is replaced by the net.
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Online Stock Trading Made Easy
One advantage online as a basis for negotiation is that of price transparency, since the 5 current bids are displayed on the screen of negotiation at the sight of all participants in the electronic marketplace.
Like any investment, if an acceleration of a certain base where one placed his money could generate huge profits, but likewise, a drop in the prices means a huge loss.
There are various commercial sites available online for products as a basis for negotiation. A minimum fee lets you establish an account that gives the right to research and conduct technical analysis on the listed companies, everything except for the negotiation online.
Online trade is an awesome way to increase your investments without having to leave the house or the office. However, we need to realize that commodity and stock market generally, live on the unpredictable market condition and are thus easily influenced by seemingly unimportant political and economic changes.
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Online Stock Trading Made Easy
An In-Depth Analysis Of Initial Public Offering: IPO Versus Business Loans
Supposedly you are one of the members of the board of directors of a certain company. The board realized that there is a need for additional capital infusion since the company registers a consistent growth rate in terms of production and marketing aspects. Such growth needs to be addressed in order to avoid later problems that may even result to the mismanagement of the company and possible bankruptcy instead of a progressive corporate output.
There are various suggestions raised by your colleagues. Some suggest that since the company has enough funds, it could be used to finance a business loan that will be used to sustain the company’s growth. Others suggest that the company must go public in order to attract several investors who will infuse the needed capital for the growing operation of the company.
As a member of the board of directors, which way will you pursue? Remember that there are two options that the company can take—first is entering into a loan agreement wherein you need to present any corporate assets as security to the loan. Second, the company could be listed into an IPO or initial public offering, determine the number of shares that the company wants to sell to the public, and the rest will just follow. Both options can raise revenues, yet the question will not just be about generating additional revenues at all.
The question will now be like this: “Which of them provides an advantage to the company and its stakeholders?”
Let us scrutinize the options carefully by going through the first option. The process is simple: once the company found a lending institution that will agree to lend the company with the needed amount, the company through its high executives and officials will enter a contract with a lending company and make an agreement on the conditions prior to the approval of the loan. It will include securing any company assets with equivalent value of the loan against the company and monthly repayments within a specified period of time with applied interest.
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Online Stock Trading Made Easy
The second option will involve the initial sale of the company’s common shares to the public. The company will undergo the IPO process under its governing laws, particularly the Federal Securities Act of 1993 and the governing bodies (such as the Securities and Exchange Commission and the exchange where the common shares of the company are currently listed). Typically, you will spend more or less than $1 million in the whole process, but the initial return of investment is higher than your expenses, since the underwriters (composed of several investment banks) will sell the shares to interested investors higher than its market value.
If you will compare the two options, definitely the initial cost is higher when the company undergoes IPO. The return of investment has yet to be seen after the completion of the process. In other words, you will be spending first before you earned the revenues that you need. It is contrast with securing a loan since you will be able to get the borrowed capital even before you make any repayments. You will be able to use the funds immediately after the released of the approved loan money.
However, the loan will now be on the “negative” side once you will make repayments to the loan that you availed. Remember that once you failed or faltered on the conditions agreed on the loan, the collateral, which is your company’s assets, will be automatically taken away by the lender. In IPO, the assets will not be at risk. Instead, such assets will increase because of additional capital raised through IPO.
The choice between an IPO and a business loan is up to you. Scrutinize the given options and make the right choice.
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Online Stock Trading Made Easy
An Analysis Of IPO Versus Business Loans
Imagine you are on the board of directors of a company which requires a capital boost to maintain a steady rise in production and sales. It is imperative to keep the rise under check to prevent unforeseen hitches in the future which can lead to the company’s malfunction instead of its advancement.
Among the several propositions you may receive from your workmates, it may be suggested to use the company’s existing funds to advance some business credit to support the growth or to open it to the public hoping to draw in interested shareholders to supply the required finance needed for the rise in production.
You could chose either of the above options after thinking over both possibilities well enough considering both the benefits and the risks involved. If you chose the first option, you will have to reveal some of the company’s resources as proof for the loan’s authenticity. The second option allows you to be enlisted in an IPO and count the shares to be sold to the public and so on.
There will arise a doubt on which choice would be of greater benefit to the company and its shareholders.
Analyzing the first option, it includes a relatively easy procedure which involves
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