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From:
[email protected] (Christopher Lott)
Newsgroups: misc.invest.misc,misc.invest.stocks,misc.invest.technical,misc.invest.options,misc.answers,news.answers
Subject: The Investment FAQ (part 6 of 19)
Followup-To: misc.invest.misc
Reply-To: lott at invest-faq dot com
Summary: Answers to frequently asked questions about investments.
Should be read by anyone who wishes to post to misc.invest.*
Organization: The Investment FAQ publicity department
Keywords: invest, finance, stock, bond, fund, broker, exchange, money, FAQ
URL:
http://invest-faq.com/
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Archive-name: investment-faq/general/part6
Version: $Id: part06,v 1.58 2002/08/14 10:20:04 lott Exp lott $
Compiler: Christopher Lott, lott at invest-faq dot com
The Investment FAQ is a collection of frequently asked questions and
answers about investments and personal finance. This is a plain-text
version of The Investment FAQ, part 6 of 19. The web site
always has the latest version, including in-line links. Please browse
http://invest-faq.com/
Terms of Use
The following terms and conditions apply to the plain-text version of
The Investment FAQ that is posted regularly to various newsgroups.
Different terms and conditions apply to documents on The Investment
FAQ web site.
The Investment FAQ is copyright 2001 by Christopher Lott, and is
protected by copyright as a collective work and/or compilation,
pursuant to U.S. copyright laws, international conventions, and other
copyright laws. The contents of The Investment FAQ are intended for
personal use, not for sale or other commercial redistribution.
The plain-text version of The Investment FAQ may be copied, stored,
made available on web sites, or distributed on electronic media
provided the following conditions are met:
+ The URL of The Investment FAQ home page is displayed prominently.
+ No fees or compensation are charged for this information,
excluding charges for the media used to distribute it.
+ No advertisements appear on the same web page as this material.
+ Proper attribution is given to the authors of individual articles.
+ This copyright notice is included intact.
Disclaimers
Neither the compiler of nor contributors to The Investment FAQ make
any express or implied warranties (including, without limitation, any
warranty of merchantability or fitness for a particular purpose or
use) regarding the information supplied. The Investment FAQ is
provided to the user "as is". Neither the compiler nor contributors
warrant that The Investment FAQ will be error free. Neither the
compiler nor contributors will be liable to any user or anyone else
for any inaccuracy, error or omission, regardless of cause, in The
Investment FAQ or for any damages (whether direct or indirect,
consequential, punitive or exemplary) resulting therefrom.
Rules, regulations, laws, conditions, rates, and such information
discussed in this FAQ all change quite rapidly. Information given
here was current at the time of writing but is almost guaranteed to be
out of date by the time you read it. Mention of a product does not
constitute an endorsement. Answers to questions sometimes rely on
information given in other answers. Readers outside the USA can reach
US-800 telephone numbers, for a charge, using a service such as MCI's
Call USA. All prices are listed in US dollars unless otherwise
specified.
Please send comments and new submissions to the compiler.
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Exchanges - Ticker Tape Terminology
Last-Revised: 19 Sep 1999
Contributed-By: Keith Brewster, Norbert Schlenker, Richard Sauers
(rsauers at enter.net), Art Kamlet (artkamlet at aol.com)
Every stock traded on the world's stock exchanges is identified by a
short symbol. For example, the symbol for AT&T is just T. These
symbols date from the days when stock trades were reported on a ticker
tape. Ticker symbols are still used today as brief, unambiguous
identifiers for stocks. Similar abbreviations are used for stock
options and many other securities.
Ticker symbols get reused on different exchanges, so you'll sometimes
see a qualification ahead of the ticker symbol. For example, the symbol
"C:A" refers to a company traded on one of the Canadian exchanges
(Toronto, to be exact) with the symbol A. The stock quote services on
the web usually understand this notation. It's probably no surprise
that the North American-centric services pretty much assume that
anything unqualified is traded on a U.S. exchange; I've found that they
do not accept something like "NYSE:T" even though they perhaps should.
A few stock ticker symbols include a suffix, which seems to
differentiate among a company's various classes of common stock. Somem
of the quote services allow you to enter the ticker and suffix all run
together, while others require you to enter a dot between the ticker and
the suffix. For an example, try AKO, classes A and B.
Now that you understand a bit about the ticker symbol, there's some more
explanation required to understand what appears on the "ticker tape"
such as those shown on CNN or CNBC.
Ticker tape says: Translation (but see below):
NIKE68 1/2 100 shares sold at 68 1/2
10sNIKE68 1/2 1000 shares sold at "
10.000sNIKE68 1/2 10000 shares sold at "
The extra zeroes for the big trades are to make them stand out. All
trades on CNN and CNBC are delayed by 15 minutes. CNBC once advertised
a "ticker guide pamphlet, free for the asking", back when they merged
with FNN. It also has explanations for the futures they show. You can
also see an explanation on the web at this URL:
http://www.cnbc.com/onlycnbc/101/ticker.asp
However, the first translation is not necessarily correct. CNBC has a
dynamic maximum size for transactions that are displayed this way.
Depending on how busy things are at any particular time, the maximum
varies from 100 to 5000 shares. You can figure out the current maximum
by watching carefully for about five minutes. If the smallest number of
shares you see in the second format is "10s" for any traded security,
then the first form can mean anything from 100 to 900 shares. If the
smallest you see is "50s" (which is pretty common), the first form means
anything between 100 and 4900 shares.
Note that at busy times, a broker's ticker drops the volume figure and
then everything but the last dollar digit (e.g. on a busy day, a trade
of 25,000 IBM at 68 3/4 shows only as "IBM 8 3/4" on a broker's ticker).
That never happens on CNBC, so I don't know how they can keep up with
all trades without "forgetting" a few.
NASDAQ uses a "fifth letter" identifier in its ticker symbols. Four
letter symbols, and five letter symbols in instances of multiple issues
listed by the same company, are listed in newspapers and carried on the
ticker screen by CNBC and CNN. These symbols are required to retrieve
quotes from quote servers.
Here's the complete list of the NASDAQ fifth-letter identifiers with
brief descriptions:
Symbol Meaning
A Class A
B Class B
C exempt from NASDAQ listing qualifications for limited period
D new issue
E delinquent in required SEC filings
F foreign
G First convertible bond
H Second convertible bond (same company)
I Third convertible bond (same company)
J Voting
K Nonvoting
L misc situations, including second class units, third class warrants,
or sixth class preferred stock
M Fourth class preferred (same company)
N Third class preferred (same company)
O Second class preferred (same company)
P First class preferred (same company)
Q in bankruptcy proceedings
R Rights
S Shares of beneficial interest
T with warrants or rights
U Units
V When issued and when distributed
W Warrants
X mutual fund
Y American Depositary Receipts
Z misc situations, including second class of warrants, fifth class
preferred stock or any unit, receipt or certificate representing a
limited partnership interest.
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Financial Planning - Basics
Last-Revised: 22 Oct 1997
Contributed-By: James E. Mallett (jmallett at stetson.edu)
One complaint I often hear is that an individual would like to invest
but they do not have any money. Financial planning may help many people
to overcome this lack of ability to save for investment. With proper
planning perhaps you will be able to establish goals and save money to
meet these goals. While you can start this personal financial planning
yourself, you may soon discover that it will pay you to find a Certified
Financial Planner to help in the process.
This article gives a short primer on how to start personal financial
planning for yourself.
To begin the financial planning process, you need specific financial
goals. By specific goals, I mean to establish a date to meet the goal
and a savings plan that meets your goals. At first these goals may seem
unobtainable but continuing the planning process will enable you to
evaluate these goals and modify as necessary.
Next you need to track your expenses and income until you can develop a
yearly statement (cash/flow statement). To see where you are currently,
list the value of all your assets and what you owe. Subtract your debts
from your assets and you have your current net worth (balance sheet).
You should update these statements yearly.
Once you have established your income and expenses you can develop a
budget. Your aim in establishing a budget is to attempt to increase
your income and/or reduce your expenditures so that you have savings to
meet your initial goals. If on the first try you are short of funds, do
not despair.
Try looking at your taxes to see if they can be reduced. Consult a tax
attorney if necessary. Analyze your debt to see if it can be
consolidated into a lower interest rate loan. Perhaps a home equity
loan might fit the bill. Next review your consumption patterns. Are
your financial goals worth driving an older automobile; are you shopping
for the best prices; and what current expenses that you have are
unnecessary?
By getting your finances in order, you will gain funds to save and
invest toward your goals. If you do not have sufficient funds to meet
your goals, modify them. Look for opportunities in the future to
reestablish these goals. Seek the aid of financial professionals,
educate yourself with personal finance books and magazines.
Here are a few resources on financial planning.
* James E. Mallett's site about financial planning:
http://improveyourfinances.com/
* The International Association for Financial Planning offers a sales
pitch and some information on their site:
http://www.planningpaysoff.org/
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Financial Planning - Choosing a Financial Planner
Last-Revised: 20 Apr 1998
Contributed-By: James E. Mallett (jmallett at stetson.edu)
Virtually anyone with moderate wealth or a decent income could benefit
from the services of a financial planner. By a financial planner, I
mean someone with the expertise to produce a comprehensive financial
plan for an individual household. This plan should cover the
household's financial goals, budget, insurance and risk review, asset
allocation, retirement plan, and a review of an estate plan. Such
detailed planning is unlikely to be meet by brokers and agents
interested in commissions on financial products they sell.
A financial planner has a broad knowledge of areas such as tax planning,
investments, and estate law but is unlikely to be the financial
professional you require in these individual areas. Rather the
financial planner can help coordinate your financial planning with your
accountant, insurance agent, investment professional, and estate lawyer.
The broad expertise that a professional financial planner possesses will
help insure that your financial goals are met and that all areas of your
financial life are reviewed.
Hiring a planner will help you avoid expensive financial mistakes that
could seriously damage your financial health. It would not be difficult
for most financial planners to find serious gaps in most household
finances, gaps that are easily worth the cost of the planner's services.
Even individuals with expert knowledge in one finance field such as
investments can overlook areas such as insurance or estate planning.
Few people have the time, desire, or expertise to do a complete
financial plan for themselves.
Saying that most would benefit from using a financial planner is not to
imply that there are not wide differences in abilities and costs among
planners. Few areas will pay richer rewards for the public than gaining
basic knowledge in personal finance. If one is not careful, fees and
commissions could negate much, if not all, of the benefit of using a
financial planner. This article lists a few issues to consider when
choosing a financial planner.
The first step in looking for a financial planner is to limit your
search to someone who is certified in financial planning. Two
certifying associations that I would recommend are the Certified
Financial Planner and the Personal Financial Specialist (given to
qualifying Certified Public Accountants). The second step is to seek
out recommendations from people that you respect for names of financial
planners and interview these planners. Your aim is to find someone who
meets your needs and who will look after your interests. A problem that
exists in selecting financial professionals is that what is in your best
interest may fall a distant second to what is in their interest of
making a profit.
The third question you need to ask is how does the financial planner
receive compensation and what will this compensation cost you annually.
In calculating the costs, one must consider fees, commissions,
transaction costs, and (if any) what are the annual fees of the
financial products that they recommend (such as mutual fund management
fees). It is quite possible that after adding sales loads and
management fees, the after-expense return that you receive from equities
will not justify the risk. Recent high market returns have served to
mask the fleecing of many American investors.
Financial planners fall into two broad types: fee-only financial
planners and commission and/or fee-based financial planners. While some
give the nod automatically to fee-only financial planners, it will
depend on your particular circumstances as to which one will be best for
you.
If you only need a comprehensive financial plan and you are willing to
invest your funds yourself, than a fee-only financial planner who
charges by the hour may be your best choice. If you want the financial
planner to manage your money, than many fee-only financial planners have
moved to an asset-based fee, normally 0.5% to 1.5%, of your assets. Two
factors should be kept in mind. One is that this fee is charged
annually. Second, most financial planners put your funds to work in a
mutual fund and that means you continue to pay the mutual fund another
management fee annually. Since evidence and theory suggest that none of
these efforts will result in outperforming an index mutual fund, one
might wonder why not go directly there and save about 2% in management
fees. Plus, on average, you will have a mutual fund that will
outperform most professionals.
With commission-based financial planners, individuals run the risk that
the commissions charged on the financial products that they recommend
will add greatly to the cost of the financial planning. The risk of
conflict of interest arises when the planner receives greater
compensation based on what financial products that they recommend. It
may be possible, however, for some individuals that the free or
reduced-cost financial plan would not be offset by the higher
commissions. For example, the one-time load on the mutual fund might be
cheaper than paying the annual 1.5% fee to a fee-based financial
planner. You must compare all of these costs when deciding which
financial planner is the best for you.
Given this information on financial planners, it is clear that knowledge
on the consumer's part is very important. While many households will
spend a great deal of time shopping for an automobile, the decision of
whom to trust with their wealth too is often made without much thought.
As a result Americans spend many billions more on financial services
than what is really needed.
For more insights from James E. Mallett about financial planning,
please visit his site:
http://www.stetson.edu/~jmallett/finplan.htm
For a list of 10 questions you should ask before hiring a financial
planner, visit this government site:
http://www.pueblo.gsa.gov/cic_text/money/financial-planner/10questions.html
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Financial Planning - Compensation and Conflicts of Interest
Last-Revised: 19 Apr 2000
Contributed-By: Ed Zollars (ezollar at mindspring.com)
This article discusses the primary ways that financial planners are paid
for their services, and illustrates the biases and conflicts of interest
that invariably are present in each compensation scheme.
Hourly rate
When a financial planner is paid an hourly rate, he or she may have
a bias towards selling the client more advice than is needed,
and/or selling additional hourly services to the client. However,
the actual financial product sold to the client, or even if any is
sold at all, is a matter of indifference. A practical problem is
that this advice, if done properly (thorough investigation by
adviser into the entire background of the client) is going to be
very expensive because it needs to be customized to the client.
Thus, we see very little of this type of advice except for
specialized areas (like taxation, business law, etc.).
Flat rate
If a financial planner is paid a flat rate, he or she may have a
bias towards giving the client canned advice in order to gain
efficiencies. That can lead to not tailoring the advice to the
specific situation because that adds (uncompensated) time to the
engagement. Additionally, there's a bias towards selling
additional services not included in the initial package. Again,
generally indifference as to whether a sale is closed on an actual
investment, or which investment actually gets chosen. The
advantage to the client is that he or she knows the cost going in.
Percent of assets under management paid annually
If a financial planner receives each year a percentage of assets
under management, he or she may have a bias towards keeping as much
under management as possible, thus leading to some bias against
using funds for other purposes (including paying down debt). This
structure may also encourage the advising of riskier ventures,
since they present the adviser with the potential for higher
compensation. Obviously, the client does have to put some assets
under management (so there is a bias to do something), but the
particular investments are a matter of indifference.
Commissions on sales
When a planner receives a commission on any product sold to the
client, this can lead to a bias towards closing the sale on a
product that will pay the adviser a commission and discouraging the
acquisition of products that won't pay this adviser a commission.
Since advice is offered as a method to encourage the client to get
moving towards a buy, these advisers tend to be rather thorough in
raising issues that relate to their products (finding needs). Will
tend to have a bias to be less thorough in raising issues for which
the solution doesn't involve their product (so in estate planning
there will be lots of talk about ILITs or CRUTs, but little talk
about FLPs, AB trusts, etc.). A practical advantage is that
because the client can simply walk away, this can be the least
expensive way to get a good quick general education on the subject
at hand. Also, many investments sold by commissioned salespeople
spread the fee over a number of years, so it becomes a payment on
the installment plan that may allow some people to receive advice
they need.
Note that any competent professional will actively control for any bias
introduced by the compensation mechanism. Therefore, none of the issues
raised here represent an insurmountable flaw of a particular method of
compensation. Too often this sort of analysis can degnerate into a
mudslinging contest that suggests there is only one right way to handle
every situation, which is simply not the case.
In the end, a client of a financial planner should ask/recognize the
ways by which the planner gets paid, and use that information to note
any bias that might be present in the advice given.
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Financial Planning - Estate Planning Checkup
Last-Revised: 20 June 1999
Contributed-By: Nolo Press
This article is copyright © Nolo Press 1999 and was reprinted with
specific permission. For more great, free information about legal
matters, visit their website:
http://www.nolo.com
Lots of Americans haven't made even a simple will, to say nothing of a
more comprehensive plan to avoid probate or save on estate taxes. And
even those who have thought about what should happen to their property
when they eventually shuffle off to Nirvana haven't updated their plan
in many years. We're not going to nag, but we are going to chime in
with a few suggestions as to what your estate plan should look like. Oh
yes, in case you're new to this area, estate planning is simply a fancy
term for the process of arranging for what will happen to your property
(estate) if a particularly large and lethal brick falls on your head.
Depending on your age, health, wealth and innate level of cautiousness,
you may not need to do much at all in the way of estate planning. And
even if you do decide you need a will or a trust, you probably won't
need a lawyer. Especially if you aren't dripping with Picassos or fat
investment accounts, it is easy and safe to prepare most basic estate
planning documents yourself. Just learn what you're doing by using a
good self-help book or piece of software.
We've arranged our tips by some broad categories of family situation and
age. As they say, check all that apply. But keep in mind that age is
an imprecise proxy for life expectancy, which is affected by all sorts
of other factors--heavy smoking while participating in extreme sports
and driving a motorcycle, for example. It's up to you to add or
subtract a few years, based on your health and lifestyle.
You're 25 and Single
What are you doing reading about estate planning? You're supposed
to be surfing the Net or dancing until dawn. But you might as well
keep reading; this won't take long.
At your age, there's not much point in putting a lot of energy into
estate planning. Unless your lifestyle is unusually risky or you
have a serious illness, you're very unlikely to die for a long,
long time.
If you're an uncommonly rich 25-year-old, though, write a will.
(Bricks can fall on anyone.) That way you can leave your
possessions to any recipient you choose--your boyfriend, your
favorite cause, the nephew who thinks you're totally cool. If you
don't write a will, whatever wealth you leave behind will probably
go to your parents. Think about it.
You're Paired Up, But Not Married
If you've got a life partner but no marriage certificate, a will is
almost a must-have document. Without a will, state law will
dictate where your property goes after your death, and no state
gives anything to an unmarried partner. Instead, your closest
relatives would inherit everything.
Other options to make sure that your partner isn't left out in the
cold after your death is to own big-ticket items, such as houses
and cars, together in "joint tenancy" with right of survivorship.
Then, when one of you dies, the survivor will automatically own
100% of the property.
You Have Young Children
Having children complicates life--but then, you already know that.
Estate planning is no exception. Here's what to think about.
First, write a will. Nothing fancy--just a document that leaves
your property to whomever you choose and names a guardian for your
children. The guardian will take over if both you and the other
parent are unavailable. That's an unlikely situation, but one
that's worth addressing just in case. If you fail to name a
guardian, a court will appoint someone--possibly one of your
parents.
The other big reason to write a will is that if you don't, some of
your property may go not to your spouse, but directly to your
children. When given a choice, most people prefer that the money
go to their spouse, who will use it for the kids. The problem with
the children inheriting directly is that the surviving parent may
need to get court permission to handle the money--a waste of time
and money in most families.
Second, think about buying life insurance so the other parent will
be able to replace your earnings if that damn brick chooses you.
Term life insurance is relatively cheap, especially if you're young
and don't smoke. You can shop for the best bargain by consulting
free services that compare the rates of lots of companies. Look
for their ads in personal finance magazines.
You're Middle-Aged and Know the Names of at Least Three Mutual Funds
If you've made it to a comfortable time in life--you've accumulated
some material wealth and enough wisdom to let you know that other
things matter, too--you will probably want to take some time to
reflect on what you will eventually leave behind.
But given that you may well live another 30 or 40 years, there is
no need to obsess about it. Chances are your conclusions will be
different in ten or 20 years, and your estate plan will change
accordingly.
To save your family the cost (and hassles) of probate court
proceedings after your death, think about creating a revocable
living trust. It's hardly more trouble than writing a will, and
lets everything go directly to your heirs after your death, without
taking a circuitous and expensive detour through probate court.
While you're alive, the trust has no effect, and you can revoke it
or change its terms at any time. But after your death, the person
you chose to be your "successor trustee" takes control of trust
property and transfers it according to the directions you left in
the trust document. It's quick and simple.
There are other, even easier ways to avoid probate: you can turn
any bank account into a "payable-on-death" account simply by
signing a form (the bank will supply it) and naming someone to
inherit whatever funds are in the account at your death. You can
do the same thing, in 29 states, with securities. (Ask your broker
if your state has adopted a law called the Uniform
Transfer-on-Death Securities Registration Act.)
If you have enough property to worry about federal estate taxes,
think about a tax-avoidance trust as well. Currently, estates
worth more than $650,000 are taxed; that amount will increase to $1
million by 2006. Most estates are never subject to tax, but if
estate tax does take a bite, it can be a big one. Tax rates now
start at 37% and rise to 55% for estates worth more than $3
million.
One way to reduce estate tax is to give away property before your
death. After all, if you don't own it, it can't be taxed. But in
2002, gifts larger than $11,000 per year per recipient are subject
to gift tax, which applies at the same rates as does estate tax.
Still, an annual gifting plan can reduce the size of even a big
estate, especially if you have a covey of kids and grandkids.
Gifts to your spouse (as long as he or she is a U.S. citizen),
gifts that directly pay tuition or medical bills, or gifts to a
tax-exempt organization are exempt from gift tax.
Another way to cut taxes is to create certain kinds of trusts. The
most common, the AB trust, is one that couples use. Each spouse
leaves property to their children--with the crucial condition that
the surviving spouse has the right to use the income that property
produces for as long as he or she lives. In some circumstances,
the surviving spouse may even be able to spend principal. By 2006,
an AB trust will shield up to $2 million from estate tax.
Charitable trusts, which involve making a gift to a charity and
getting some payments back, can also save on both estate and income
tax. There are many other varieties of trusts; learn about them on
your own, and then have an experienced estate planning lawyer draw
up the documents you decide on.
You're Elderly or Ill
Now is the time to take concrete steps to establish an estate plan
pronto. It's also a good idea to think about what could happen
before your death, if you become seriously ill and unable to handle
your own affairs.
First, the basics: Consider a probate-avoidance living trust and,
if you're concerned about estate taxes, a tax-saving trust. (These
devices are discussed just above.) Write a will, or update an old
one.
Then, although no one wants to do it, take a minute to think about
the possibility that at some time, you might become incapacitated
and unable to handle day-to-day financial matters or make
healthcare decisions. If you don't do anything to prepare for this
unpleasant possibility, a judge may have to appoint someone to make
these decisions for you. No one wants a court's intervention in
such personal matters, but someone must have legal authority to act
on your behalf.
You can choose that person yourself, and give him or her legal
authority to act for you, by creating documents called durable
powers of attorney. You'll need one for your financial matters and
one for healthcare. (Some states allow the two to be combined, but
it's usually not a good idea. They're used in completely different
situations.) You choose someone you trust to act for you (called
your attorney-in-fact) and spell out his or her authority. If you
wish, you can even state that the document won't have any effect
unless and until you become incapacitated. Once signed and
notarized, it's legally valid, and your mind can be at ease.
--------------------Check
http://invest-faq.com/ for updates------------------
Subject: Information Sources - Books
Last-Revised: 16 Jul 2001
Contributed-By: Chris Lott ( contact me )
This article offers a large list of books about investing and personal
finance, divided into four sections: books for beginners, books for
experienced investors, books for professional traders and speculators,
and finally books that I call war stories - insider's tales about the
world of finance. The lists are sorted by the author's last name within
each section.
Amazon
recommends: [IMAGE]
You can buy books right from here! Right now! Send a gift to someone who
has one of these books on their wish list! But enough hype. I've
enrolled as an Amazon.com associate, so if you buy any of the books that
are listed here from Amazon.com by using the links on this page, I get a
small referral fee. I've tried to find paperback (i.e., cheap) editions
of all the books for these links, but please let me know if I missed
one.
The best thing about the Amazon site is that each book listing includes
capsule summaries and reviews contributed by readers, so you might want
to click on the links to check out each book.
Featured Author for Beginners: Eric Tyson
Here are three books by Eric Tyson that are part of the "..for Dummies"
series. Readers praise his writing for its practical advice,
objectivity, and gentle humor. These books offer a great way to start
learning about personal finance and investing. Amazon sells these
titles for about $20 each including the shipping charges.
* Eric Tyson
Investing for Dummies (out of print, but available used)
* Eric Tyson and James C. Collins
Mutual Funds for Dummies
* Eric Tyson
Personal Finance for Dummies
Books for beginning investors
These books concentrate on personal finance, budgeting, and also offer
some introductory material on basic investment strategies.
* Barbara Apostolou, Nicholas G. Apostolou
Keys to Investing in Common Stocks (Barron's Business Keys)
* Ginger Applegarth
Wake Up and Smell the Money
* Janet Bamford, Jeff Blyskal, Emily Card, and Aileen Jacobson
The Consumer Reports Money Book: How to Get It, Save It, and Spend
It Wisely (3rd edn)
* Wayne G. Bogosian and Dee Lee
The Complete Idiot's Guide to 401(k) Plans
* Samuel Case
The First Book of Investing: The Absolute Beginner's Guide to
Building Wealth Safely
* David Chilton
The Wealthy Barber
* George S. Clason
The Richest Man in Babylon
* Jonathan Clements
25 Myths You'Ve Got to Avoid If You Want to Manage Your Money
Right: The New Rules for Financial Success
* John Downes and Jordan Elliot Goodman
Dictionary of Finance and Investment Terms
* Ric Edelman
The Truth About Money: Because Money Doesn't Come With Instructions
(2nd edition)
* Louis Engel
How to Buy Stocks
* David Gardner and Tom Gardner
You Have More Than You Think: The Motley Fool Guide to Investing
What You Have
* Alvin Hall
Getting Started in Stocks (3rd edn.)
* Ken Kurson
The Green Magazine Guide to Personal Finance: A No B.S. Book for
Your Twenties and Thirties
* Barbara Loos
I Haven't Saved a Dime, Now What?!
* James Lowell
Investing from Scratch: A Handbook for the Young Investor
* Peter Lynch and John Rothchild
Learn to Earn: A Beginner's Guide to the Basics of Investing and
Business
* Dale C. Maley
Index Mutual Funds: How to Simplify Your Financial Life and Beat
the Pros
* Kenneth M. Morris and Alan M. Siegel
The Wall Street Journal Guide to Understanding Money and Investing
* Kenneth M. Morris and Alan M. Siegel
The Wall Street Journal Guide to Understanding Personal Finance
* Kenneth M. Morris, Alan M. Siegel, and Virginia B. Morris
The Wall Street Journal Guide to Planning Your Financial Future
* W. Patrick Naylor
10 Steps to Financial Success: A Beginner's Guide to Saving and
Investing
* Suze Orman
The 9 Steps to Financial Freedom
* Kenan Pollack and Eric Heighberger
The Real Life Investing Guide
* Jonathan D. Pond
4 Easy Steps to Successful Investing
* Jane Bryant Quinn
Making the Most of Your Money
* Claude Rosenberg
Stock Market Primer
* John Rothchild
A Fool and His Money: The Odyssey of an Average Investor
* Alfred V. Scillitani
Basic Investing Guide For The New Investor
* Kathleen Sindell
Investing Online for Dummies (3rd edn.)
* Andrew Tobias
The Only Investment Guide You'll Ever Need
* Eric Tyson
Investing for Dummies
* Eric Tyson and James C. Collins
Mutual Funds for Dummies
* Eric Tyson
Personal Finance for Dummies
* Diane Vujovich
10 Minute Guide to the Stock Market
Books for intermediate investors
These books assume you're comfortable with the basics of stocks, mutual
funds, bonds, and other securities. They offer many investment
strategies: what to buy, what to sell, and when to do so.
* Ted Allrich and William O'Neil
The On-Line Investor: How to Find the Best Stocks Using Your
Computer
* Frank Armstrong
Investment Strategies for the 21st Century
This book is available from the author's web site at no charge,
although registration is required.
* Peter Bernstein
Against the Gods: The Remarkable Story of Risk
* Peter Bernstein
Capital Ideas: The Improbable Origins of Modern Wall Street
* John C. Bogle
Bogle on Mutual Funds
* John C. Bogle
Common Sense on Mutual Funds: New Imperatives for the Intelligent
Investor
* James W. Broadfoot
Investing in Emerging Growth Stocks
* Mary Buffett and David Clark
Buffettology: The Previously Unexplained Techniques That Have Made
Warren Buffett the World's Most Famous Investor
* Frank Cappiello
New Guide to Finding the Next Superstock
* Charles B. Carlson
Buying Stocks Without a Broker
* Samuel Case
Big Profits from Small Stocks: How to Grow Your Investment
Portfolio by Investing in Small Cap Companies
* Burton Crane
The Sophisticated Investor
* John M. Dalton
How the Stock Market Works
* Nicolas Darvas
How I Made 2,000,000 in the Stock Market
* William Donoghue
Mutual Fund Superstars
* David N. Dreman
Contrarian Investment Strategies: The Next Generation
* Stephen Eckett
Investing Online: Dealing in Global Markets on the Internet
* Kenneth Fisher
Super Stocks
* Norman G. Fosback
Stock Market Logic
* David Gardner and Tom Gardner
The Motley Fool Investment Workbook
* David Gardner and Tom Gardner
The Motley Fool Investment Guide: How the Fool Beats Wall Street's
Wise Men and How You Can Too
* Gary Gastineau
The Stock Options Manual
* Michael Gianturco
How to Buy Technology Stocks
* Benjamin Graham and Warren E. Buffett
The Intelligent Investor: A Book of Practical Counsel
* Christopher Graja and Elizabeth Ungar
Investing in Small-Cap Stocks
* William Greider
Secrets of the Temple: How the Federal Reserve Runs the Country
* C. Colburn Hardy
The Fact$ of Life
* Peter I. Hupalo
Becoming an Investor: Building Wealth by Investing in Stocks,
Bonds, and Mutual Funds
* Investor's Business Daily
Investor's Business Daily Guide to the Markets
* David Kansas and James Cramer
The Street.Com Guide to Smart Investing in the Internet Era
* Harvey C. Knowles and Damon H. Petty
The Dividend Investor
* Robert Lichello
How to Make $1,000,000 in the Stock Market - Automatically
* Jeffrey B. Little and Lucien Rhodes
Understanding Wall Street
* Gerald M. Loeb
The Battle for Investment Survival
* Peter Lynch and John Rothchild
Beating the Street
* Peter Lynch and John Rothchild
One up on Wall Street also available: audio cassette edn.
* Burton Malkiel
A Random Walk Down Wall Street
This is a classic, and offers a highly readable argument for index
funds (also known as modern portfolio theory).
* Geoffrey A. Moore, Paul Johnson, and Tom Kippola
The Gorilla Game: An Investor's Guide to Picking Winners in High
Technology
* William J. O'Neil
How to Make Money in Stocks: A Winning System in Good Times or Bad
* James O'Shaughnessy
How to Retire Rich: Time-Tested Strategies to Beat the Market and
Retire in Style
* James P. O'Shaughnessy
Invest Like the Best: Using Your Computer to Unlock the Secrets of
the Top Money Managers
* James P. O'Shaughnessy
What Works on Wall Street: A Guide to the Best-Performing
Investment Strategies of All Time
* Carl H. Reinhardt, Alan B. Werba, and John J. Bowen
The Prudent Investor's Guide to Beating the Market
* Hildy Richelson and Stan Richelson
Straight Talk about Bonds and Bond Funds
* L. Louis Rukeyser
How to Make Money in the Stock Market
* Terry Savage
New Money Strategies for the 1990's
* Charles Schwab
How to be Your Own Stockbroker
* Dhun H. Sethna and William O'Neil
Investing Smart: How to Pick Winning Stocks With Investor's
Business Daily
* Robert Sheard
The Unemotional Investor: Simple Systems for Beating the Market
* Jeremy J. Siegel
Stocks for the Long Run
* Michael Sincere and Deron Wagner
The Long-Term Day Trader
* John A. Tracy
How to Read a Financial Report
* John Train
New Money Masters
* Venita Vancaspel
Money Dynamics for the 1990s
* John G. Wells
Kiss Your Stockbroker Goodbye: A Guide to Independent Investing
* Martin E. Zweig and Morrie Goldfischer
Martin Zweig's Winning on Wall Street (revised and updated)
Books for expert investors, especially concerning technical analysis
These books are aimed at people who have a solid understanding of
finance and/or trade for a living. There are quite a few on technical
analysis for the "chartists" out there.
* Steven B. Achelis
Technical Analysis from A to Z
* Nicholas G. Apostolou
Keys to Investing in Options and Futures
* Robert C. Beckman
Elliott Wave Explained: A Real-World Guide to Predicting and
Profiting from Market Turns
* Jake Bernstein
The Compleat Day Trader: Trading Systems, Strategies, Timing
Indicators, and Analytical Methods
* Peter Bernstein (ed.)
The Portable MBA in Investment
* Tushar S. Chande and Stanley Kroll
The New Technical Trader: Boost Your Profit by Plugging into the
Latest Indicators
* Robert W. Colby and Thomas A. Meyers
Encyclopedia of Technical Market Indicators
* John C. Cox and Mark Rubenstein
Options Markets
* Thomas R. Demark
New Market Timing Techniques: Innovative Studies in Market Rhythm
and Price Exhaustion
* Mark Douglas
The Disciplined Trader
* Robert D. Edwards and John Magee
Technical Analysis of Stock Trends
* Alexander Elder
Trading for a Living: Psychology, Trading Tactics, Money Management
* Marc Friedfertig and George West
The Electronic Day Trader
* A. J. Frost, Robert J. Prechter, and Robert R. Prechter
Elliott Wave Principle: Key to Market Behavior
Special offer! I'll sell you a brand-new copy of the 20th
Anniversary Edition of the Elliott Wave Principle for just $15
including shipping in the US! Contact me for more information.
* Benjamin Graham and David L. Dodd
Security Analysis
* John C. Hull
Options, Futures, and Other Derivatives
* Jonathan E. Ingersoll
Theory of Financial Decision Making
* R. A. Jarrow
Modelling Fixed Income Securities and Interest Rate Options
* William L. Jiler
How Charts Can Help You in the Stock Market
* Jeffrey Katz and Donna L. McCormick
The Encyclopedia of Trading Strategies
* Charles Lebeau and David W. Lucas
Technical Traders Guide to Computer Analysis of the Futures Market
* John F. Magee
Analyzing Bar Charts for Profit
* Lawrence G. McMillan
Options as a Strategic Investment
* Robert Merton
Continuous Time Finance
* John J. Murphy
Technical Analysis of the Futures Markets
* John J. Murphy
Study Guide for Technical Analysis of the Futures Markets: A
Self-Training Manual
* Sheldon Natenberg
Option Volatility and Pricing: Advanced Trading Strategies and
Techniques
* Robert Pardo
Design, Testing, and Optimization of Trading Systems
* Robert R. Prechter and R. N. Elliott
R. N. Elliott's Masterworks: The Definitive Collection
* Martin J. Pring
Martin Pring's Introduction to Technical Analysis
* Martin J. Pring
Technical Analysis Explained
* Peter Ritchken
Options: Theory, Strategy, and Applications
* Robert P. Rotella
The Elements of Successful Trading
* William F. Sharpe, Gordon J. Alexander, and Jeffery V. Bailey
Investments
* Clifford Sherry
The Mathematics of Technical Analysis
* Victor Sperandeo
Trader Vic II : Principles of Professional Speculation
* Robert A. Taggart
Quantitative Analysis for Investment Management
* Nassim Taleb
Dynamic Hedging: Managing Vanilla and Exotic Options
* Michael P. Turner
Day Trading into the Millennium
* Stan Weinstein
Stan Weinstein's Secrets for Profiting in Bull and Bear Markets
Analysis, commentary, and war stories about investments
These books offer analysis, commentary, and war stories from finance
insiders about the trading and investment world. They probably won't
help you pick stocks, but they're fun to read if you're interested in
finance and markets.
* Po Bronson
Bombardiers
* Connie Bruck
The Predators' Ball: The Inside Story of Drexel Burnham and the
Rise of the Junk Bond Raiders
* Bryan Burrough and John Helyar
Barbarians at the Gate: The Fall of RJR Nabisco
* Daniel Fischel
Payback: The Conspiracy to Destroy Michael Milken and His Financial
Revolution
* Edwin Lefevre
Reminiscences of a Stock Operator
* Michael Lewis
Liar's Poker: Rising Through the Wreckage on Wall Street
* Charles MacKay, Josef De La Vega, and Martin S. Fridson
Extraordinary Popular Delusions and the Madness of Crowds and
Confusion De Confusiones
* Victor Niederhoffer
The Education of a Speculator
* Jim Rogers
Investment Biker: Around the World with Jim Rogers
* Robert J. Shiller
Irrational Exuberance
* James B. Stewart
Den of Thieves If you can't find what you're looking for on
Amazon.Com, you might check out The Trader's Library of Columbia, MD.
They maintain a web site that has over 600 investment titles.
http://www.traderslibrary.com
Those who are just learning about the stock market may wish to have a
look at the article in the FAQ with advice for beginners .
--------------------Check
http://invest-faq.com/ for updates------------------
Compilation Copyright (c) 2002 by Christopher Lott.
