A company’s market capitalization (commonly shortened to “cap”) is found by multiplying the current share price by the number of shares outstanding.
Market capitalization is useful in comparing companies of similar size.
It is also used as a tool by mutual funds when determining investment style.
So what are the different market capitalization segments? (more…)
Most investors trade in shares of individual companies.
The main method for small investors (i.e. you and me) is to buy and sell shares on the open market through the use of a brokerage account.
However, you can invest in public companies using other means as well. (more…)
Many investors will go their entire lives without purchasing individual bonds, preferred shares, or even cash equivalents. Instead, they will utilize funds for these asset classes.
Most, if not all investors though, will buy and sell common shares of individual companies.
I am not sure that buying individual stocks is the best investment strategy, but almost all of you will trade specific stocks during your life.
So we will spend some time reviewing common stock.
Today we will look at a few key characteristics of common shares. (more…)
Originally, I intended to discuss considerations when investing in fixed income.
But I decided to go skip that for now and finish up with our discussion of asset classes.
With apologies, here is a look at equities.
Equity is the final major investment category, along with cash equivalents and fixed income.
Today we will review the concept of equity, in general and in relation to companies. (more…)
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