By: Michael Hehn
Unlike many other forms of speculation, investing can actually be fun and it is a great way to plan for your family's financial future. Investing is a good way to make money and whether it is in stocks, shares, online, real estate, finance, bonds, or mutual funds, there are a huge range of areas that can be used. This is probably the best way that any individual can plan to look after their family in future years. Please use the details supplied in this article as the basis for further research because as you would expect the whole area is extremely big.
The stock market is a great place to make money, and if you intend on doing this with stocks and mutual funds, it is highly recommended that you first carry out some research on the companies you wish to invest in. Although the stock market is a great place to make money, there is also a degree of risk involved. Not a place for short term financial gains, real estate is for people who are looking into the future where huge amounts of money can be amassed. Remodeling a home that you have bought inexpensively can be a great way to build up funds very quickly but be warned this does require work as well but the money gained can be put into another project almost immediately.
Before considering this option carry out some research because there is more involved than has been mentioned here; something that does is not so much of a problem with the next area to be looked at. Probably the fastest growing way is through trading online and it's amazing how easily you can work your finances online, and make money without even leaving the house. Using your computer you can research the companies that are offering shares and have a good idea of their performance before you make a decision to invest in them. While many people make a decent profit doing this you must be disciplined in your approach as it is easy to let it start ruling your life and wallet.
Investing requires knowledge gained from research and training so if you are an impatient person this might not be the way for you to make money. Whatever field you find most interesting, the key to long term success is research, plain and simple. There are many websites that can give you advice on investment whether online or not, plus forums with people that can tell you about their experiences first hand. Enjoy the investing you do but remember it has a serious side that doesn't take prisoners; this is why it is so important to learn the game rules before you play.
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Michael Hehn is the webmaster of http://thecollectiblessite.com/, a site that offers a wide range of useful and helpful information about collectibles for love and money. Visit his site for more free tips to choose the collecting techniques for you and your family.
Tuesday, September 30, 2008
Becoming a Professional Investor in 5 Easy Steps
By: Dan O'Connor
The late Napoleon Hill noted in his timeless classic, Think and Grow Rich!, that in order to achieve success in anything you want you'll need to acquire specialized knowledge. Becoming a professional real estate investor takes a combination of specialized knowledge and general knowledge to skyrocket your success.
Where Do You Search?
There is plenty of information which can be gathered from many sources such as the internet, various home study courses, your local library or by learning from an experienced mentor. There are countless courses and training sessions available and literally hundreds of books have been written about the subject.
Realize that many roads that can lead to success, but only one is right for you. You must decide which path it is going to be which will lead you to become a professional investor.
The First Step -
Along the way to building your education, I suggest that you don't quit your day job until you are making at least the same money investing in your spare time as you are presently earning at your current full time job. This is the first piece of advice anyone should give the new investor.
One reason is that you'll need working capital to make deals happen and to cover any necessary holding costs until your deal sells and you have cash in your pocket. I've seen countless would be investors fall out of the race before they even got started because they believed all of the guru hype about making a million dollars overnight.
Infomercial gurus are always talking about no money down deals but true no money down deals take specialized knowledge to make happen and aren't as common as all of the so-called gurus would lead you to believe. There are always some sort of holding costs, closing costs or points, mortgage insurance and title insurance, to pay.
As your education advances you'll become more in tune with what strategies to use and when to use them. Don't worry about right now. You didn't learn everything there is to know about your present occupation in a couple of hours so understand that advancing through the levels of real estate investing takes a little time.
Easy Does It! - Step Two
The next step to success in becoming a professional investor is getting to know your local market place. Real estate markets can vary from state to state and city to city. You'll want to know what is going on in your area so you can make deals happen quickly and know what it will take to get them sold and get a hefty check in your pocket as a result.
You'll also need to know who your target buyers are going to be so you'll never be scrambling to sell your deals when the time comes. For example, should you sell the conventional way using a real estate agent or sell the property yourself using some type of owner financing?
There's A Law For That? - Step Three
You'd better believe there are laws governing what real estate investors can and can't do, especially when dealing with distressed sellers. You need to have a basic understanding of the laws that govern your area, not some other state. No need to panic, though. Everything you'll need to know is easily found out as you add an experienced real estate attorney to your team.
Take That To The Bank - Step Four
You'll need to learn property values for any given neighborhood you choose to work in. Determine how much the value of the homes have gone up or down by accessing your county assessor's website (or in person) for sales history of a target property, build a relationship with several real estate agents who understand what exactly you are looking for in regard to potential deals and get educated on the distressed real estate market for your area.
All The Parts Create The Whole - Step Five
Part of your team of professionals will include a lender or mortgage broker (preferably several). Become friends with your lenders because you'll want to be able to call and talk to a loan officer or mortgage broker about a potential investment as the need arises.
Finance companies are becoming very particular about who they deal with and how much they will loan due to the recent sub prime lending meltdown as well as several of the major lenders declaring bankruptcy or going through some other restructuring .
The mortgage crisis of 2007-2008 has put a LOT in a crunch situation. This does not have to affect you if you know who to talk to lenders, have reasonably good credit scores and what lending requirements they'll need.
Of course, if you plan to use your own cash or credit, getting pre-approval for a loan can speed up closings. This is something you will need in order to not have your profits reduced by unforeseen expenses.
An experienced broker or lender who will tell you whether or not a deal will hold until closing or fall apart in front of your face is crucial to your success as well as peace of mind.
Professional investors do take on partners for joint investment ventures. I still do so from time to time, depending on how many deals I have in play at any one time and how much cash I have in circulation.
This practice is acceptable when taking a calculated risk on a large commercial property or exclusive home. Just remember that if you're going to do a joint venture with someone, be sure to partner with someone who brings something to the table that you don't have, such as money or experience.
The Sky Is The Limit!
Always be open to learning new strategies and tactics as well as modifying what you may already know to ensure that you keep a competitive edge over other investors in your area.
Learn as much as you can and then take action on what you learn!
Remember that knowledge is only potential power but applied knowledge is real power! Seek out specialized knowledge from someone who has already done what you want to do and the money will flow like a river.
To Summarize -
Your first deal is right around the corner if you'll follow these five easy steps:
1.Education and knowledge gathering
2.Set your (realistic) goals.
3.Learn house values in your market place.
4.Build your team of professional to help you.
5.Take massive action and find a profitable deal.
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
To discover how to create your own profitable push button house buying system that never fails and to claim your FREE video detailing how Dan O'Connor's renowned Your First Deal System will work for you - Go here now: http://www.YourFirstDeal.com
The late Napoleon Hill noted in his timeless classic, Think and Grow Rich!, that in order to achieve success in anything you want you'll need to acquire specialized knowledge. Becoming a professional real estate investor takes a combination of specialized knowledge and general knowledge to skyrocket your success.
Where Do You Search?
There is plenty of information which can be gathered from many sources such as the internet, various home study courses, your local library or by learning from an experienced mentor. There are countless courses and training sessions available and literally hundreds of books have been written about the subject.
Realize that many roads that can lead to success, but only one is right for you. You must decide which path it is going to be which will lead you to become a professional investor.
The First Step -
Along the way to building your education, I suggest that you don't quit your day job until you are making at least the same money investing in your spare time as you are presently earning at your current full time job. This is the first piece of advice anyone should give the new investor.
One reason is that you'll need working capital to make deals happen and to cover any necessary holding costs until your deal sells and you have cash in your pocket. I've seen countless would be investors fall out of the race before they even got started because they believed all of the guru hype about making a million dollars overnight.
Infomercial gurus are always talking about no money down deals but true no money down deals take specialized knowledge to make happen and aren't as common as all of the so-called gurus would lead you to believe. There are always some sort of holding costs, closing costs or points, mortgage insurance and title insurance, to pay.
As your education advances you'll become more in tune with what strategies to use and when to use them. Don't worry about right now. You didn't learn everything there is to know about your present occupation in a couple of hours so understand that advancing through the levels of real estate investing takes a little time.
Easy Does It! - Step Two
The next step to success in becoming a professional investor is getting to know your local market place. Real estate markets can vary from state to state and city to city. You'll want to know what is going on in your area so you can make deals happen quickly and know what it will take to get them sold and get a hefty check in your pocket as a result.
You'll also need to know who your target buyers are going to be so you'll never be scrambling to sell your deals when the time comes. For example, should you sell the conventional way using a real estate agent or sell the property yourself using some type of owner financing?
There's A Law For That? - Step Three
You'd better believe there are laws governing what real estate investors can and can't do, especially when dealing with distressed sellers. You need to have a basic understanding of the laws that govern your area, not some other state. No need to panic, though. Everything you'll need to know is easily found out as you add an experienced real estate attorney to your team.
Take That To The Bank - Step Four
You'll need to learn property values for any given neighborhood you choose to work in. Determine how much the value of the homes have gone up or down by accessing your county assessor's website (or in person) for sales history of a target property, build a relationship with several real estate agents who understand what exactly you are looking for in regard to potential deals and get educated on the distressed real estate market for your area.
All The Parts Create The Whole - Step Five
Part of your team of professionals will include a lender or mortgage broker (preferably several). Become friends with your lenders because you'll want to be able to call and talk to a loan officer or mortgage broker about a potential investment as the need arises.
Finance companies are becoming very particular about who they deal with and how much they will loan due to the recent sub prime lending meltdown as well as several of the major lenders declaring bankruptcy or going through some other restructuring .
The mortgage crisis of 2007-2008 has put a LOT in a crunch situation. This does not have to affect you if you know who to talk to lenders, have reasonably good credit scores and what lending requirements they'll need.
Of course, if you plan to use your own cash or credit, getting pre-approval for a loan can speed up closings. This is something you will need in order to not have your profits reduced by unforeseen expenses.
An experienced broker or lender who will tell you whether or not a deal will hold until closing or fall apart in front of your face is crucial to your success as well as peace of mind.
Professional investors do take on partners for joint investment ventures. I still do so from time to time, depending on how many deals I have in play at any one time and how much cash I have in circulation.
This practice is acceptable when taking a calculated risk on a large commercial property or exclusive home. Just remember that if you're going to do a joint venture with someone, be sure to partner with someone who brings something to the table that you don't have, such as money or experience.
The Sky Is The Limit!
Always be open to learning new strategies and tactics as well as modifying what you may already know to ensure that you keep a competitive edge over other investors in your area.
Learn as much as you can and then take action on what you learn!
Remember that knowledge is only potential power but applied knowledge is real power! Seek out specialized knowledge from someone who has already done what you want to do and the money will flow like a river.
To Summarize -
Your first deal is right around the corner if you'll follow these five easy steps:
1.Education and knowledge gathering
2.Set your (realistic) goals.
3.Learn house values in your market place.
4.Build your team of professional to help you.
5.Take massive action and find a profitable deal.
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
To discover how to create your own profitable push button house buying system that never fails and to claim your FREE video detailing how Dan O'Connor's renowned Your First Deal System will work for you - Go here now: http://www.YourFirstDeal.com
Monday, September 29, 2008
Mutual Funds-One Of The Financial World's Most Popular Investment Vehicles
By: William Smith
Mutual funds are one of the financial world's most popular investment vehicles, and for good reason.
For a relatively small investment, these funds give individual investors the ability to buy a diverse portfolio of stocks and / or other financial instruments - all in one transaction.
If you have just two or more mutual funds, chances are that you're more than adequately diversified. This means that you don't have to worry about one bad apple (i.e. Enron) destroying your entire investment account.
How Mutual Funds Work
So how do these funds work? Each fund is actively managed by a mutual funds professional. This is someone who has several years of experience analyzing and trading stocks or other securities, probably has an advanced degree, and has worked his or her way up the ladder to what is essentially the top of the money management profession.
The fund manager chooses the securities that the mutual fund owns. These funds can be composed of stocks, bonds, and / or other financial instruments.
The types and balance of securities (i.e. 60 percent stocks, 35 percent bonds, 5 percent cash / money market), and the investment objectives and strategies (i.e. aggressive growth or equity income) are listed in the mutual fund's prospectus.
This way investors know what they are getting into each time they buy new mutual funds.
Mutual funds are split into shares, just like stocks. For example, a fund may own 5,000 shares of Microsoft (MSFT); 10,000 shares of General Motors (GM); 20,000 shares of Alcoa (AA), etc., and be split into 100 million shares itself.
If the net asset value (NAV) of the shares is $1 billion, then each share of the fund would be worth $10. The fund manager buys and sells shares of stock that the fund owns - you, in turn, can buy or sell your shares of the fund, but only at the end of each trading day.
No Load Mutual Funds vs. Load Mutual Funds
So what's the catch? Well, mutual fund managers have to be compensated for their services, so they charge you a fee which is sometimes called a "load."
Essentially, you are paying them to have the heartburn and ulcers associated with watching the stock market eight hours a day, 52 weeks a year, so that you don't have to. Whether or not the fund managers earn their keep depends on how skillful they are, and how the fund's fees are structured.
Load mutual funds charge either front-end loads or back-end loads. Front-end loads charge you a percentage of your initial investment.
For example, if you invest $10,000 each into a pair of front-end load funds with loads of 3 percent and 5 percent, you will only be investing $9,700 and $9,500, respectively. How long will it take your funds to make up the $800 you've lost right off the bat?
Instead of charging you up front, back-end load funds don't charge you a load until you withdraw your money.
These funds are usually a better deal, because the size of the loads usually decreases the longer you leave your money in the fund.
For example, a back-end load fund might have a load of 7 percent if you withdraw your money the first year, with the load going down by 1 percentage point each year, and reaching 0 percent by the eighth year.
Mutual Funds - Just Say No To Your Broker; Buy Direct Instead
Typically, full-service brokers with offices on Main Street only sell front-end load funds. This is because they receive an up-front commission on the sale of these products.
Mutual funds are designed for average investors - you don't need a broker to recommend these funds for you, and you don't need to pay the extra sales charges.
There are hundreds of good, no-load funds that charge only a small annual management fee (which load mutual funds charge in addition to their loads) available directly from fund companies.
Most funds have a minimum investment of $2,500, but this can usually be waved if you commit to regular monthly investments of as little as $50.
Article Source: http://www.find-investment-advice.com
William Smith the author provides additional financial information on many subjects as well as the secret to his success in the market along with 5 Free power stock picks emailed daily so grab your Free subscription on his website at Mutual Funds (All is Free)
Mutual funds are one of the financial world's most popular investment vehicles, and for good reason.
For a relatively small investment, these funds give individual investors the ability to buy a diverse portfolio of stocks and / or other financial instruments - all in one transaction.
If you have just two or more mutual funds, chances are that you're more than adequately diversified. This means that you don't have to worry about one bad apple (i.e. Enron) destroying your entire investment account.
How Mutual Funds Work
So how do these funds work? Each fund is actively managed by a mutual funds professional. This is someone who has several years of experience analyzing and trading stocks or other securities, probably has an advanced degree, and has worked his or her way up the ladder to what is essentially the top of the money management profession.
The fund manager chooses the securities that the mutual fund owns. These funds can be composed of stocks, bonds, and / or other financial instruments.
The types and balance of securities (i.e. 60 percent stocks, 35 percent bonds, 5 percent cash / money market), and the investment objectives and strategies (i.e. aggressive growth or equity income) are listed in the mutual fund's prospectus.
This way investors know what they are getting into each time they buy new mutual funds.
Mutual funds are split into shares, just like stocks. For example, a fund may own 5,000 shares of Microsoft (MSFT); 10,000 shares of General Motors (GM); 20,000 shares of Alcoa (AA), etc., and be split into 100 million shares itself.
If the net asset value (NAV) of the shares is $1 billion, then each share of the fund would be worth $10. The fund manager buys and sells shares of stock that the fund owns - you, in turn, can buy or sell your shares of the fund, but only at the end of each trading day.
No Load Mutual Funds vs. Load Mutual Funds
So what's the catch? Well, mutual fund managers have to be compensated for their services, so they charge you a fee which is sometimes called a "load."
Essentially, you are paying them to have the heartburn and ulcers associated with watching the stock market eight hours a day, 52 weeks a year, so that you don't have to. Whether or not the fund managers earn their keep depends on how skillful they are, and how the fund's fees are structured.
Load mutual funds charge either front-end loads or back-end loads. Front-end loads charge you a percentage of your initial investment.
For example, if you invest $10,000 each into a pair of front-end load funds with loads of 3 percent and 5 percent, you will only be investing $9,700 and $9,500, respectively. How long will it take your funds to make up the $800 you've lost right off the bat?
Instead of charging you up front, back-end load funds don't charge you a load until you withdraw your money.
These funds are usually a better deal, because the size of the loads usually decreases the longer you leave your money in the fund.
For example, a back-end load fund might have a load of 7 percent if you withdraw your money the first year, with the load going down by 1 percentage point each year, and reaching 0 percent by the eighth year.
Mutual Funds - Just Say No To Your Broker; Buy Direct Instead
Typically, full-service brokers with offices on Main Street only sell front-end load funds. This is because they receive an up-front commission on the sale of these products.
Mutual funds are designed for average investors - you don't need a broker to recommend these funds for you, and you don't need to pay the extra sales charges.
There are hundreds of good, no-load funds that charge only a small annual management fee (which load mutual funds charge in addition to their loads) available directly from fund companies.
Most funds have a minimum investment of $2,500, but this can usually be waved if you commit to regular monthly investments of as little as $50.
Article Source: http://www.find-investment-advice.com
William Smith the author provides additional financial information on many subjects as well as the secret to his success in the market along with 5 Free power stock picks emailed daily so grab your Free subscription on his website at Mutual Funds (All is Free)
How to be Investor Ready
By: Len McDowall, Managing Director of Integral Capital Group
As corporate advisors, we meet with many companies who seek investment capital to help with the growth of their business. But attracting investor capital depends greatly on whether they are 'investor ready' or not.
Recently, a company in the building industry approached us to raise A$5m capital for them. They were well established and profitable and had the opportunity to expand overseas and required the funding to finance their expansion.
After a short period of due dilligence, it was apparent to us that they were far from being 'investor ready'. We prepared the following check list for them and are now working with them to implement it before we approach any investors.
The check list covers the major issues that an experienced investor will look for (and expect) in an investee company:-
Experienced and stable management team not only knowledgeable as regards to the industry and product, but capable of successfully implementing the business plan and managing the company's operations. Investors invest in management who are committed long term to the business.
Sound understanding of the industry the business is in,
Realistic investor ready business plan (featuring a detailed and realistic business strategy of current and future plans).
Realistic achievable financial forecasts and potential for high returns on investment (ROI).
Excellent business growth potential with rapidly growing markets.
A willingness to include, if required, the Investor in the management of the business
A comprehensive understanding of the customer (target market), including market size, demographics, trends, pricing strategies, accessibility, growth potential, demand for products and services, and committment to business development.
A clear idea of the valuation of the businesss, the equity available for the investor and a strategy for the exit of the investor.
Efficient internal accounting and financial systems and signed off Accountants reports are a must.
An easy to follow and manageable growth product/business strategy, combined with planned financial manageability over the period.
Ability to explain how the investment capital will be used.
Point of difference - in product, distribution, profit, returns, management, location, contacts, technology, barriers to entry, patents or other unique competitive advantages.
An understanding that attracting the right investor can take time - usually up to six months.
Approaching investors unprepared is probably the single most common reason why entrepreneurs fail to attract capital. Some investors see 10 or 20 deals a week. If your proposal does not include all of the above, chances are you won't get past first base and they are immediately onto the next deal.
However once you learn how to make your business 'investor ready' and you succeed in attracting an investor the first time, going for subsequent rounds of funding, or funding a new venture becomes much easier. Hence if you want to become a successful entrepreneur, it's worth spending the time and effort to learn how to make your company 'investor ready'.
© Len McDowall, Integral Capital Group
www.integralcapital.com.au
As corporate advisors, we meet with many companies who seek investment capital to help with the growth of their business. But attracting investor capital depends greatly on whether they are 'investor ready' or not.
Recently, a company in the building industry approached us to raise A$5m capital for them. They were well established and profitable and had the opportunity to expand overseas and required the funding to finance their expansion.
After a short period of due dilligence, it was apparent to us that they were far from being 'investor ready'. We prepared the following check list for them and are now working with them to implement it before we approach any investors.
The check list covers the major issues that an experienced investor will look for (and expect) in an investee company:-
Experienced and stable management team not only knowledgeable as regards to the industry and product, but capable of successfully implementing the business plan and managing the company's operations. Investors invest in management who are committed long term to the business.
Sound understanding of the industry the business is in,
Realistic investor ready business plan (featuring a detailed and realistic business strategy of current and future plans).
Realistic achievable financial forecasts and potential for high returns on investment (ROI).
Excellent business growth potential with rapidly growing markets.
A willingness to include, if required, the Investor in the management of the business
A comprehensive understanding of the customer (target market), including market size, demographics, trends, pricing strategies, accessibility, growth potential, demand for products and services, and committment to business development.
A clear idea of the valuation of the businesss, the equity available for the investor and a strategy for the exit of the investor.
Efficient internal accounting and financial systems and signed off Accountants reports are a must.
An easy to follow and manageable growth product/business strategy, combined with planned financial manageability over the period.
Ability to explain how the investment capital will be used.
Point of difference - in product, distribution, profit, returns, management, location, contacts, technology, barriers to entry, patents or other unique competitive advantages.
An understanding that attracting the right investor can take time - usually up to six months.
Approaching investors unprepared is probably the single most common reason why entrepreneurs fail to attract capital. Some investors see 10 or 20 deals a week. If your proposal does not include all of the above, chances are you won't get past first base and they are immediately onto the next deal.
However once you learn how to make your business 'investor ready' and you succeed in attracting an investor the first time, going for subsequent rounds of funding, or funding a new venture becomes much easier. Hence if you want to become a successful entrepreneur, it's worth spending the time and effort to learn how to make your company 'investor ready'.
© Len McDowall, Integral Capital Group
www.integralcapital.com.au
How to reduce the risk factor for the Investor
By Reuben Buchanan, Director of Integral Capital Group
Anyone who has raised or tried to raise venture capital for their business will tell you it is no easy road. There are lots of obstacles but if I had to narrow it down, I'd have to say that risk is the biggest one.
Investors have a hard time believing that the entrepreneur is going to make anything of their idea. A lot of investors are tending to lean towards established companies or listed companies because the returns are great (at the moment) and risk is much lower.
So the key is to lower the risk for the investor. This will greatly increase the chance of getting funding.
How to lower the risk factor for the Investor...
In a typical situation, the entrepreneur or promoter has had little prior experience building a successful company. If they had, they probably would not need an outside investor. It's sort of a catch 22 situation, therefore the most successful approach for start-ups is to:-
1.
Take their idea/concept as far as they can with their own funds (if possible get some sales or at least pre-commitments fo sales from worthy buyers)
2.
Raise small amounts of money from people who are close to them at a reasonable valuation (most promoters value their idea too high which is a turn off to investors). Say $10k to $20k each from a number of friends/family who are close to them and believe in the promoters vision.
3.
Use those funds to get the product into the market and get one years trading/sales behind them.
A year's trading gives them a couple of things. Firstly it proves up the business idea and demonstrates that there is a ready market for it. Secondly it proves that the promoter can start/run a business to some degree, and thirdly it gives some figures by which a basic valuation can be done from (for the next capital raising).
All of this lowers the risk for the investor, who may be asked to put up $250k or even $1m if the opportunity/technology is great.
The next round of funding may come from a wealthy individual, professional angel investor, or even early stage VC fund (the latter is the hardest to get funds from). The next investor may also take out the first couple of investors giving the first group an exit.
There are many other factors which can affect the promotor's ability to raise funds such as:-
General capital market conditions (at the moment, they are pretty good - most investors have a bit of spare money to play with.
Appetite for their particular idea (ie. anything in the green or clean energy sector is pretty hot at the moment)
The promotors ability to 'sell' their idea or concept.
The promotors track record
The investors personal situation (they may like the idea but have funds committed elsewhere or may be about to go on holiday)
Luck (promotor may by chance stumble across the right investor at the right time)
Typical criticisms of the Investor versus the Promoter/Entrepreneur...
Investor Criticisms:-
Poor investor presentation (sometimes no presentation at all)
Too early stage - still an idea on a piece of paper
Poor business planning or lack of
Business model is wrong
Promoter does not have the skills required to make it work
Idea is not scaleable - limited market opportunity
The sector is not favorable
Idea/technology is easily copied (no trade marks/patents in place)
Projections are too high
Entrepreneur Criticisms:-
Investor does not understand their idea
Investor does not get back to them with an answer
Investor wants too much of the company for their investment
Investor want control of the company (more than 15%)
Investor terms are too tough (ie. money comes with many stiff terms and conditions)
The best advice is for entrepreneurs to get as much knowledge on raising capital as possible. There are many books including many by Professor Tom McKaskill (www.tommckaskill.com). Also, get a mentor involved in your business who has a track record of raising capital and building businesses. They may not invest into your business, but knowledge is far better than capital. This is because knowledge will attract capital.
© Reuben Buchanan, Integral Capital Group
www.integralcapital.com.au
Anyone who has raised or tried to raise venture capital for their business will tell you it is no easy road. There are lots of obstacles but if I had to narrow it down, I'd have to say that risk is the biggest one.
Investors have a hard time believing that the entrepreneur is going to make anything of their idea. A lot of investors are tending to lean towards established companies or listed companies because the returns are great (at the moment) and risk is much lower.
So the key is to lower the risk for the investor. This will greatly increase the chance of getting funding.
How to lower the risk factor for the Investor...
In a typical situation, the entrepreneur or promoter has had little prior experience building a successful company. If they had, they probably would not need an outside investor. It's sort of a catch 22 situation, therefore the most successful approach for start-ups is to:-
1.
Take their idea/concept as far as they can with their own funds (if possible get some sales or at least pre-commitments fo sales from worthy buyers)
2.
Raise small amounts of money from people who are close to them at a reasonable valuation (most promoters value their idea too high which is a turn off to investors). Say $10k to $20k each from a number of friends/family who are close to them and believe in the promoters vision.
3.
Use those funds to get the product into the market and get one years trading/sales behind them.
A year's trading gives them a couple of things. Firstly it proves up the business idea and demonstrates that there is a ready market for it. Secondly it proves that the promoter can start/run a business to some degree, and thirdly it gives some figures by which a basic valuation can be done from (for the next capital raising).
All of this lowers the risk for the investor, who may be asked to put up $250k or even $1m if the opportunity/technology is great.
The next round of funding may come from a wealthy individual, professional angel investor, or even early stage VC fund (the latter is the hardest to get funds from). The next investor may also take out the first couple of investors giving the first group an exit.
There are many other factors which can affect the promotor's ability to raise funds such as:-
General capital market conditions (at the moment, they are pretty good - most investors have a bit of spare money to play with.
Appetite for their particular idea (ie. anything in the green or clean energy sector is pretty hot at the moment)
The promotors ability to 'sell' their idea or concept.
The promotors track record
The investors personal situation (they may like the idea but have funds committed elsewhere or may be about to go on holiday)
Luck (promotor may by chance stumble across the right investor at the right time)
Typical criticisms of the Investor versus the Promoter/Entrepreneur...
Investor Criticisms:-
Poor investor presentation (sometimes no presentation at all)
Too early stage - still an idea on a piece of paper
Poor business planning or lack of
Business model is wrong
Promoter does not have the skills required to make it work
Idea is not scaleable - limited market opportunity
The sector is not favorable
Idea/technology is easily copied (no trade marks/patents in place)
Projections are too high
Entrepreneur Criticisms:-
Investor does not understand their idea
Investor does not get back to them with an answer
Investor wants too much of the company for their investment
Investor want control of the company (more than 15%)
Investor terms are too tough (ie. money comes with many stiff terms and conditions)
The best advice is for entrepreneurs to get as much knowledge on raising capital as possible. There are many books including many by Professor Tom McKaskill (www.tommckaskill.com). Also, get a mentor involved in your business who has a track record of raising capital and building businesses. They may not invest into your business, but knowledge is far better than capital. This is because knowledge will attract capital.
© Reuben Buchanan, Integral Capital Group
www.integralcapital.com.au
Sunday, September 28, 2008
How Mutual Funds Work
By: Joseph Kenny
Mutual funds are good options for American investors to meet their financial goals. These funds offer professional management and diversification of the funds invested. Mutual funds assets in 1990-2000 rose from 1.065 trillion to a whooping 6.965 trillion dollars. 10% Americans owned funds in 1980 and by 2000, the percentage increased to 49%.
What are Mutual funds?
A company dealing in mutual funds invests the money of several investors in bonds, stocks, securities, assets and several other short-term money-market instruments. The combined holdings owned by the mutual fund are known as its portfolio.
When you invest in a mutual fund you become a shareholder of the company. Each share in a mutual fund company is the representation of he investor's proportionate ownership of the fund holdings and the income generated. You earn dividends when the mutual fund company earns a profit, however, your shares will decrease in value if it faces a loss. A professional investment manager does the buying and selling of securities for the growth of the fund.
Types of mutual funds:
Equity funds: These funds involve only common stock investments. They can earn a lot of profit, but are also very risky.
Fixed income funds: They include corporate and government securities. These funds offer fixed returns at a low risk.
Balanced funds: This is the combination of bonds and stocks with a low risk. However, the investment does not earn a lot through these funds.
How it works?
Mutual fund shares can be purchased from the company itself or a broker. There are secondary market investors also, like the New York Stock Exchange. Per share net asset value of the funds or NAV is the price that you pay for buying a mutual fund share. It also includes the shareholder fee that is imposed by the fund, at time of purchase.
The best feature of mutual funds is that these shares are redeemable. You, as an investor, can sell your shares back to the broker. In order to accommodate new investors, mutual fund companies generally create new shares and sell them. They keep selling their shares continuously till they become large.
Investment advisers act as separate entities and are responsible for managing the investment portfolio of the mutual funds. Investing in mutual funds tends to lower the risk factor because they are the result of diverse investments.
Since someone else manages your investments, you need not worry about keeping constant tabs on the investment, though a periodical check enhances your personal book of accounts. Managing funds is the full time job of the fund manager and he is responsible for the performance and health of the investment.
The rate of returns in mutual funds is based on the increase or decrease of the value, during a specific period. Returns of a fund indicate the track record. It is important to remember that the past performance cannot guarantee future results.
As in the case of any investment or business, mutual funds also have risks associated with the returns. It is essential to set your financial goals and requirements, before investing in a mutual fund.
Article Source: http://www.find-investment-advice.com
Joe Kenny writes for SelectLoans.co.uk, a bad credit loans comparison site, visit us today for information on all loan topics including debt consolidation loans and links to leading UK providers.Our Site: www.selectloans.co.uk/
Mutual funds are good options for American investors to meet their financial goals. These funds offer professional management and diversification of the funds invested. Mutual funds assets in 1990-2000 rose from 1.065 trillion to a whooping 6.965 trillion dollars. 10% Americans owned funds in 1980 and by 2000, the percentage increased to 49%.
What are Mutual funds?
A company dealing in mutual funds invests the money of several investors in bonds, stocks, securities, assets and several other short-term money-market instruments. The combined holdings owned by the mutual fund are known as its portfolio.
When you invest in a mutual fund you become a shareholder of the company. Each share in a mutual fund company is the representation of he investor's proportionate ownership of the fund holdings and the income generated. You earn dividends when the mutual fund company earns a profit, however, your shares will decrease in value if it faces a loss. A professional investment manager does the buying and selling of securities for the growth of the fund.
Types of mutual funds:
Equity funds: These funds involve only common stock investments. They can earn a lot of profit, but are also very risky.
Fixed income funds: They include corporate and government securities. These funds offer fixed returns at a low risk.
Balanced funds: This is the combination of bonds and stocks with a low risk. However, the investment does not earn a lot through these funds.
How it works?
Mutual fund shares can be purchased from the company itself or a broker. There are secondary market investors also, like the New York Stock Exchange. Per share net asset value of the funds or NAV is the price that you pay for buying a mutual fund share. It also includes the shareholder fee that is imposed by the fund, at time of purchase.
The best feature of mutual funds is that these shares are redeemable. You, as an investor, can sell your shares back to the broker. In order to accommodate new investors, mutual fund companies generally create new shares and sell them. They keep selling their shares continuously till they become large.
Investment advisers act as separate entities and are responsible for managing the investment portfolio of the mutual funds. Investing in mutual funds tends to lower the risk factor because they are the result of diverse investments.
Since someone else manages your investments, you need not worry about keeping constant tabs on the investment, though a periodical check enhances your personal book of accounts. Managing funds is the full time job of the fund manager and he is responsible for the performance and health of the investment.
The rate of returns in mutual funds is based on the increase or decrease of the value, during a specific period. Returns of a fund indicate the track record. It is important to remember that the past performance cannot guarantee future results.
As in the case of any investment or business, mutual funds also have risks associated with the returns. It is essential to set your financial goals and requirements, before investing in a mutual fund.
Article Source: http://www.find-investment-advice.com
Joe Kenny writes for SelectLoans.co.uk, a bad credit loans comparison site, visit us today for information on all loan topics including debt consolidation loans and links to leading UK providers.Our Site: www.selectloans.co.uk/
Saturday, September 27, 2008
Benefits of Investing in Mutual Funds
By: Fred Peters
The benefits of investing in mutual funds are diverse and varies based on the type of mutual funds you invest in. If you are looking for an investment vehicle to save many over the long run, mutual fund investing is a great option. Depending on your risk profile and the type of results you are looking for in an investment, there will be a fund out there that meets your needs. For long term investments, they are a great ways to save money.
Mutual funds are pooled assets that are managed by fund managers to invest in various kinds of securities. The type of mutual fund will dictate what type of investments the mutual fund managers invest in. They will have a governance model and these managers will abide by such model when investing the funds assets. When you buy into a fund, you are buying a share of the assets fund's assets. You actually become a shareholder of the mutual fund itself.
The first major benefit of investing in mutual funds is the automatic diversification they give you. Many people do not have enough money to invest in all of the securities they would like to individually purchase. They allow you to pool your money so that you can buy many more stocks and bonds. This allows you to buy shares in multiple companies as opposed to only being able to purchase one share of stock.
The second benefit of investing in mutual funds is that you get the benefit of having professional financial advisors managing your money. Few can afford to pay a financial advisor to focus solely on our money. However, when you buy into a mutual fund, these mutual fund managers will professionally manage your money.
Along with diversification and profession money management, they allow you to purchase into securities that you might not be able to afford to buy. For instance, if a certain security would have a $100,000 minimum purchase requirement, you might have trouble coming up with this $100,000. Additionally, you might not want all of this money tied up into this one security. But by pooling your money with other investors, you can now buy a portion of this security.
There are many more benefits of investing in mutual funds. But, the diversification and professional money management are huge. If you are not investing in mutual funds today, you need to consider making them part of your portfolio.
Article Source: http://www.find-investment-advice.com
The benefits of investing in mutual funds are diverse and varies based on the type of mutual funds you invest in. If you are looking for an investment vehicle to save many over the long run, mutual fund investing is a great option. Depending on your risk profile and the type of results you are looking for in an investment, there will be a fund out there that meets your needs. For long term investments, they are a great ways to save money.
Mutual funds are pooled assets that are managed by fund managers to invest in various kinds of securities. The type of mutual fund will dictate what type of investments the mutual fund managers invest in. They will have a governance model and these managers will abide by such model when investing the funds assets. When you buy into a fund, you are buying a share of the assets fund's assets. You actually become a shareholder of the mutual fund itself.
The first major benefit of investing in mutual funds is the automatic diversification they give you. Many people do not have enough money to invest in all of the securities they would like to individually purchase. They allow you to pool your money so that you can buy many more stocks and bonds. This allows you to buy shares in multiple companies as opposed to only being able to purchase one share of stock.
The second benefit of investing in mutual funds is that you get the benefit of having professional financial advisors managing your money. Few can afford to pay a financial advisor to focus solely on our money. However, when you buy into a mutual fund, these mutual fund managers will professionally manage your money.
Along with diversification and profession money management, they allow you to purchase into securities that you might not be able to afford to buy. For instance, if a certain security would have a $100,000 minimum purchase requirement, you might have trouble coming up with this $100,000. Additionally, you might not want all of this money tied up into this one security. But by pooling your money with other investors, you can now buy a portion of this security.
There are many more benefits of investing in mutual funds. But, the diversification and professional money management are huge. If you are not investing in mutual funds today, you need to consider making them part of your portfolio.
Article Source: http://www.find-investment-advice.com
Friday, September 26, 2008
Winning With Mutual Funds
By: Adam Khoo
A mutual fund (called 'unit trust' in Asia) is an investment vehicle that pools money from many individual investors. A professional fund manager invests and manages these funds into stocks, bonds and other securities.
People usually invest in mutual funds because it is offers the advantage of broad diversification (it spreads your money over tens or hundreds of stocks to reduce risk) and professional management. However, do remember that as broad diversification reduces risks, it also reduces return.
First, here is the bad news. If you speak to most people who have invested in unit trusts in Asia (especially Singapore) or in mutual funds, most would report losing money or just earning measly returns of 2%-4%. In fact, in the year 2004, it was reported in the Straits Times that 559,000 Singaporeans lost $680 million by investing their CPF in these funds. By going to the largest unit trust distributor Asia, you can easily calculate that only 6% of unit trusts beat the S&P 500 over a ten-year period. What are the chances of you placing your bet on this 6%? Chances are you would have had lower returns that the index, while still having to pay those hefty sales charges and annual management fees.
How about the US mutual fund market? On average, less than 10% of mutual funds beat the S&P 500 index each year! What's worse is that it is a different 10% each year. Less than 3% of mutual funds are able to beat the S&P 500 Index over a five to ten year period. So again, what are the chances of you beating the market through betting on the right fund? Only 3%! You have better odds at the Black Jack table. The worse thing is that the fund manager gets paid an annual management fee whether or not the fund makes money.
Why is it so difficult for most people to make money in mutual funds? There are four main reasons.
1) High Sales Charges & Management Fees
Most people buy mutual funds through banks and financial institutions at retail prices where there is a sales charge (front load) and high annual management fees (expense ratios).
In Asia, most banks & financial institutions sell unit trusts with a sales charge of 5%-6% and with annual fees of 1.5%-2%. It means that before you even begin, you are down 6.5%-8% on your investment and will be down another 1.5% every year. Your fund must outperform the S&P 500 by 6.5%-8% just to make it worth your while! Again, less than 10% of funds worldwide can achieve this every year and less than 3% can achieve this over five years.
2) Buying the Hottest Performing FundsMost people choose funds based on high short-term returns. These are the funds that are normally pushed and advertised by financial retailers. They feature impressive and enticing returns like 'This fund was up +65% in the last six months'.
The fact is that the best short-term performing funds tend to also be big losers in the subsequent years and long term. Why? Because these funds tend to be invested in hot stocks or hot sectors where the stocks have been rising rapidly and fund managers buy, riding on the momentum. That is why they post very spectacular returns. However, strong buying activity tend to push these stocks to be overvalued and sure enough, the stocks will come crashing down in the next few years. Mutual funds that consistently beat the S&P 500 tend to be invested in non-hot sectors and do not post spectacular short-term returns.
3) Limited Selection of Unit Trusts Locally
If you are in Asia, then you are normally exposed to only a limited number of unit trusts. A check with fundsupermart.com (the largest Asian unit trust distributor) shows that there are just about 300 funds available here compared to over 8,000 funds in the US market.
When I made a search on the Top Performing Fund sold locally (year 2005), I was presented with 'Fidelity America USD' with a 10-year annualized return of 11.27%. (Recall that the S&P 500 returned 12.08% a year). So, even the top-performing fund couldn't beat the S&P 500 after deducting expenses & fees!!
4) Lack of Research Knowledge, Data & Tools
The single most important reason why investors lose money in mutual fundsis because they don't have the knowledge or necessary information to search for the top 3% of consistent performing funds at the lowest costs. Investors tend to buy on the advice of their bank managers, facts from the fund fact sheet or prospectus which does not provide enough information to select the right fund.
Article Source: http://www.find-investment-advice.com
A mutual fund (called 'unit trust' in Asia) is an investment vehicle that pools money from many individual investors. A professional fund manager invests and manages these funds into stocks, bonds and other securities.
People usually invest in mutual funds because it is offers the advantage of broad diversification (it spreads your money over tens or hundreds of stocks to reduce risk) and professional management. However, do remember that as broad diversification reduces risks, it also reduces return.
First, here is the bad news. If you speak to most people who have invested in unit trusts in Asia (especially Singapore) or in mutual funds, most would report losing money or just earning measly returns of 2%-4%. In fact, in the year 2004, it was reported in the Straits Times that 559,000 Singaporeans lost $680 million by investing their CPF in these funds. By going to the largest unit trust distributor Asia, you can easily calculate that only 6% of unit trusts beat the S&P 500 over a ten-year period. What are the chances of you placing your bet on this 6%? Chances are you would have had lower returns that the index, while still having to pay those hefty sales charges and annual management fees.
How about the US mutual fund market? On average, less than 10% of mutual funds beat the S&P 500 index each year! What's worse is that it is a different 10% each year. Less than 3% of mutual funds are able to beat the S&P 500 Index over a five to ten year period. So again, what are the chances of you beating the market through betting on the right fund? Only 3%! You have better odds at the Black Jack table. The worse thing is that the fund manager gets paid an annual management fee whether or not the fund makes money.
Why is it so difficult for most people to make money in mutual funds? There are four main reasons.
1) High Sales Charges & Management Fees
Most people buy mutual funds through banks and financial institutions at retail prices where there is a sales charge (front load) and high annual management fees (expense ratios).
In Asia, most banks & financial institutions sell unit trusts with a sales charge of 5%-6% and with annual fees of 1.5%-2%. It means that before you even begin, you are down 6.5%-8% on your investment and will be down another 1.5% every year. Your fund must outperform the S&P 500 by 6.5%-8% just to make it worth your while! Again, less than 10% of funds worldwide can achieve this every year and less than 3% can achieve this over five years.
2) Buying the Hottest Performing FundsMost people choose funds based on high short-term returns. These are the funds that are normally pushed and advertised by financial retailers. They feature impressive and enticing returns like 'This fund was up +65% in the last six months'.
The fact is that the best short-term performing funds tend to also be big losers in the subsequent years and long term. Why? Because these funds tend to be invested in hot stocks or hot sectors where the stocks have been rising rapidly and fund managers buy, riding on the momentum. That is why they post very spectacular returns. However, strong buying activity tend to push these stocks to be overvalued and sure enough, the stocks will come crashing down in the next few years. Mutual funds that consistently beat the S&P 500 tend to be invested in non-hot sectors and do not post spectacular short-term returns.
3) Limited Selection of Unit Trusts Locally
If you are in Asia, then you are normally exposed to only a limited number of unit trusts. A check with fundsupermart.com (the largest Asian unit trust distributor) shows that there are just about 300 funds available here compared to over 8,000 funds in the US market.
When I made a search on the Top Performing Fund sold locally (year 2005), I was presented with 'Fidelity America USD' with a 10-year annualized return of 11.27%. (Recall that the S&P 500 returned 12.08% a year). So, even the top-performing fund couldn't beat the S&P 500 after deducting expenses & fees!!
4) Lack of Research Knowledge, Data & Tools
The single most important reason why investors lose money in mutual fundsis because they don't have the knowledge or necessary information to search for the top 3% of consistent performing funds at the lowest costs. Investors tend to buy on the advice of their bank managers, facts from the fund fact sheet or prospectus which does not provide enough information to select the right fund.
Article Source: http://www.find-investment-advice.com
Wednesday, September 24, 2008
Earnings Matter: S&P and Stock Market Investing
By: Bill Byrnes
The S&P 500 is up about 7.5% thus far this year. That's a good return for just over six months. Will it keep going up? Consider this. The earnings of the S&P 500 companies are expected to grow by about 5% in 2007, according to a leading Wall Street brokerage firm. That means if the market was fairly valued at the beginning of 2007 and there were no big changes as to how investors think about the market, the S&P should only go up by 5% in 2007. Hence, game over. Come back next year.
But wait! Let's examine each of the above assumptions. Was the S&P fairly valued at the beginning of 2007? Well, for the 12 months ended June 2007, it's up 22%, so it had a pretty good run in the second half of last year and considering that 2006 was the fourth year of the current economic expansion, it's likely the S&P was around fair value at the beginning of 2007. Okay, but doesn't the market discount the future? And aren't all the Wall Street analysts talking about 2008 earnings? Yes to both (although December 31, 2008 is 18 months away, so maybe there's some uncertainty). 2008 S&P earnings are projected to grow by 7.5%. Amazing, the same percentage the S&P is up this year. I could end this report right now but I think it's a coincidence.
I don't know how far into the future investors look or whether they're looking at 2007 or 2008 earnings. Either way, though, there's not much of a case to be made for further gains in the S&P unless theress multiple expansion. (The P/E multiple has to expand when stock prices grow faster than earnings.)
So, will P/E multiples expand and the S&P continue to go up? Depends upon what makes multiples expand. Common factors include accelerating earnings growth (I don't think 5% to 7.5% qualifies), an improving economic outlook (balance of trade, energy prices, inflation), or a reduction in interest rates. The last one's a two edge sword. If interest rates fall (the Fed cuts rates) because of declining inflation expectations, that's bullish (along with an expanding economy that's the goldilocks scenario). If the Fed cuts rates because the economy is slowing down, that's not good. A Fed cut for good reasons appears unlikely.
Thus, the S&P is likely to be flat to down over the next few months, until earnings growth is ready to take it higher.
Article Source: http://www.find-investment-advice.com
Bill Byrnes is co-founder of MUTUALdecision, a website providing mutual fund data, and the author of the MUTUALdecision Blog. He's been an investment banker with Alex. Brown & Sons and a Finance Professor at Georgetown University. He's been CEO, chairman and served on the board of directors of several public and private companies. He holds MBA and JD degrees and is a Chartered Financial Analyst with over 30 years experience in the investment industry.
The S&P 500 is up about 7.5% thus far this year. That's a good return for just over six months. Will it keep going up? Consider this. The earnings of the S&P 500 companies are expected to grow by about 5% in 2007, according to a leading Wall Street brokerage firm. That means if the market was fairly valued at the beginning of 2007 and there were no big changes as to how investors think about the market, the S&P should only go up by 5% in 2007. Hence, game over. Come back next year.
But wait! Let's examine each of the above assumptions. Was the S&P fairly valued at the beginning of 2007? Well, for the 12 months ended June 2007, it's up 22%, so it had a pretty good run in the second half of last year and considering that 2006 was the fourth year of the current economic expansion, it's likely the S&P was around fair value at the beginning of 2007. Okay, but doesn't the market discount the future? And aren't all the Wall Street analysts talking about 2008 earnings? Yes to both (although December 31, 2008 is 18 months away, so maybe there's some uncertainty). 2008 S&P earnings are projected to grow by 7.5%. Amazing, the same percentage the S&P is up this year. I could end this report right now but I think it's a coincidence.
I don't know how far into the future investors look or whether they're looking at 2007 or 2008 earnings. Either way, though, there's not much of a case to be made for further gains in the S&P unless theress multiple expansion. (The P/E multiple has to expand when stock prices grow faster than earnings.)
So, will P/E multiples expand and the S&P continue to go up? Depends upon what makes multiples expand. Common factors include accelerating earnings growth (I don't think 5% to 7.5% qualifies), an improving economic outlook (balance of trade, energy prices, inflation), or a reduction in interest rates. The last one's a two edge sword. If interest rates fall (the Fed cuts rates) because of declining inflation expectations, that's bullish (along with an expanding economy that's the goldilocks scenario). If the Fed cuts rates because the economy is slowing down, that's not good. A Fed cut for good reasons appears unlikely.
Thus, the S&P is likely to be flat to down over the next few months, until earnings growth is ready to take it higher.
Article Source: http://www.find-investment-advice.com
Bill Byrnes is co-founder of MUTUALdecision, a website providing mutual fund data, and the author of the MUTUALdecision Blog. He's been an investment banker with Alex. Brown & Sons and a Finance Professor at Georgetown University. He's been CEO, chairman and served on the board of directors of several public and private companies. He holds MBA and JD degrees and is a Chartered Financial Analyst with over 30 years experience in the investment industry.
Saturday, September 20, 2008
Steps Towards Securities Market
By: Anthony Green
The guiding objectives in the development of the government securities market have been to develop a smooth yield curve, to create a suitable benchmark for pricing of various debt instruments and to enable use of indirect instruments for the operation of monetary policy. The significant steps taken towards deepening and widening of the government securities market during 2001-02 include elongation of maturity profile of outstanding securities, development of benchmarks by consolidating new issuances in key maturities, enhancing fungibility and liquidity through consolidation by reissue of existing loans, promoting retailing of government securities and re-introduction of Floating Rate Bonds. The development of key benchmark securities in the Indian gilt market is in line with international best practices with the 10-year government security evolving as a benchmark, as in several developed countries. Primary Market The issuances of government dated securities are normally concentrated in the first half of the year. In 2001- 02, more than two thirds of the issuance was raised during the first half of the year with Rs. 28,000 crore or 24.5 per cent of total issuance raised in April 2001. To encourage retail participation, in particular amongst the mid-segment investors in the primary market for government securities, the Reserve Bank implemented a scheme of Non-Competitive Bidding with provision for allocation of up to 5 per cent of the notified amount in specified auctions of dated securities for allotment to retail investors on a non-competitive basis at the weighted average rate. The scheme was operationalised from January 14, 2002 with the auction of 15-year Government stock The Floating Rate Bond (FRB) was reintroduced on November 21, 2001 with a 5-year maturity issue for a notified amount of Rs.2000 crore. On December 5, 2001, another FRB with maturity of 8 years for notified amount of Rs.3,000 crore was auctioned. Later in July 2002, a 15 year-FRB for a notified amount of Rs.3,000 crore was floated. The interest rate on these bonds is calculated by adding a fixed spread over a variable base rate. The base rate is the average of the implicit yields arising at the immediately preceding six auctions of 364-day Treasury Bills, prior to the relative half-year coupon period. The interest rate is reset every six months. The issue of 14-day and 182-day Treasury Bills was discontinued with effect from May 14, 2001. The notified amount of 91-day Treasury Bill auctions was increased from Rs.100 crore to Rs.250 crore from May 18, 2001 and dates of payment were synchronised with the dates of payment of 364-day Treasury Bills to provide a fungible stock of Treasury Bills of varying maturities and to activate the secondary market.
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Article Source: http://www.articlesnatch.com
About the Author:Best stock recommendation, tips and different market strategies to get success in stock market. All these you will get on : http://www.5minutetrader.com/.
The guiding objectives in the development of the government securities market have been to develop a smooth yield curve, to create a suitable benchmark for pricing of various debt instruments and to enable use of indirect instruments for the operation of monetary policy. The significant steps taken towards deepening and widening of the government securities market during 2001-02 include elongation of maturity profile of outstanding securities, development of benchmarks by consolidating new issuances in key maturities, enhancing fungibility and liquidity through consolidation by reissue of existing loans, promoting retailing of government securities and re-introduction of Floating Rate Bonds. The development of key benchmark securities in the Indian gilt market is in line with international best practices with the 10-year government security evolving as a benchmark, as in several developed countries. Primary Market The issuances of government dated securities are normally concentrated in the first half of the year. In 2001- 02, more than two thirds of the issuance was raised during the first half of the year with Rs. 28,000 crore or 24.5 per cent of total issuance raised in April 2001. To encourage retail participation, in particular amongst the mid-segment investors in the primary market for government securities, the Reserve Bank implemented a scheme of Non-Competitive Bidding with provision for allocation of up to 5 per cent of the notified amount in specified auctions of dated securities for allotment to retail investors on a non-competitive basis at the weighted average rate. The scheme was operationalised from January 14, 2002 with the auction of 15-year Government stock The Floating Rate Bond (FRB) was reintroduced on November 21, 2001 with a 5-year maturity issue for a notified amount of Rs.2000 crore. On December 5, 2001, another FRB with maturity of 8 years for notified amount of Rs.3,000 crore was auctioned. Later in July 2002, a 15 year-FRB for a notified amount of Rs.3,000 crore was floated. The interest rate on these bonds is calculated by adding a fixed spread over a variable base rate. The base rate is the average of the implicit yields arising at the immediately preceding six auctions of 364-day Treasury Bills, prior to the relative half-year coupon period. The interest rate is reset every six months. The issue of 14-day and 182-day Treasury Bills was discontinued with effect from May 14, 2001. The notified amount of 91-day Treasury Bill auctions was increased from Rs.100 crore to Rs.250 crore from May 18, 2001 and dates of payment were synchronised with the dates of payment of 364-day Treasury Bills to provide a fungible stock of Treasury Bills of varying maturities and to activate the secondary market.
-->
Article Source: http://www.articlesnatch.com
About the Author:Best stock recommendation, tips and different market strategies to get success in stock market. All these you will get on : http://www.5minutetrader.com/.
Why are investors turning to Solar?
By: Chris Davidson
In the current world climate it can be hard being an investor. With financial markets in meltdown and the huge boom in property in slowdown, investors are wondering where the best place is to not only secure their money, but also to grow it too. There is one particular investment that promises much right now; renewable solar energy. In particular the Solar market which captures UV light (known as photovoltaic) as opposed to direct sunlight has seen huge growth in the last 3-5 years. An easy example of this technology is the strip on your calculator, which uses UV light to power up. So just why are investors excited by this sector? Energy production price versus Oil Firstly, solar has never been popular because it has been too expensive to produce compared to the price of oil. Russell Hasan from Altenews.com, in his “research report on Solar investment: the Dawn of Solar Power”, states that the breakeven point with Oil is around the $50 a barrel level, which means in today's marketplace Solar is now becoming a really viable option. Governments historically have been slow to subsidise, but a number of markets are now starting to grow dramatically. Feed-in tariff law Before Solar started becoming more competitive, a number of developed nations took the lead in providing subsidies for the solar industry. The 3 global market leaders are Japan, Germany and the US, with Germany in particular bringing in a law in 2004 which interested investors greatly. The Act states that any excess renewable energy that is produced must be bought back by the utilities at a set rate per Kilowatt. Solar gets a preferential rate of 47-57c/Kilowatt compared with any other source, such as wind, depending on the type of installation. As a result, it means that the owner of the solar energy generating system can create an income stream whilst also helping the environment. Similar laws are in place in other EU countries such as France, Spain, Italy and Greece. Solar is a growth industry The Solar Energy industry is one of the best performing industries of today. According to Solar Buzz, a solar research group: • Demand for solar has grown at 30% annually for the last 15 years • Solar PV installations rose by approx. 62% in 2007 compared to the previous year • Solar prices have fallen 4% on average annually over the last 15years The reasons for growth as many and varied and will be covered at length in a further article. High yielding One of the main reasons investors have started looking at solar are the high yields on offer. It is difficult to predict from each installation how much income can be generated but banks who lend to buyers are generally looking for a minimum 8-10% yield before approval. Depending on the amount of sunlight, conservatively projected gross yields in the region of 10-15% are easily achievable. High level of financing Because these investments are so secure, as discussed below, banks are prepared to lend to a high level, particularly in Germany. Anywhere in the region of 85%-90% LTV is being offered, which when compared to the average 50% LTV on property, makes interesting reading. Immediate income One of the great bonuses to Solar investing is the investor can generate income pretty much straight away. In the case that rooftop space is being sourced from them, a typical installation and finance approval period is in the region of 12 to16 weeks. Therefore, provided that rooftop space is available, a return on investment begins very quickly and reassures investors as to their decision. If this is compared to off-plan property for example, the build period can be as much as 2 to 3 years, which means it takes a lot longer for investors to start generating income and see whether the investment is working or not. Security In an age where investors are after security of their funds as much as growth rates, solar investments can be an extremely secure way to invest your money. In Germany, solar investments come with a 20 year government contract to buy back the excess you produce, and schemes along similar lines are popping up in France, Italy, Greece, Spain to name a few. Your installation can be registered independently of the property at the local land registry so if the property changes hands, the panelling system on the roof doesn't. Many other traditional investments are not working Historically, shares and property have been the main investment vehicles available, and right now it seems that these routes to profit are not working. With a lack of equity in the marketplace and the subsequent rise in commodity prices, the financial markets have become an even more volatile place to invest money. There is no doubt that huge profits can be made, particularly in the commodity sector, but the risks are far higher. In the world of property investment, there has been a huge global demand, and therefore boom for all types of investment products, from holiday homes to City buy to lets, from apart-hotels to land sub-division projects. Again there is little doubt that some of these products will pay off, but with over-supply common in many areas, returns will be seen in the long-run provided investors have chosen the right location and price point in the first place. In conclusion then, investors will be hearing much more about solar energy as an investment vehicle in the coming months and years. It is becoming cheaper to produce and has an attractive income stream, is government and bank backed which means it is secure, and it give investors peace of mind that they are contributing to the global need for energy independence from oil and long term security. Future articles will delve into this sector in more depth to provide investors with as much useful information as possible. From there we can all decide whether this is not only the next growth sector, but also if it is one of the answers to the human race's pressing energy concerns. Chris Davidson http://www.discoverandinvest.com/
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Article Source: http://www.articlesnatch.com
About the Author:http://www.discoverandinvest.com/investment_articles/why_are_investors_turning_to_solar.htm
In the current world climate it can be hard being an investor. With financial markets in meltdown and the huge boom in property in slowdown, investors are wondering where the best place is to not only secure their money, but also to grow it too. There is one particular investment that promises much right now; renewable solar energy. In particular the Solar market which captures UV light (known as photovoltaic) as opposed to direct sunlight has seen huge growth in the last 3-5 years. An easy example of this technology is the strip on your calculator, which uses UV light to power up. So just why are investors excited by this sector? Energy production price versus Oil Firstly, solar has never been popular because it has been too expensive to produce compared to the price of oil. Russell Hasan from Altenews.com, in his “research report on Solar investment: the Dawn of Solar Power”, states that the breakeven point with Oil is around the $50 a barrel level, which means in today's marketplace Solar is now becoming a really viable option. Governments historically have been slow to subsidise, but a number of markets are now starting to grow dramatically. Feed-in tariff law Before Solar started becoming more competitive, a number of developed nations took the lead in providing subsidies for the solar industry. The 3 global market leaders are Japan, Germany and the US, with Germany in particular bringing in a law in 2004 which interested investors greatly. The Act states that any excess renewable energy that is produced must be bought back by the utilities at a set rate per Kilowatt. Solar gets a preferential rate of 47-57c/Kilowatt compared with any other source, such as wind, depending on the type of installation. As a result, it means that the owner of the solar energy generating system can create an income stream whilst also helping the environment. Similar laws are in place in other EU countries such as France, Spain, Italy and Greece. Solar is a growth industry The Solar Energy industry is one of the best performing industries of today. According to Solar Buzz, a solar research group: • Demand for solar has grown at 30% annually for the last 15 years • Solar PV installations rose by approx. 62% in 2007 compared to the previous year • Solar prices have fallen 4% on average annually over the last 15years The reasons for growth as many and varied and will be covered at length in a further article. High yielding One of the main reasons investors have started looking at solar are the high yields on offer. It is difficult to predict from each installation how much income can be generated but banks who lend to buyers are generally looking for a minimum 8-10% yield before approval. Depending on the amount of sunlight, conservatively projected gross yields in the region of 10-15% are easily achievable. High level of financing Because these investments are so secure, as discussed below, banks are prepared to lend to a high level, particularly in Germany. Anywhere in the region of 85%-90% LTV is being offered, which when compared to the average 50% LTV on property, makes interesting reading. Immediate income One of the great bonuses to Solar investing is the investor can generate income pretty much straight away. In the case that rooftop space is being sourced from them, a typical installation and finance approval period is in the region of 12 to16 weeks. Therefore, provided that rooftop space is available, a return on investment begins very quickly and reassures investors as to their decision. If this is compared to off-plan property for example, the build period can be as much as 2 to 3 years, which means it takes a lot longer for investors to start generating income and see whether the investment is working or not. Security In an age where investors are after security of their funds as much as growth rates, solar investments can be an extremely secure way to invest your money. In Germany, solar investments come with a 20 year government contract to buy back the excess you produce, and schemes along similar lines are popping up in France, Italy, Greece, Spain to name a few. Your installation can be registered independently of the property at the local land registry so if the property changes hands, the panelling system on the roof doesn't. Many other traditional investments are not working Historically, shares and property have been the main investment vehicles available, and right now it seems that these routes to profit are not working. With a lack of equity in the marketplace and the subsequent rise in commodity prices, the financial markets have become an even more volatile place to invest money. There is no doubt that huge profits can be made, particularly in the commodity sector, but the risks are far higher. In the world of property investment, there has been a huge global demand, and therefore boom for all types of investment products, from holiday homes to City buy to lets, from apart-hotels to land sub-division projects. Again there is little doubt that some of these products will pay off, but with over-supply common in many areas, returns will be seen in the long-run provided investors have chosen the right location and price point in the first place. In conclusion then, investors will be hearing much more about solar energy as an investment vehicle in the coming months and years. It is becoming cheaper to produce and has an attractive income stream, is government and bank backed which means it is secure, and it give investors peace of mind that they are contributing to the global need for energy independence from oil and long term security. Future articles will delve into this sector in more depth to provide investors with as much useful information as possible. From there we can all decide whether this is not only the next growth sector, but also if it is one of the answers to the human race's pressing energy concerns. Chris Davidson http://www.discoverandinvest.com/
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Article Source: http://www.articlesnatch.com
About the Author:http://www.discoverandinvest.com/investment_articles/why_are_investors_turning_to_solar.htm
Specialist funding for the Professions sector
By: searchrankpros
Synergy Professions specialises in providing practices like yours with tailor made financial solutions, bridging the gap between you and the ever more distant banks and finance companies; to date we’ve provided over £50,000,000 of financing to businesses just like yours. With over 18 years experience within the finance industry, Synergy Professions is run by professionals who understand your market place and have access to numerous major UK and International financial institutions. This means we can ensure complete flexibility when considering your major financial decisions. Our commitment is to offer you the right solutions for your business needs. We will listen to your short and long term business plans before recommending the most appropriate financial solution for you, working alongside you as your finance partner rather than just as a funding provider. Professional clients & testimonials. Synergy Professions exclusively assists the professions sector, working on behalf of practitioners in the following sectors: * Accountants * Architects * Barristers * Chartered Surveyo * Doctors * Opticians * Finance Solicitors * Veterinary Services Synergy Professions continually strives to exceed our customers’ expectations, some remarks from satisfied customers include: "Synergy Professions consistently deliver the lowest loan rates enabling us to grow and develop the practice." PW, Solicitors "Synergy makes everything so easy and simple, it was truly hassle free." SB, Doctors. Eg. Dentist Finance "I can depend on Synergy Professions, whatever our financial need, to offer a bespoke service tailored to our business." PT, Accountants
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Article Source: http://www.articlesnatch.com
About the Author:Looking for on business funding. Synergy Professions provide specialist funding for professionals. Contact Synergy Professionals for Dentist Finance, Accountants Financial Needs, Finance Solicitors and other Professionals.
Synergy Professions specialises in providing practices like yours with tailor made financial solutions, bridging the gap between you and the ever more distant banks and finance companies; to date we’ve provided over £50,000,000 of financing to businesses just like yours. With over 18 years experience within the finance industry, Synergy Professions is run by professionals who understand your market place and have access to numerous major UK and International financial institutions. This means we can ensure complete flexibility when considering your major financial decisions. Our commitment is to offer you the right solutions for your business needs. We will listen to your short and long term business plans before recommending the most appropriate financial solution for you, working alongside you as your finance partner rather than just as a funding provider. Professional clients & testimonials. Synergy Professions exclusively assists the professions sector, working on behalf of practitioners in the following sectors: * Accountants * Architects * Barristers * Chartered Surveyo * Doctors * Opticians * Finance Solicitors * Veterinary Services Synergy Professions continually strives to exceed our customers’ expectations, some remarks from satisfied customers include: "Synergy Professions consistently deliver the lowest loan rates enabling us to grow and develop the practice." PW, Solicitors "Synergy makes everything so easy and simple, it was truly hassle free." SB, Doctors. Eg. Dentist Finance "I can depend on Synergy Professions, whatever our financial need, to offer a bespoke service tailored to our business." PT, Accountants
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Article Source: http://www.articlesnatch.com
About the Author:Looking for on business funding. Synergy Professions provide specialist funding for professionals. Contact Synergy Professionals for Dentist Finance, Accountants Financial Needs, Finance Solicitors and other Professionals.
Debt Management Services: Serve Your Cause The Best
By: David Warner
The most effective way to deal with distressing debt is debt management services. It helps you control your expenditure. To keep the debts under control you should rely more on cash transactions rather than using your credit card debts. As credit card debts carry high rate of interest, it is better not to use credit cards on a regular basis. The more you cut down your expenses, the more you save which later helps you in managing your debts in a proficient manner. For management services, you can seek assistance of financial experts. These experts will advise you to manage your debts and come out of the messy situation of your debts. At first, the expert will assess and evaluate all of your existing debts. He will then advise you to control your expenses and adhere to a single monthly plan. Later, the expert will also contact your creditors and try to negotiate on your behalf to reduce the rate of interest. Just the once the interest is lowered, your expert will suggest you the way to manage your debt and get rid of it. On lower interest rate, you can save your hard earned money. These management services make sure that you can pay off your debts in an efficient way. You can make your application for these debt management services either online or offline, processing online though is preferred. It saves a good amount of your time and energy, and later helps you make you loan approval fast. In all, debt management services provide you an affordable way to deal with your financial problems caused by distressing debt. You pay off your high interest loans through a single entity plan that lets you make the repayment on a lower rate of interest. Debt management is a process that allows you reduce your debts.
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Article Source: http://www.articlesnatch.com
About the Author:David Warner is a well known author and has been writing content for Debt Management Info. His content is worth reading as it gives you an insight about different aspects of debt management services, debt management program, debt management solution. For more information visit http://www.debtmanagementinfo.co.uk/
The most effective way to deal with distressing debt is debt management services. It helps you control your expenditure. To keep the debts under control you should rely more on cash transactions rather than using your credit card debts. As credit card debts carry high rate of interest, it is better not to use credit cards on a regular basis. The more you cut down your expenses, the more you save which later helps you in managing your debts in a proficient manner. For management services, you can seek assistance of financial experts. These experts will advise you to manage your debts and come out of the messy situation of your debts. At first, the expert will assess and evaluate all of your existing debts. He will then advise you to control your expenses and adhere to a single monthly plan. Later, the expert will also contact your creditors and try to negotiate on your behalf to reduce the rate of interest. Just the once the interest is lowered, your expert will suggest you the way to manage your debt and get rid of it. On lower interest rate, you can save your hard earned money. These management services make sure that you can pay off your debts in an efficient way. You can make your application for these debt management services either online or offline, processing online though is preferred. It saves a good amount of your time and energy, and later helps you make you loan approval fast. In all, debt management services provide you an affordable way to deal with your financial problems caused by distressing debt. You pay off your high interest loans through a single entity plan that lets you make the repayment on a lower rate of interest. Debt management is a process that allows you reduce your debts.
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Article Source: http://www.articlesnatch.com
About the Author:David Warner is a well known author and has been writing content for Debt Management Info. His content is worth reading as it gives you an insight about different aspects of debt management services, debt management program, debt management solution. For more information visit http://www.debtmanagementinfo.co.uk/
Investing in the Stock Market
By: Jake F.
You have recently decided to start investing in the stock market, but you don’t have any idea how it works, so you’re doing a lot of research, but do you know what kind of investor you are? There are a broad range of stocks available to invest in, and ideally, you want to pick the stocks that best match your investing style. What is your investing style you may ask yourself? Well, if are you interested in short-term growth with higher risks, than you may want to look at penny stocks. If you would rather not take as much of a risk, but allow your investment to grow over time, you may want to consider some type of income stock, which sometimes can even pay a dividend on the shares that you own. A dividend is a profit sharing incentive offered by some companies on the shares of their stock to help make up for the slower growth those stocks experience. If you wish, you can invest in technology stocks, such as Google, or Yahoo, hoping to be a part of the next dot-com rush by maybe finding a company that will experience some explosive growth, or you can invest in health care stocks like Johnson and Johnson. Technology and health care stocks are known as sector stocks, one of the many available investment options that are available to you as an investor. Other types of sector stocks may include Public Utilities, Mining stocks, or even Pharmaceutical stocks. You can find stocks that are cyclical in nature, their price is affected by what is happening in that industry, and if that industry is doing well as a whole, then those stocks will perform better and experience more growth, whereas if that industry is performing poorly, the stocks will reflect that and now show as much growth. The automobile industry is a good example of a cyclical investment, as consumers have more money to spend due to a good economy, they may decide to purchase a new vehicle, but when times are tough, they may choose to just repair the old vehicle. There is also another classification of stock, which goes beyond growth, income, cyclical, or sector. Here we are talking about Preferred stock and Common stock. Some of the differences between the two are that in most cases, if a dividend is offered on the stock, a preferred stock dividend is pretty constant in the amount that is paid to the investor, meaning that the payout will not rise and fall as much as the dividends that are paid out on a share of common stock, which may fluctuate higher or lower. If the company declares bankruptcy, and the assets are liquidated, those that hold preferred stock will be paid back before those that hold common stock, but in some cases, all the investors could loose their money. Picking a stock can take some time as you see, and it requires a lot of research, but one of the first steps you want to look at is what do you want to achieve, and armed with that knowledge, you will soon find an investment option in stocks that best suits your needs.
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Article Source: http://www.articlesnatch.com
About the Author:For more information on Stocks and investing in stocks, visit www.firecreeksystems.com and read about the various options that are available to you as an investor.
You have recently decided to start investing in the stock market, but you don’t have any idea how it works, so you’re doing a lot of research, but do you know what kind of investor you are? There are a broad range of stocks available to invest in, and ideally, you want to pick the stocks that best match your investing style. What is your investing style you may ask yourself? Well, if are you interested in short-term growth with higher risks, than you may want to look at penny stocks. If you would rather not take as much of a risk, but allow your investment to grow over time, you may want to consider some type of income stock, which sometimes can even pay a dividend on the shares that you own. A dividend is a profit sharing incentive offered by some companies on the shares of their stock to help make up for the slower growth those stocks experience. If you wish, you can invest in technology stocks, such as Google, or Yahoo, hoping to be a part of the next dot-com rush by maybe finding a company that will experience some explosive growth, or you can invest in health care stocks like Johnson and Johnson. Technology and health care stocks are known as sector stocks, one of the many available investment options that are available to you as an investor. Other types of sector stocks may include Public Utilities, Mining stocks, or even Pharmaceutical stocks. You can find stocks that are cyclical in nature, their price is affected by what is happening in that industry, and if that industry is doing well as a whole, then those stocks will perform better and experience more growth, whereas if that industry is performing poorly, the stocks will reflect that and now show as much growth. The automobile industry is a good example of a cyclical investment, as consumers have more money to spend due to a good economy, they may decide to purchase a new vehicle, but when times are tough, they may choose to just repair the old vehicle. There is also another classification of stock, which goes beyond growth, income, cyclical, or sector. Here we are talking about Preferred stock and Common stock. Some of the differences between the two are that in most cases, if a dividend is offered on the stock, a preferred stock dividend is pretty constant in the amount that is paid to the investor, meaning that the payout will not rise and fall as much as the dividends that are paid out on a share of common stock, which may fluctuate higher or lower. If the company declares bankruptcy, and the assets are liquidated, those that hold preferred stock will be paid back before those that hold common stock, but in some cases, all the investors could loose their money. Picking a stock can take some time as you see, and it requires a lot of research, but one of the first steps you want to look at is what do you want to achieve, and armed with that knowledge, you will soon find an investment option in stocks that best suits your needs.
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Article Source: http://www.articlesnatch.com
About the Author:For more information on Stocks and investing in stocks, visit www.firecreeksystems.com and read about the various options that are available to you as an investor.
Is Flipping a Good Approach to Real Estate Investing?
By: Alexandria Anderson
Flipping, or the quick reselling of a property that one has just purchased, is a controversial practice. That is because individuals attempting to flip have often engaged in some very bad practices and ended up angering both the buyer and the seller. See, the flipper is neither the buyer nor the seller, though he may play the part of both. Some particularly gutsy flippers talk to the owner of a property and a prospective buyer. Now this buyer thinks the flipper owns the property and gives him the money for it. The flipper then takes the asking price out of this money and gives it to the seller, pocketing the difference. He has never invested a penny of his own money. What he has done, effectively, is sold property that isn't even his. If it goes well, the true buyer and seller never find out about each other. If it goes badly and they do find out about each other, then there will be some very awkward moments to say the least. The buyer is angry because he feels if the flipper was able to sell his property at $110,000, when is only asking for $90,000, then he is the one who should benefit from the inflated price. The buyer, on the other hand, is angry that he is being asked by this third party for $110,000 when he could have gotten the property for only $90,000. The clumsy flipper potentially angers everyone, and that is not what should happen in a business deal. Everyone should walk away from a deal thinking that he got just what he needed from the exchange. No one should feel as though someone is trying to swindle them. That doesn't mean that there isn't a legitimate way to flip properties, a way that doesn't leave everyone's feathers ruffled. According to Ken McElroy, author of “The ABCs of Real Estate Investing,” there are corporations that do it, and that is pretty much what it takes. Corporations that flip buy a property from a seller and then go on a whirlwind communications campaign to everyone on its list. This costs money, but the corporation has access to so many people that it isn't long before someone buys the property. It may even happen that very day. That is flipping, but both the buyer and the seller come out of the deal happy. The company doesn't have to keep the buyer and seller from finding out about each other. It is amazing how many people are out there trying to be a middleman between buyer and seller, who are trying to sell property that they haven't actually purchased. If the investor follows one simple rule—actually buy the property before you try to sell it—then he can avoid a lot of nastiness. It is amazing how many people are out there trying to be slick and sell before they buy. Each investor should ask himself which is the best approach to real estate for him, personally. Trying to be a lone flipper is an approach that is rife with limitations, and it doesn't allow for the development of a property into something that is genuinely worth more than the investor paid for it. It doesn't allow the flipper to actually be an asset to the community, but does allow him to artificially inflate prices. However, it does work for some people. Each investor has to come to terms with those questions for himself.
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Article Source: http://www.articlesnatch.com
About the Author:Alex Anderson Uses The MLS Minnesota Real Estate Listings To Help Her Clients To Find Minneapolis homes for sale. Download A Free Copy Of "The Investors' Rental Guide" At http://www.GreatInvestmentProperty.com
Flipping, or the quick reselling of a property that one has just purchased, is a controversial practice. That is because individuals attempting to flip have often engaged in some very bad practices and ended up angering both the buyer and the seller. See, the flipper is neither the buyer nor the seller, though he may play the part of both. Some particularly gutsy flippers talk to the owner of a property and a prospective buyer. Now this buyer thinks the flipper owns the property and gives him the money for it. The flipper then takes the asking price out of this money and gives it to the seller, pocketing the difference. He has never invested a penny of his own money. What he has done, effectively, is sold property that isn't even his. If it goes well, the true buyer and seller never find out about each other. If it goes badly and they do find out about each other, then there will be some very awkward moments to say the least. The buyer is angry because he feels if the flipper was able to sell his property at $110,000, when is only asking for $90,000, then he is the one who should benefit from the inflated price. The buyer, on the other hand, is angry that he is being asked by this third party for $110,000 when he could have gotten the property for only $90,000. The clumsy flipper potentially angers everyone, and that is not what should happen in a business deal. Everyone should walk away from a deal thinking that he got just what he needed from the exchange. No one should feel as though someone is trying to swindle them. That doesn't mean that there isn't a legitimate way to flip properties, a way that doesn't leave everyone's feathers ruffled. According to Ken McElroy, author of “The ABCs of Real Estate Investing,” there are corporations that do it, and that is pretty much what it takes. Corporations that flip buy a property from a seller and then go on a whirlwind communications campaign to everyone on its list. This costs money, but the corporation has access to so many people that it isn't long before someone buys the property. It may even happen that very day. That is flipping, but both the buyer and the seller come out of the deal happy. The company doesn't have to keep the buyer and seller from finding out about each other. It is amazing how many people are out there trying to be a middleman between buyer and seller, who are trying to sell property that they haven't actually purchased. If the investor follows one simple rule—actually buy the property before you try to sell it—then he can avoid a lot of nastiness. It is amazing how many people are out there trying to be slick and sell before they buy. Each investor should ask himself which is the best approach to real estate for him, personally. Trying to be a lone flipper is an approach that is rife with limitations, and it doesn't allow for the development of a property into something that is genuinely worth more than the investor paid for it. It doesn't allow the flipper to actually be an asset to the community, but does allow him to artificially inflate prices. However, it does work for some people. Each investor has to come to terms with those questions for himself.
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Article Source: http://www.articlesnatch.com
About the Author:Alex Anderson Uses The MLS Minnesota Real Estate Listings To Help Her Clients To Find Minneapolis homes for sale. Download A Free Copy Of "The Investors' Rental Guide" At http://www.GreatInvestmentProperty.com
10 Crude Oil Spread Trading Facts
By: Robert Thomas
The Crude Oil markets can move a lot on rumour, news of supply problems in the Gulf of Mexico, news of OPEC increasing production levels, changes in USD exchange rates etc but what about the Facts? 1)One of the biggest factors affecting the price of crude oil is the exchange rate. Because Oil is traded in US Dollars then, all things being equal, the price of Crude Oil often follows the US Dollar exchange rates. If the US Dollar depreciates in value against the Euro and / or Pound then the price of Crude will go up. If the dollar grows stronger, the price drops. This is not guaranteed but it is always worth taking this important correlation into account. 2)There are generally two types of crude oil that are traded: a.Brent Crude Oil which is based on the price settled at the Intercontinental Exchange (ICE), a London based exchange on which futures and options on energy products are traded b.Nymex Crude Oil (also known as US Crude, WTI or West Texas Intermediate) which is based on the price settled at the New York Mercantile Exchange (Nymex) You can spread bet on both of these with companies like FinancialSpreads.com. 3)Crude Oil, whether Brent Crude or Nymex, is priced in US$ per barrel 4)When spread betting on Crude Oil you trade in Pounds per Cent, Euros per Cent or Dollars per Cent If you are betting £2 per Cent (£2 per $0.01) and the price of a barrel moves by $1.50 (150 cents) then your profit / loss would alter by £2 per Cent x 150 cents = £300. 5)The price of Brent Crude is normally always higher than Nymex 6)A number of spread betting companies let you trade two different types of Crude Oil market a.A Daily Market, aimed at Day Traders with narrow spreads b.A Futures Market where the market is settled in 1-3 months time. With this option the spread is wider. However these futures markets can be better value than the daily market if you want to hold on to your bet for the short-medium term. 7)Interest Rate changes can have knock on affects. Trends do not always follow and we know that past performance does not always predict the future. However in 2008 when the US Government was lowering Interest Rates that caused weakness in the USD and therefore, again, with a lower dollar there were large increases in the price of crude 8)You can spread bet on Crude Oil tax free* and commission free with companies like
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Article Source: http://www.articlesnatch.com
About the Author:Robert Thomas is a specialist spread betting journalist. A seasoned financial writer he offers strategic and tactical opinion on stocks and shares, indices, forex and commodities spread betting.
The Crude Oil markets can move a lot on rumour, news of supply problems in the Gulf of Mexico, news of OPEC increasing production levels, changes in USD exchange rates etc but what about the Facts? 1)One of the biggest factors affecting the price of crude oil is the exchange rate. Because Oil is traded in US Dollars then, all things being equal, the price of Crude Oil often follows the US Dollar exchange rates. If the US Dollar depreciates in value against the Euro and / or Pound then the price of Crude will go up. If the dollar grows stronger, the price drops. This is not guaranteed but it is always worth taking this important correlation into account. 2)There are generally two types of crude oil that are traded: a.Brent Crude Oil which is based on the price settled at the Intercontinental Exchange (ICE), a London based exchange on which futures and options on energy products are traded b.Nymex Crude Oil (also known as US Crude, WTI or West Texas Intermediate) which is based on the price settled at the New York Mercantile Exchange (Nymex) You can spread bet on both of these with companies like FinancialSpreads.com. 3)Crude Oil, whether Brent Crude or Nymex, is priced in US$ per barrel 4)When spread betting on Crude Oil you trade in Pounds per Cent, Euros per Cent or Dollars per Cent If you are betting £2 per Cent (£2 per $0.01) and the price of a barrel moves by $1.50 (150 cents) then your profit / loss would alter by £2 per Cent x 150 cents = £300. 5)The price of Brent Crude is normally always higher than Nymex 6)A number of spread betting companies let you trade two different types of Crude Oil market a.A Daily Market, aimed at Day Traders with narrow spreads b.A Futures Market where the market is settled in 1-3 months time. With this option the spread is wider. However these futures markets can be better value than the daily market if you want to hold on to your bet for the short-medium term. 7)Interest Rate changes can have knock on affects. Trends do not always follow and we know that past performance does not always predict the future. However in 2008 when the US Government was lowering Interest Rates that caused weakness in the USD and therefore, again, with a lower dollar there were large increases in the price of crude 8)You can spread bet on Crude Oil tax free* and commission free with companies like
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Article Source: http://www.articlesnatch.com
About the Author:Robert Thomas is a specialist spread betting journalist. A seasoned financial writer he offers strategic and tactical opinion on stocks and shares, indices, forex and commodities spread betting.
Opportunities For Overseas Investors To Purchace In A Destination Fit For A King
By: Kaloyan-Veselinov Banev
When the king of Thailand is looking for somewhere to recharge his batteries, he frequently chooses the country’s oldest and most traditional seaside resort, Hua Hin. Just a short flight from the bright lights of Bangkok, it could not be more different - boasting an elegance,charm, and a quiet sophistication that has seen it become something of a Mecca for those seeking relaxation and retirement in the year-round sunshine. And now it’s possible to have a little piece of paradise too, with the development of the brand new Hua Hin Gardens Resort. Planned to appeal to every kind of holidaymaker, the resort offers a full range of facilities including members-only country club; swimming pools; signature restaurants; shops; health and fitness centre; bar lounges; internet café and membership to the Beach Club. There’s even a private 18-hole championship golf club for exclusive use. At this early stage in the development, purchasers will have the opportunity to choose from a variety of floor plans and suite styles, with prices starting as low as £43,500 (or € 65,000). Each residence ranges from 70m2 to 135m2, and offers dramatic balcony views of the resort and the surrounding area, or a sea view. Edwina Silver, of UK agents Premier Overseas Properties, said: “Thailand currently represents excellent investment value, especially Hua Hin, being one of the most. In 1921 the director of the state railway, Prince Purachatra, built the Railway Hotel close to the beach. King Prajadhipok (Rama VII) liked the place so much that he built a summer palace there. The palace was named Wang Klai Kang Won ('Far from Worries'). It is now the full-time residence of His Majesty the King of Thailand. His Royal Highness Prince Krom Phra Naresworarit was the first member of the royal family to build a group of palaces at Ban Laem Hin, called Sukaves, and he give the name Hua Hin to the beach next to his palace. In 1932 Hua Hin was part of Pran Buri district. In 1949 Hua Hin was promoted to be a district of Prachuap Khiri Khan province. After the building of southern railway, Hua Hin became the first and most popular beach resort of Thailand. sought-after holiday destinations in the world. The area has benefited from strong capital growth, well in excess of normal trends, and all the indicators point to a continued demand for well-designed, income-generating tourist based accommodation.” It is for these reasons that the company expect investments to double their value over the next five years. unlike the gloomy predictions for UK property. Purchasers also get the use of the apartment for 39 days a year, allowing them to take advantage of the benefits of Hua Hin, so long enjoyed by the King and his consorts.
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Article Source: http://www.articlesnatch.com
About the Author:Premier Overseas Properties are an international property consultancy that offers you overseas investment property and property sale Thailand.
When the king of Thailand is looking for somewhere to recharge his batteries, he frequently chooses the country’s oldest and most traditional seaside resort, Hua Hin. Just a short flight from the bright lights of Bangkok, it could not be more different - boasting an elegance,charm, and a quiet sophistication that has seen it become something of a Mecca for those seeking relaxation and retirement in the year-round sunshine. And now it’s possible to have a little piece of paradise too, with the development of the brand new Hua Hin Gardens Resort. Planned to appeal to every kind of holidaymaker, the resort offers a full range of facilities including members-only country club; swimming pools; signature restaurants; shops; health and fitness centre; bar lounges; internet café and membership to the Beach Club. There’s even a private 18-hole championship golf club for exclusive use. At this early stage in the development, purchasers will have the opportunity to choose from a variety of floor plans and suite styles, with prices starting as low as £43,500 (or € 65,000). Each residence ranges from 70m2 to 135m2, and offers dramatic balcony views of the resort and the surrounding area, or a sea view. Edwina Silver, of UK agents Premier Overseas Properties, said: “Thailand currently represents excellent investment value, especially Hua Hin, being one of the most. In 1921 the director of the state railway, Prince Purachatra, built the Railway Hotel close to the beach. King Prajadhipok (Rama VII) liked the place so much that he built a summer palace there. The palace was named Wang Klai Kang Won ('Far from Worries'). It is now the full-time residence of His Majesty the King of Thailand. His Royal Highness Prince Krom Phra Naresworarit was the first member of the royal family to build a group of palaces at Ban Laem Hin, called Sukaves, and he give the name Hua Hin to the beach next to his palace. In 1932 Hua Hin was part of Pran Buri district. In 1949 Hua Hin was promoted to be a district of Prachuap Khiri Khan province. After the building of southern railway, Hua Hin became the first and most popular beach resort of Thailand. sought-after holiday destinations in the world. The area has benefited from strong capital growth, well in excess of normal trends, and all the indicators point to a continued demand for well-designed, income-generating tourist based accommodation.” It is for these reasons that the company expect investments to double their value over the next five years. unlike the gloomy predictions for UK property. Purchasers also get the use of the apartment for 39 days a year, allowing them to take advantage of the benefits of Hua Hin, so long enjoyed by the King and his consorts.
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Article Source: http://www.articlesnatch.com
About the Author:Premier Overseas Properties are an international property consultancy that offers you overseas investment property and property sale Thailand.
Financial Adviser or Money Manager
By: Anthony Green
We�ve all seen those commercials by the online brokerage services that bash the stockbroker. You know which ones I�m talking about. The guy is washing his boat and says, �The only thing my broker did was make me broker.� Or the award-winning commercial with the truck driver who has a picture of his island on the dashboard. While these commercials get our attention, make us laugh, and get us to wonder if it is that easy, they do make you think about what value the full-service financial adviser or money manager should provide. Here are just some of the benefits we see in dealing with a professional who has a solid game plan for investing. - Personalized service instead of using the bandwagon approach, i.e., What�s best for the masses must be best for me, too. - Keeping you on track with the game plan. When the temptation to jump is the greatest because you have that feeling of 'if I don�t buy now I�m going to miss out', your stockbroker can gently remind you of the sector field position at 90 percent. At 30 percent, when you should be buying, you may feel your stomach churning, but this is when your investment adviser can counsel you through difficult market environments because he�s been there before. He�s seen 30 percent, 70 percent, and everything in between. - The point and figure methodology is something you and your broker can work on together. For instance, he can e-mail you charts. You still stay informed and involved in the process, but don�t have to do the day-to-day portfolio maintenance. - As a busy professional yourself, you may not have the time to devote to your investments that they require. For instance, we can book our own flights on the Internet, but we still use our travel agency because it provides a valuable service. Our associates could spend forty-five minutes on the Internet looking up everything and booking it, but their time is better spent doing point and figure research. In a five-minute phone call, they can give our travel agent the details of when and where they�re going, and the travel agent takes care of the rest. - What about the rest of your family? Maybe you really take a keen interest in the stock market and understanding how to pick stocks, but your spouse might not share that same enthusiasm. When preparing for the future, wouldn�t it be a good idea to have someone who enthusiastically understands your financial picture and your goals? If Noah had waited until he felt a raindrop to start building the ark, then he would not have been ready for the flood. Don�t wait until a crisis arises to take action. Do your homework and make plans ahead of time so that when the need arises, the transition is much easier.
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Article Source: http://www.articlesnatch.com
About the Author:Get 89.3 percent accurate stock market trading tips and stock trading strategy, Turn 1000 USD into 1,000,000 USD guaranteed. For more details visit http://www.5minutetrader.com/.
We�ve all seen those commercials by the online brokerage services that bash the stockbroker. You know which ones I�m talking about. The guy is washing his boat and says, �The only thing my broker did was make me broker.� Or the award-winning commercial with the truck driver who has a picture of his island on the dashboard. While these commercials get our attention, make us laugh, and get us to wonder if it is that easy, they do make you think about what value the full-service financial adviser or money manager should provide. Here are just some of the benefits we see in dealing with a professional who has a solid game plan for investing. - Personalized service instead of using the bandwagon approach, i.e., What�s best for the masses must be best for me, too. - Keeping you on track with the game plan. When the temptation to jump is the greatest because you have that feeling of 'if I don�t buy now I�m going to miss out', your stockbroker can gently remind you of the sector field position at 90 percent. At 30 percent, when you should be buying, you may feel your stomach churning, but this is when your investment adviser can counsel you through difficult market environments because he�s been there before. He�s seen 30 percent, 70 percent, and everything in between. - The point and figure methodology is something you and your broker can work on together. For instance, he can e-mail you charts. You still stay informed and involved in the process, but don�t have to do the day-to-day portfolio maintenance. - As a busy professional yourself, you may not have the time to devote to your investments that they require. For instance, we can book our own flights on the Internet, but we still use our travel agency because it provides a valuable service. Our associates could spend forty-five minutes on the Internet looking up everything and booking it, but their time is better spent doing point and figure research. In a five-minute phone call, they can give our travel agent the details of when and where they�re going, and the travel agent takes care of the rest. - What about the rest of your family? Maybe you really take a keen interest in the stock market and understanding how to pick stocks, but your spouse might not share that same enthusiasm. When preparing for the future, wouldn�t it be a good idea to have someone who enthusiastically understands your financial picture and your goals? If Noah had waited until he felt a raindrop to start building the ark, then he would not have been ready for the flood. Don�t wait until a crisis arises to take action. Do your homework and make plans ahead of time so that when the need arises, the transition is much easier.
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Article Source: http://www.articlesnatch.com
About the Author:Get 89.3 percent accurate stock market trading tips and stock trading strategy, Turn 1000 USD into 1,000,000 USD guaranteed. For more details visit http://www.5minutetrader.com/.
Successful investments and broker comparison – is there a connection?
By: Mira Williams
The Internet has become a corner of paradise for those interested in online share trading. Given the generous amount of information presented on the subject, it’s only natural that an increasing number of people have discovered a taste for share trading. A specialized resource that presents detailed information on brokers, online sharetrading and future trading can only be regarded as highly useful. A team of specialists works constantly to offer all this information to those interested. Do you want to find the best possible investment broker to take care of your needs and demands? If so, then you can take full advantage of the stock broker comparison offered online. Discover names of various professional brokers, check out their ratings and available costs. The information presented includes details on share trading, future trading and in general about the stock market. If you prefer to invest in managed funds, then you can check out the local funds and available platforms. For all local funds, you can find out detailed information regarding: fund manager, geographical risk, risk rating and minimum deposit. Many people have heard of offshore funds but they are not certain when it comes to such investments. If you are interested in this investment opportunity, then do not hesitate. You have all the information you need presented online. Just like with other types of investment opportunities, discover the following info: name of the offshore fund, manager of the fund, location and geographical risk, industries, risk rating, fund currency and performance (varying from 3 months to 10 years). All this information is presented through the comparison service and you can certainly understand why it is regarded with such high praise (given its usefulness). As a general rule, no one should invest without carefully analyzing the stock market and current trends. Knowing what to expect is synonymous with being successful when it comes those who want to trade shares. The risks associated with futures trading and other types of investments are better known today thanks to the specialized resources introduced online. Traders of all kinds, investors and stock brokers prefer to take advantage of the information presented online, saving time and effort. Online share trading has become popular without doubt. The opportunities presented have caused an upsurge in the number of people looking to break through. A source for comparing brokers is perceived as a valuable help. It eliminates the need for a thorough research and offers the information needed in just a few minutes. Why settle for rumors and hear-say tips regarding the stock market? You can let specialists in the field help you. Thus, you will soon discover the sweet success brought on by the smart investments you made. As a person wanting to trade shares, it’s essential to be aware of all potential strategies. That also includes having the right investment broker to fight all the battles in your behalf!
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Article Source: http://www.articlesnatch.com
About the Author:Brokercompare.co.za - OnlineBrokers - We are sub - Fund Manager of the Imara East Africa Fund, a fund which specializes in investing in the financial markets of Kenya, Uganda, Tanzania, Rwanda, Sudan and Mauritius. Although it`s primary focus is to hold listed securities it will also acquire attractive investments in non-listed companies when opportunities arise.
The Internet has become a corner of paradise for those interested in online share trading. Given the generous amount of information presented on the subject, it’s only natural that an increasing number of people have discovered a taste for share trading. A specialized resource that presents detailed information on brokers, online sharetrading and future trading can only be regarded as highly useful. A team of specialists works constantly to offer all this information to those interested. Do you want to find the best possible investment broker to take care of your needs and demands? If so, then you can take full advantage of the stock broker comparison offered online. Discover names of various professional brokers, check out their ratings and available costs. The information presented includes details on share trading, future trading and in general about the stock market. If you prefer to invest in managed funds, then you can check out the local funds and available platforms. For all local funds, you can find out detailed information regarding: fund manager, geographical risk, risk rating and minimum deposit. Many people have heard of offshore funds but they are not certain when it comes to such investments. If you are interested in this investment opportunity, then do not hesitate. You have all the information you need presented online. Just like with other types of investment opportunities, discover the following info: name of the offshore fund, manager of the fund, location and geographical risk, industries, risk rating, fund currency and performance (varying from 3 months to 10 years). All this information is presented through the comparison service and you can certainly understand why it is regarded with such high praise (given its usefulness). As a general rule, no one should invest without carefully analyzing the stock market and current trends. Knowing what to expect is synonymous with being successful when it comes those who want to trade shares. The risks associated with futures trading and other types of investments are better known today thanks to the specialized resources introduced online. Traders of all kinds, investors and stock brokers prefer to take advantage of the information presented online, saving time and effort. Online share trading has become popular without doubt. The opportunities presented have caused an upsurge in the number of people looking to break through. A source for comparing brokers is perceived as a valuable help. It eliminates the need for a thorough research and offers the information needed in just a few minutes. Why settle for rumors and hear-say tips regarding the stock market? You can let specialists in the field help you. Thus, you will soon discover the sweet success brought on by the smart investments you made. As a person wanting to trade shares, it’s essential to be aware of all potential strategies. That also includes having the right investment broker to fight all the battles in your behalf!
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Article Source: http://www.articlesnatch.com
About the Author:Brokercompare.co.za - OnlineBrokers - We are sub - Fund Manager of the Imara East Africa Fund, a fund which specializes in investing in the financial markets of Kenya, Uganda, Tanzania, Rwanda, Sudan and Mauritius. Although it`s primary focus is to hold listed securities it will also acquire attractive investments in non-listed companies when opportunities arise.
Selling Options – Is It The Holy Grail of Investments?
By: Danny Swad
Option sellers believe that if it’s not, it’s pretty darn close. Probably the closest an investor will ever get to the long sought Holy Grail of Investments or what is considered to be the ideal investment. Let’s take a look and see what exactly is regarded as the ideal investment. When asked to define what this is investors have various versions of what they consider to be the ideal investment or the Holy Grail of Investments. In the ultimate analysis, with few exceptions, most investors feel that an ideal investment should provide the following qualities: safety of capital, consistent high returns, immunity from economic and market fluctuations and finally, liquidity, or availability of funds should the investor find an immediate need to tap his resources. Safety of capital and high returns seem to be the most desirable of all yet these two are totally opposing qualities in any investment. As the saying goes, the higher the risk, the greater the reward or inversely, the lower the risk the smaller the reward. That said let’s explore our choices. Until the advent of options there appeared to be nothing that came even close to being called an ideal investment let alone be called the Holy Grail of Investments. We had to face the fact that investments were either low risk low reward or high risk high reward. Some investments were somewhere in the middle ground but few or none were in the Holy Grail category. Investors may be classified into two groups, passive and active investors. Passive investors prefer entrusting their capital to third parties and doing nothing more than expect returns from their investments either on a regular basis or value appreciation over time. They put their money into a fixed return instrument such as passbook savings accounts, money market funds, treasury bills, certificates of deposits, bonds and included in this lot are dividend paying stocks and mutual funds. Then there are the other passive investors that prefer to place funds into long term appreciation assets with capital growth as their main goal. Examples of these types of investments would be real estate, precious metals, arts and antiques. All these investment instruments while delivering small returns on a year-on-year basis do offer much safety of capital. The active investor on the other hand is a more adventurous individual. He seeks high returns for his money, hopefully at reduced risk, by actively being involved in trading the markets, be it real estate, stocks, bonds, commodities, futures, foreign exchange, options or whatever else can be traded and made money on. Although more of a risk taker he nevertheless tries to moderate his risk exposure by restraining his profit objectives or rates of return on his capital. While passive investors are happy with annual returns of 6 to 10 percent, active investors seek higher rates of over 12 percent and more like in the region of 14 to 18 percent per annum. Is this doable? Yes, it is and many are happy actively trading the markets and achieving these returns using their own trading techniques that somewhat controls risk to an acceptable degree. Now here’s the shocker. Option traders are able to generate annual profits in excess of 20 percent without exposing themselves to any more risk that those achieving 14 percent. Now here is an even greater shocker. Among those that trade options the ones specializing on the selling side generate annual returns in excess of 30 percent with many averaging annual returns in the region of 40 to 50 percent without increasing the risk factor any more than the passive investor! Foreign currency traders as well as commodities and futures traders sneeze at this claim saying that they can outshine the option seller in annual returns. True. But can they claim to do so at the same risk level as the passive investors? Most probably not. Selling options (stocks, commodities, futures, etc) has become for many the Holy Grail of Investments. To the experienced option seller this trading strategy offers high, consistent returns, a fair degree of immunity against economic and market fluctuations, liquidity, and finally safety of capital. This last claim may be open to debate from non-believers in this trading strategy. To be fair let’s qualify the safety claim by saying that the inexperienced option seller is open to potentially heavy losses if he does not know what he is doing. But to the seasoned trader selling options is a safe investment strategy delivering all the qualities of an ideal investment to the point where successful option sellers claim to have found what to them is the closest one can ever get to the Holy Grail of Investments. Selling options on stocks, which is the specialty of this writer, can be particularly rewarding using a carefully planned trading system combined with disciplined money management and with proper safeguards in place. There are many trading strategies in selling options. Some are simple enough, like the covered call technique, delivering fairly decent returns while others are more complex but more rewarding. There is one option selling system developed by this writer that can be carried out as a long term investment program offering a fair degree of safety and delivering consistent high returns time after time. By using a carefully planned, three-pronged system of trading, the risks associated with selling options can easily be conquered. This writer has mastered this three-pronged trading technique and anyone wishing more information may visit his web site at http://www.theoptionseller.com.
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Article Source: http://www.articlesnatch.com
About the Author:The author is a semi-retired business executive who now dedicates time to trading stock options. His stock and options trading experience spans nearly 30 years. He has been specializing in selling naked options for the past several years and has written a ‘how to’ ebook about his successful trading system. For more information: http://www.theoptionseller.com
Option sellers believe that if it’s not, it’s pretty darn close. Probably the closest an investor will ever get to the long sought Holy Grail of Investments or what is considered to be the ideal investment. Let’s take a look and see what exactly is regarded as the ideal investment. When asked to define what this is investors have various versions of what they consider to be the ideal investment or the Holy Grail of Investments. In the ultimate analysis, with few exceptions, most investors feel that an ideal investment should provide the following qualities: safety of capital, consistent high returns, immunity from economic and market fluctuations and finally, liquidity, or availability of funds should the investor find an immediate need to tap his resources. Safety of capital and high returns seem to be the most desirable of all yet these two are totally opposing qualities in any investment. As the saying goes, the higher the risk, the greater the reward or inversely, the lower the risk the smaller the reward. That said let’s explore our choices. Until the advent of options there appeared to be nothing that came even close to being called an ideal investment let alone be called the Holy Grail of Investments. We had to face the fact that investments were either low risk low reward or high risk high reward. Some investments were somewhere in the middle ground but few or none were in the Holy Grail category. Investors may be classified into two groups, passive and active investors. Passive investors prefer entrusting their capital to third parties and doing nothing more than expect returns from their investments either on a regular basis or value appreciation over time. They put their money into a fixed return instrument such as passbook savings accounts, money market funds, treasury bills, certificates of deposits, bonds and included in this lot are dividend paying stocks and mutual funds. Then there are the other passive investors that prefer to place funds into long term appreciation assets with capital growth as their main goal. Examples of these types of investments would be real estate, precious metals, arts and antiques. All these investment instruments while delivering small returns on a year-on-year basis do offer much safety of capital. The active investor on the other hand is a more adventurous individual. He seeks high returns for his money, hopefully at reduced risk, by actively being involved in trading the markets, be it real estate, stocks, bonds, commodities, futures, foreign exchange, options or whatever else can be traded and made money on. Although more of a risk taker he nevertheless tries to moderate his risk exposure by restraining his profit objectives or rates of return on his capital. While passive investors are happy with annual returns of 6 to 10 percent, active investors seek higher rates of over 12 percent and more like in the region of 14 to 18 percent per annum. Is this doable? Yes, it is and many are happy actively trading the markets and achieving these returns using their own trading techniques that somewhat controls risk to an acceptable degree. Now here’s the shocker. Option traders are able to generate annual profits in excess of 20 percent without exposing themselves to any more risk that those achieving 14 percent. Now here is an even greater shocker. Among those that trade options the ones specializing on the selling side generate annual returns in excess of 30 percent with many averaging annual returns in the region of 40 to 50 percent without increasing the risk factor any more than the passive investor! Foreign currency traders as well as commodities and futures traders sneeze at this claim saying that they can outshine the option seller in annual returns. True. But can they claim to do so at the same risk level as the passive investors? Most probably not. Selling options (stocks, commodities, futures, etc) has become for many the Holy Grail of Investments. To the experienced option seller this trading strategy offers high, consistent returns, a fair degree of immunity against economic and market fluctuations, liquidity, and finally safety of capital. This last claim may be open to debate from non-believers in this trading strategy. To be fair let’s qualify the safety claim by saying that the inexperienced option seller is open to potentially heavy losses if he does not know what he is doing. But to the seasoned trader selling options is a safe investment strategy delivering all the qualities of an ideal investment to the point where successful option sellers claim to have found what to them is the closest one can ever get to the Holy Grail of Investments. Selling options on stocks, which is the specialty of this writer, can be particularly rewarding using a carefully planned trading system combined with disciplined money management and with proper safeguards in place. There are many trading strategies in selling options. Some are simple enough, like the covered call technique, delivering fairly decent returns while others are more complex but more rewarding. There is one option selling system developed by this writer that can be carried out as a long term investment program offering a fair degree of safety and delivering consistent high returns time after time. By using a carefully planned, three-pronged system of trading, the risks associated with selling options can easily be conquered. This writer has mastered this three-pronged trading technique and anyone wishing more information may visit his web site at http://www.theoptionseller.com.
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Article Source: http://www.articlesnatch.com
About the Author:The author is a semi-retired business executive who now dedicates time to trading stock options. His stock and options trading experience spans nearly 30 years. He has been specializing in selling naked options for the past several years and has written a ‘how to’ ebook about his successful trading system. For more information: http://www.theoptionseller.com
Investing Your Money Right
By: Jim 4 Burg4
Investing in gold historically, and today, is of the best investment options we have. There are several different types of gold investments, but the most sought out way of investing in gold is through private gold ownership by way of investment-grade gold and silver coins. You can buy your gold coins from a number of places such as gold coin dealers, brokers of large firms with little or no experience, local coin or pawn shops, and also through online stores. The latter options are not recommended for several reasons. Beware of the pricing structure as many of them mark up their coins 28% to as much as 45%. Search for discount gold coin dealers, until you find an expert who knows what they are talking about with the absolute lowest prices. The internet is the best place to search for your gold coins in the United States because US gold and silver coins provide the highest profit potential of any gold or silver coins in the marketplace. Don't just go to your local coin shop who sells inferior coins or is limited, learn about how to maximize your profits through US investment-grade gold and silver coins from discount dealers that sell nationwide. Search keywords online such as discount coin dealers, discount gold coins, discount gold dealers, etc. Normally, you will find a great variation in the price of different types of gold coins. Bullion coins are reportable assets and investment coins are private and non-reportable. Most importantly, compare the prices between different precious metals firms. Don't just talk with one firm because they will say anything. Search for superior discount coins (dot com) and you will be rewarded by comparing the different prices for a higher return on your investment. Don't just talk to one firm, look for discount firms and search for an expert because many of the larger firms not only charge more, but you may get stuck with a broker that has little or no experience versus years of knowledge and expertise in the marketplace. Only buy your coins from someone you trust. Until you find that expert that leads you in the right direction, educating you on your options, providing the absolute lowest prices, don't make a move because the right discount dealer could save you 45-75% on investment spreads. In other words, don't pay more than you have to. Play it safe and find someone online that you can deal with offline and interact in real time. You should also be able to talk to your discount coin dealer about the growth potential of several different coins. You need an expert that knows how certain coins have performed historically, and how they are expected to perform in the future. This way, you can make the right decision on which coins you would like to purchase. Focus on getting the best return on your investment. Search for discount coin dealers in order to find the best values of high quality coins ("sight seen" - not sight unseen, which are inferior coins) that will provide the highest profit potential in the shortest amount of time. Ultimately, your investment coins will work harder for you.
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Article Source: http://www.articlesnatch.com
About the Author:
Jim Burg is author of this article on gold silver coins. Find more information about gold silver coins here
Investing in gold historically, and today, is of the best investment options we have. There are several different types of gold investments, but the most sought out way of investing in gold is through private gold ownership by way of investment-grade gold and silver coins. You can buy your gold coins from a number of places such as gold coin dealers, brokers of large firms with little or no experience, local coin or pawn shops, and also through online stores. The latter options are not recommended for several reasons. Beware of the pricing structure as many of them mark up their coins 28% to as much as 45%. Search for discount gold coin dealers, until you find an expert who knows what they are talking about with the absolute lowest prices. The internet is the best place to search for your gold coins in the United States because US gold and silver coins provide the highest profit potential of any gold or silver coins in the marketplace. Don't just go to your local coin shop who sells inferior coins or is limited, learn about how to maximize your profits through US investment-grade gold and silver coins from discount dealers that sell nationwide. Search keywords online such as discount coin dealers, discount gold coins, discount gold dealers, etc. Normally, you will find a great variation in the price of different types of gold coins. Bullion coins are reportable assets and investment coins are private and non-reportable. Most importantly, compare the prices between different precious metals firms. Don't just talk with one firm because they will say anything. Search for superior discount coins (dot com) and you will be rewarded by comparing the different prices for a higher return on your investment. Don't just talk to one firm, look for discount firms and search for an expert because many of the larger firms not only charge more, but you may get stuck with a broker that has little or no experience versus years of knowledge and expertise in the marketplace. Only buy your coins from someone you trust. Until you find that expert that leads you in the right direction, educating you on your options, providing the absolute lowest prices, don't make a move because the right discount dealer could save you 45-75% on investment spreads. In other words, don't pay more than you have to. Play it safe and find someone online that you can deal with offline and interact in real time. You should also be able to talk to your discount coin dealer about the growth potential of several different coins. You need an expert that knows how certain coins have performed historically, and how they are expected to perform in the future. This way, you can make the right decision on which coins you would like to purchase. Focus on getting the best return on your investment. Search for discount coin dealers in order to find the best values of high quality coins ("sight seen" - not sight unseen, which are inferior coins) that will provide the highest profit potential in the shortest amount of time. Ultimately, your investment coins will work harder for you.
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Article Source: http://www.articlesnatch.com
About the Author:
Jim Burg is author of this article on gold silver coins. Find more information about gold silver coins here
Investment opportunities on the stock exchange
By: Rufus112 Black112
When looking out for investment that are sure to get you a quick return, which is what you want when you invest in something, you have a few choices. First you can go for property investments; you can also maybe look at the restaurant business, and the fast food business. You could also, look at the film and TV industry or the music industry, which is one of the biggest and best ways to invest, and will show you’re a large return in less time. Let’s face it we all want to be rich one day, we all dream of having large expensive cars, big houses with 6 bed rooms, 5 bathrooms and a swimming pool large enough for a family of 20 have a swimming bout. That is not impossible for many people, in fact there are people out there that already have that, and all the other people around them are wondering and trying to figure out just how they did it. They all have their own ways, and there is a way for you to be living the dream of many. The easiest of the choices is to look into investment opportunities. There are many, we all know that, they are easy to start if you have the means, but the questions on everyone’s mind is what are the means, where do I start and what do I need to start? Well the simple answer to that is money. That is the long and short of it, you need money to make money, and there is no getting around it that is if you are looking to see a return on your investment straight away, and who does not? Another way you can earn money over a period of time, which does not mean that you will have to wait years before you see a return, is luxury cars. This will work the same or basically the same as property investments. You will need to find the car you want to resell, and remember that the moment a car leaves the lot it drops in price. However, that is with a normal car, that you will find in abundance on the road. We are talking about cars like the Ferrari, and Lamborghini and such car, that, like a good wine, matures with age. Though it is advise that you do not buy a second hand car to resell, because your return will not be as big as you would like, because a third hand car does not sound as good as a sole mandate. So start digging and see what you can find on the net about luxury cars as investment opportunities. Also remember that you do not want to take a million dollar loan from any bank, or at all, as this will set your return back until you have paid for the car, and also, remember that you will not be able to get a good return on the car unless you have had it for a few years, and the model is not being made anymore.
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Article Source: http://www.articlesnatch.com
About the Author:
Rufus Black is part of the Investor Portal team, which reviews scores of investment opportunities each month and publishes the best ones on its website. Find more information about share trading systems here.
When looking out for investment that are sure to get you a quick return, which is what you want when you invest in something, you have a few choices. First you can go for property investments; you can also maybe look at the restaurant business, and the fast food business. You could also, look at the film and TV industry or the music industry, which is one of the biggest and best ways to invest, and will show you’re a large return in less time. Let’s face it we all want to be rich one day, we all dream of having large expensive cars, big houses with 6 bed rooms, 5 bathrooms and a swimming pool large enough for a family of 20 have a swimming bout. That is not impossible for many people, in fact there are people out there that already have that, and all the other people around them are wondering and trying to figure out just how they did it. They all have their own ways, and there is a way for you to be living the dream of many. The easiest of the choices is to look into investment opportunities. There are many, we all know that, they are easy to start if you have the means, but the questions on everyone’s mind is what are the means, where do I start and what do I need to start? Well the simple answer to that is money. That is the long and short of it, you need money to make money, and there is no getting around it that is if you are looking to see a return on your investment straight away, and who does not? Another way you can earn money over a period of time, which does not mean that you will have to wait years before you see a return, is luxury cars. This will work the same or basically the same as property investments. You will need to find the car you want to resell, and remember that the moment a car leaves the lot it drops in price. However, that is with a normal car, that you will find in abundance on the road. We are talking about cars like the Ferrari, and Lamborghini and such car, that, like a good wine, matures with age. Though it is advise that you do not buy a second hand car to resell, because your return will not be as big as you would like, because a third hand car does not sound as good as a sole mandate. So start digging and see what you can find on the net about luxury cars as investment opportunities. Also remember that you do not want to take a million dollar loan from any bank, or at all, as this will set your return back until you have paid for the car, and also, remember that you will not be able to get a good return on the car unless you have had it for a few years, and the model is not being made anymore.
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Article Source: http://www.articlesnatch.com
About the Author:
Rufus Black is part of the Investor Portal team, which reviews scores of investment opportunities each month and publishes the best ones on its website. Find more information about share trading systems here.
Investing in shares
By: Canterbury Services55 Canterbury Services55
As we grow up we never think about how we would want to make money. Yes, we fantasize about being a fireman, we fantasize about being a ballerina or an astronaut or even a mermaid. But we really do not think that we need to make money and that we need to take care of a family. All we wonder about is the fantastic jobs we see in movie. However, as we grow older we release that we do need to make money, because we start thinking about and understand the value of a dollar. We look back in the old days and realize how when we were younger things cost a few cents and these days they cost a few dollars. We will then start thinking about how we will make money, and we start realizing that being an astronaut is just not possible, or that becoming a fireman is too dangerous, or that you will probably never become a mermaid. So we will look at other ways of making money, many people will go to college and to well, they will go off and become vice presidents of company’s and managers and have really great jobs. Then you will get the other people, who come across a little bit of money and try to find ways to make more money with that money. If they have enough money, some people will open up a store as an investment, some will start a company from something they always wanted to do, like being a mechanic or something like that, and then others will invest in real estate. Investing in property is something that will show a huge return very quickly. Property is something that employees and feeds millions of people around the world. It is even something that allows them to buy a nice house and a nice car, which will probably be something that they never thought possible. Now if you really want to make some money, property investing Brisbane will be your way to success. Another way you can get more money from money that you inherited will be to invest in shares. Now not many people will understand how to do this or where to start, but once you get a hang of it you will find that it is a piece of cake. Money people, however, after working at the lessons and number still do not get to understand they way it works. These people do not need to worry about it, because if they still want to invest in shares, all they need to do is get a broker, and as long as they know a bit about it, they cannot get ripped off. In fact there is one sure way to know that you are getting ripped off, or to know that you need to change brokers, the main tell tale will be the fact that you are losing money. So be not afraid of the unknown, because there lays success for many.
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Article Source: http://www.articlesnatch.com
About the Author:
Canterbury Services is author of this article on Canterbury Property Services. Find more information about Canterbury Property Services here.
As we grow up we never think about how we would want to make money. Yes, we fantasize about being a fireman, we fantasize about being a ballerina or an astronaut or even a mermaid. But we really do not think that we need to make money and that we need to take care of a family. All we wonder about is the fantastic jobs we see in movie. However, as we grow older we release that we do need to make money, because we start thinking about and understand the value of a dollar. We look back in the old days and realize how when we were younger things cost a few cents and these days they cost a few dollars. We will then start thinking about how we will make money, and we start realizing that being an astronaut is just not possible, or that becoming a fireman is too dangerous, or that you will probably never become a mermaid. So we will look at other ways of making money, many people will go to college and to well, they will go off and become vice presidents of company’s and managers and have really great jobs. Then you will get the other people, who come across a little bit of money and try to find ways to make more money with that money. If they have enough money, some people will open up a store as an investment, some will start a company from something they always wanted to do, like being a mechanic or something like that, and then others will invest in real estate. Investing in property is something that will show a huge return very quickly. Property is something that employees and feeds millions of people around the world. It is even something that allows them to buy a nice house and a nice car, which will probably be something that they never thought possible. Now if you really want to make some money, property investing Brisbane will be your way to success. Another way you can get more money from money that you inherited will be to invest in shares. Now not many people will understand how to do this or where to start, but once you get a hang of it you will find that it is a piece of cake. Money people, however, after working at the lessons and number still do not get to understand they way it works. These people do not need to worry about it, because if they still want to invest in shares, all they need to do is get a broker, and as long as they know a bit about it, they cannot get ripped off. In fact there is one sure way to know that you are getting ripped off, or to know that you need to change brokers, the main tell tale will be the fact that you are losing money. So be not afraid of the unknown, because there lays success for many.
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Article Source: http://www.articlesnatch.com
About the Author:
Canterbury Services is author of this article on Canterbury Property Services. Find more information about Canterbury Property Services here.
Unsecured Loans Uk: Best for All Without Property
By: matthew4bell@gmail.com
Normally we come through the loans granted by the property. And you're looking for an agreement of ads of contributions without guarantee. If yes, then you have to approach lenders for loans not guaranteed United Kingdom. This plan is ready to take appropriate measures and affordable for all citizens of the United Kingdom. In the Unsecured Loans Uk, the person who, are unable or unwilling, a well because of the fear of the acquisition of goods by the lender. Finally, here is what you are looking for. Without the help of any kind of guarantee, you can approve amount from 1000 to 25000 £ £. This could turn to lenders taking into account the amount of the loan customers. The repayment will take place from 1-10 years. In this system, amounting to release without worrying about guarantees is a risky affair. This risk is completely different from the lenders. How, the loan is to all holders of credit cards. Interest rates are calculated and additional care, for rational orientation. You can find the appropriate share of the interest rate. The figures may be of interest rates for loans. Therefore collect different prices and offers to compare and offers little cheap. Computer is ready, another service with which you can monthly rates. The return this amount of the loan lets you amazing. Without risk, you can answer your many personal purposes. Personal requirements, like a car to buy up luxury holiday on the exotic, weddings, higher education, and thus can be used in a simple manner. Unsecured Loans Uk in this scheme and no assessment of the property. The demand for online you have access to the amount to the whole world and the clock. It is simple and easy to follow, the candidate with the details in relation to their credit institutions and address of the residence.
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Article Source: http://www.articlesnatch.com
About the Author:Matthew Bell is offering Loan advice for quite some time. To find Unsecured Loans Uk, Fast Unsecured Loans UK, Bad Credit Unsecured Loans, Unsecured Loans, Unsecured Personal Loans. visit http://www.ezunsecuredloans.blogspot.com/
Normally we come through the loans granted by the property. And you're looking for an agreement of ads of contributions without guarantee. If yes, then you have to approach lenders for loans not guaranteed United Kingdom. This plan is ready to take appropriate measures and affordable for all citizens of the United Kingdom. In the Unsecured Loans Uk, the person who, are unable or unwilling, a well because of the fear of the acquisition of goods by the lender. Finally, here is what you are looking for. Without the help of any kind of guarantee, you can approve amount from 1000 to 25000 £ £. This could turn to lenders taking into account the amount of the loan customers. The repayment will take place from 1-10 years. In this system, amounting to release without worrying about guarantees is a risky affair. This risk is completely different from the lenders. How, the loan is to all holders of credit cards. Interest rates are calculated and additional care, for rational orientation. You can find the appropriate share of the interest rate. The figures may be of interest rates for loans. Therefore collect different prices and offers to compare and offers little cheap. Computer is ready, another service with which you can monthly rates. The return this amount of the loan lets you amazing. Without risk, you can answer your many personal purposes. Personal requirements, like a car to buy up luxury holiday on the exotic, weddings, higher education, and thus can be used in a simple manner. Unsecured Loans Uk in this scheme and no assessment of the property. The demand for online you have access to the amount to the whole world and the clock. It is simple and easy to follow, the candidate with the details in relation to their credit institutions and address of the residence.
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Article Source: http://www.articlesnatch.com
About the Author:Matthew Bell is offering Loan advice for quite some time. To find Unsecured Loans Uk, Fast Unsecured Loans UK, Bad Credit Unsecured Loans, Unsecured Loans, Unsecured Personal Loans. visit http://www.ezunsecuredloans.blogspot.com/
All About Online Life Insurance Policy
By: William Black
With life insurance policy you can have peace of mind knowing that your family is protected and will have financial security if the unexpected happens. Earlier people used to think it is necessary to have face to face interaction with the people you are dealing especially in terms of finance. It consumes a lot of time of the people and they also feel lack of proper guidance for choosing the right deal of life insurance policy. But with the advancement of the internet technology, people have started taking interest in it and likewise are enjoying its benefits. Internet medium is getting popular these days and now it has become an integral part of our life. Online life insurance comes up with various advantages over banks and other life insurance companies and agents. One can buy the insurance policy without any stress and in a short span of time. With just a few clicks of your computer mouse, you can access several hundreds of life insurance websites. It is important for you to research and educate yourself with the many aspects of life insurance policies, terms, coverage, and the companies you may be considering; before arriving at final decision. When you feel you are thorough with the pros and cons of the insurance policy, then you can choose the lender who provides you best deal according to your needs at a reasonable price by comparing their quotes. A company like BBB is always there to ensure you that you are dealing with a legitimate company so that you won’t be in trouble of being scammed. You can apply for the life insurance policy very comfortably while sitting at your home. Also, through online medium you don’t need to fill any long term application procedure, you just have to fill certain personal details which will hardly take more than few minutes.
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Article Source: http://www.articlesnatch.com
About the Author:William Black has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Life Insurance Policy, unsecured loans, personal loans, bad credit loans visit http://www.infoaboutloans.co.uk/
With life insurance policy you can have peace of mind knowing that your family is protected and will have financial security if the unexpected happens. Earlier people used to think it is necessary to have face to face interaction with the people you are dealing especially in terms of finance. It consumes a lot of time of the people and they also feel lack of proper guidance for choosing the right deal of life insurance policy. But with the advancement of the internet technology, people have started taking interest in it and likewise are enjoying its benefits. Internet medium is getting popular these days and now it has become an integral part of our life. Online life insurance comes up with various advantages over banks and other life insurance companies and agents. One can buy the insurance policy without any stress and in a short span of time. With just a few clicks of your computer mouse, you can access several hundreds of life insurance websites. It is important for you to research and educate yourself with the many aspects of life insurance policies, terms, coverage, and the companies you may be considering; before arriving at final decision. When you feel you are thorough with the pros and cons of the insurance policy, then you can choose the lender who provides you best deal according to your needs at a reasonable price by comparing their quotes. A company like BBB is always there to ensure you that you are dealing with a legitimate company so that you won’t be in trouble of being scammed. You can apply for the life insurance policy very comfortably while sitting at your home. Also, through online medium you don’t need to fill any long term application procedure, you just have to fill certain personal details which will hardly take more than few minutes.
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Article Source: http://www.articlesnatch.com
About the Author:William Black has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Life Insurance Policy, unsecured loans, personal loans, bad credit loans visit http://www.infoaboutloans.co.uk/
Stock Call Options - Options Trading Research - Stock Options Trading 670
By: optionstradingdomain
All but a scintilla of far out of the money options have any value at all upon their expiration date. How quickly these options express themselves is a measure of market volatility, and most options traders will try to take a neutral position - they'll put in put and call options to cover both directions, and to cover themselves against broad market trends. Events like earnings announcements can provide impetus for accelerated movement. Each options contract controls a block of 100 options on 100 units of the underlying asset. These underlying assets can either be stocks, ETFs or Indexes. At the time this options position was purchased, the underlying asset was about $191.10, well below the strike price. The key to options trading is market research on specific stocks; an options trader will be researching stocks that are either slated for a price spike (call options) or are likely to undergo a price decline (put options). Traders buy Calls when they think the price of the asset is going to go up. However you should not take any advice given as the truth, be sure to test it yourself or ask your broker for clarification. Finally, the trader has an additional holistic appraisal which enables him to associate option methods with technical aid for his option trading. If not all works out and the value of the pound rises above the option rate, the purchaser is under no obligation to sell his options. Through the use of various combinations of calls, puts, and other financial instruments, the option trader can create a position that exactly fits his directional outlook for a specific issue and also conforms to his risk-reward attitude, experience level and capital requirements. If, by the expiry date, your options are not in the money, you will lose your premium. Forex options are a great way to make profits, but must be used with caution. The benefits of options trading is flexibility, coupled with (in the case of put options) a bit of a countercyclical strategy for bear markets. These underlying assets can either be stocks, ETFs or Indexes. The value of Put options work the opposite way, they increase as the underlying asset decreases. If, at any point within the expiry date, the currency pair looks something like USD/GBP=0.5813, a profit has been made. Why does this happen? Because the average trader focuses primarily on options "buying" strategies and does not take advantage of the many other limited-risk techniques available. You get to sell the Pounds at the better rate while everyone else must pay the other rate. So, a chart that is showing a bullish bias would be better suited for a bull call or bear put spread. You may republish this article on the condition that it is not edited and all html links to our website are kept intact. An option is a derivative, meaning its price is based on an underlying asset. If the stock goes up in price to $110 per share from $100, they can either buy the stock, or sell the option to someone else for the difference between the old price and the new price. As a result, a purchase will be made of an "at the money call" for the security. If the trader employs and options spread that uses call options, a bullish move would cause a delta of the call to increase. "Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. You can get the odds in your favor by buying options close to the strike. There is a lot more to consider when trading options and a lot more terminology you need to know then when trading stocks. Plus, nowadays most online options trading websites provides teleconference or even video conference facilities for you to communicate with your broker or client. Betting on the horse that has the better odds will not net as much money, but is more likely to make you a profit. The aim is to swap options with other traders before certain factors influence the market, or to get rid of underperforming options while still getting some profit out of them. Getting obsessed with potential profit lures many investors to options, but playing against the odds is likely to result in a loss.
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Article Source: http://www.articlesnatch.com
About the Author:Learn more about Stock Call Options Options Trading Research Stock Options Trading
All but a scintilla of far out of the money options have any value at all upon their expiration date. How quickly these options express themselves is a measure of market volatility, and most options traders will try to take a neutral position - they'll put in put and call options to cover both directions, and to cover themselves against broad market trends. Events like earnings announcements can provide impetus for accelerated movement. Each options contract controls a block of 100 options on 100 units of the underlying asset. These underlying assets can either be stocks, ETFs or Indexes. At the time this options position was purchased, the underlying asset was about $191.10, well below the strike price. The key to options trading is market research on specific stocks; an options trader will be researching stocks that are either slated for a price spike (call options) or are likely to undergo a price decline (put options). Traders buy Calls when they think the price of the asset is going to go up. However you should not take any advice given as the truth, be sure to test it yourself or ask your broker for clarification. Finally, the trader has an additional holistic appraisal which enables him to associate option methods with technical aid for his option trading. If not all works out and the value of the pound rises above the option rate, the purchaser is under no obligation to sell his options. Through the use of various combinations of calls, puts, and other financial instruments, the option trader can create a position that exactly fits his directional outlook for a specific issue and also conforms to his risk-reward attitude, experience level and capital requirements. If, by the expiry date, your options are not in the money, you will lose your premium. Forex options are a great way to make profits, but must be used with caution. The benefits of options trading is flexibility, coupled with (in the case of put options) a bit of a countercyclical strategy for bear markets. These underlying assets can either be stocks, ETFs or Indexes. The value of Put options work the opposite way, they increase as the underlying asset decreases. If, at any point within the expiry date, the currency pair looks something like USD/GBP=0.5813, a profit has been made. Why does this happen? Because the average trader focuses primarily on options "buying" strategies and does not take advantage of the many other limited-risk techniques available. You get to sell the Pounds at the better rate while everyone else must pay the other rate. So, a chart that is showing a bullish bias would be better suited for a bull call or bear put spread. You may republish this article on the condition that it is not edited and all html links to our website are kept intact. An option is a derivative, meaning its price is based on an underlying asset. If the stock goes up in price to $110 per share from $100, they can either buy the stock, or sell the option to someone else for the difference between the old price and the new price. As a result, a purchase will be made of an "at the money call" for the security. If the trader employs and options spread that uses call options, a bullish move would cause a delta of the call to increase. "Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. You can get the odds in your favor by buying options close to the strike. There is a lot more to consider when trading options and a lot more terminology you need to know then when trading stocks. Plus, nowadays most online options trading websites provides teleconference or even video conference facilities for you to communicate with your broker or client. Betting on the horse that has the better odds will not net as much money, but is more likely to make you a profit. The aim is to swap options with other traders before certain factors influence the market, or to get rid of underperforming options while still getting some profit out of them. Getting obsessed with potential profit lures many investors to options, but playing against the odds is likely to result in a loss.
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Article Source: http://www.articlesnatch.com
About the Author:Learn more about Stock Call Options Options Trading Research Stock Options Trading
How Do Stock Options Work - Covered Call Options - Future Trading 185
By: optionstradingdomain
The other alternative is to find a reliable website that can do the comparison for you. Remember that the quotes you see in such guides are not absolute. If you are looking for free online car insurance quotes, then you are in for a pleasant surprise. Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. With the explosion of the Internet and advances in computer programs and software, the need to wait for your health insurance quote results is virtually nonexistent. For example, one such company offered a 30 year old woman $250,000 coverage for less than $200 yearly. The cost of adding these items is also affordable, usually costing much less than a policy through an ordinary lender. The days of meeting with an insurance salesman are pretty much extinct. You also get discounts for the safety features of your car, such as air bags and anti-lock brakes. The question that I have for most people is "why would you want to invest in an insurance policy when you can invest elsewhere and get a higher interest rate?" If you're going to buy life insurance, buy life insurance, but if you want an interest bearing savings plan, you should see your banker or other financial advisor. A whole life insurance policy must pay out a benefit provided you fulfill your own part of the contract. Finally, since what you really want by buying from a low-load company is lower rates, you can still use an agent and get very affordable life insurance rates if you choose certain insurers. We really want the most value at the most competitive price. You Can Get Free Life Insurance Quotes At His Website or by clicking on Cheap Term Life Insurance. Let's take a look at the value you get and how you can get it at the most competitive rate... They generally have information that will help you get adequate coverage at great rates. There are many websites that can conduct a comparison on free online car insurance quotes for you. Even though I recommend this I also advise that you get quotes from other insurance agents. For those people who are above the age of fifty, there is a solution. Talk with them all and then decide on who will give not just the lowest rates, but the best price to value ratio. Also go to where you can get more info on your home insurance options including home owner flood insurance..home contents insurance, AARP home owner insurance and more... With the explosion of the Internet and advances in computer programs and software, the need to wait for your health insurance quote results is virtually nonexistent. Having an instant health insurance quote can make the task of comparing them easier as well. Take advantage of it and pay much less for superior coverage now. Many quotes ensure that you get lower rates and value. The fact remains that you will do better shopping if you shortlist and compare not less than three agents. Publishers can get unique versions of my articles by following any of the links above. Thus, it would be so much better to just go for comparison websites when in search for free online car insurance quotes. The cost of adding these items is also affordable, usually costing much less than a policy through an ordinary lender. You also have the option to have those results sent to your email for retrieval at your convenience so even if there is no hurry, you can feel secure in knowing they will be waiting in your inbox later. Their experience with past or present insurers will help you in the decision-making process. If you want to get the most coverage per premium dollar spent then whole life insurance is NOT for you. For 'Boomers especially, AARP Home Owners Insurance is a perfect way to secure home affordable home insurance.
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Article Source: http://www.articlesnatch.com
About the Author:Learn more about How Do Stock Options Work Covered Call Options Future Trading
The other alternative is to find a reliable website that can do the comparison for you. Remember that the quotes you see in such guides are not absolute. If you are looking for free online car insurance quotes, then you are in for a pleasant surprise. Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. With the explosion of the Internet and advances in computer programs and software, the need to wait for your health insurance quote results is virtually nonexistent. For example, one such company offered a 30 year old woman $250,000 coverage for less than $200 yearly. The cost of adding these items is also affordable, usually costing much less than a policy through an ordinary lender. The days of meeting with an insurance salesman are pretty much extinct. You also get discounts for the safety features of your car, such as air bags and anti-lock brakes. The question that I have for most people is "why would you want to invest in an insurance policy when you can invest elsewhere and get a higher interest rate?" If you're going to buy life insurance, buy life insurance, but if you want an interest bearing savings plan, you should see your banker or other financial advisor. A whole life insurance policy must pay out a benefit provided you fulfill your own part of the contract. Finally, since what you really want by buying from a low-load company is lower rates, you can still use an agent and get very affordable life insurance rates if you choose certain insurers. We really want the most value at the most competitive price. You Can Get Free Life Insurance Quotes At His Website or by clicking on Cheap Term Life Insurance. Let's take a look at the value you get and how you can get it at the most competitive rate... They generally have information that will help you get adequate coverage at great rates. There are many websites that can conduct a comparison on free online car insurance quotes for you. Even though I recommend this I also advise that you get quotes from other insurance agents. For those people who are above the age of fifty, there is a solution. Talk with them all and then decide on who will give not just the lowest rates, but the best price to value ratio. Also go to where you can get more info on your home insurance options including home owner flood insurance..home contents insurance, AARP home owner insurance and more... With the explosion of the Internet and advances in computer programs and software, the need to wait for your health insurance quote results is virtually nonexistent. Having an instant health insurance quote can make the task of comparing them easier as well. Take advantage of it and pay much less for superior coverage now. Many quotes ensure that you get lower rates and value. The fact remains that you will do better shopping if you shortlist and compare not less than three agents. Publishers can get unique versions of my articles by following any of the links above. Thus, it would be so much better to just go for comparison websites when in search for free online car insurance quotes. The cost of adding these items is also affordable, usually costing much less than a policy through an ordinary lender. You also have the option to have those results sent to your email for retrieval at your convenience so even if there is no hurry, you can feel secure in knowing they will be waiting in your inbox later. Their experience with past or present insurers will help you in the decision-making process. If you want to get the most coverage per premium dollar spent then whole life insurance is NOT for you. For 'Boomers especially, AARP Home Owners Insurance is a perfect way to secure home affordable home insurance.
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Article Source: http://www.articlesnatch.com
About the Author:Learn more about How Do Stock Options Work Covered Call Options Future Trading
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