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Post by Ebener 12 on Nov 28, 2008 1:37:45 GMT -5
So I recently put a decent amount of money from my college fund in the stock market, and am continuing to learn more about it everyday. I was wondering if anyone has any books, sites, or anything to recommend to me. I'm just looking ot become more knowledgeable in all aspects of it. So far I've done well (1 week LOL) but I really enjoy it. I use eTrade.com
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Post by Gossip Girl on Nov 28, 2008 1:42:31 GMT -5
If you don't mind me asking, what stocks did you invest in?
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Post by Gossip Girl on Nov 28, 2008 1:43:11 GMT -5
Also what is the deal with etrade. What are their commisions/ charges per transaction?
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Post by Ebener 12 on Nov 28, 2008 1:45:30 GMT -5
Well it all depends on how many transactions you make in a quarter. For me, right now it is a $12.99 commission.
I've invested in John Deere (most of the money) and some in GM and THC.
John Deere has gained me a ton of money just in the last week, and GM has gone on fire too. I bought the GM stock before they said it was likely they would get the bailout. Now they are saying since they mapped out their financial plans to the gov't, they are likely to get the bailout. And if/when they get it, that stock is going to skyrocket.
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Post by Gossip Girl on Nov 28, 2008 1:50:50 GMT -5
What do they define as a commision?
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Post by Ebener 12 on Nov 28, 2008 1:52:53 GMT -5
Do you mean like when do you have to pay commission? Anytime you buy/sell shares of your stock. Like say I have 50 shares of John Deere. It cost me $12.99 to buy those 50 shares. If I wanted to sell 20 of them now, I would have to pay $12.99. Then I would have to pay $12.99 later when I sold the other 30.
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Post by Gossip Girl on Nov 28, 2008 1:56:03 GMT -5
Do you mean like when do you have to pay commission? Anytime you buy/sell shares of your stock. Like say I have 50 shares of John Deere. It cost me $12.99 to buy those 50 shares. If I wanted to sell 20 of them now, I would have to pay $12.99. Then I would have to pay $12.99 later when I sold the other 30. That sucks if you are an independent investor just trying to make a few bucks and you have to pay those sort of commisions. It makes sense for you though if you put a lot of money into it.
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aar
All-Star
Seattle SuperSonics
Posts: 6,306
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Post by aar on Nov 28, 2008 1:56:23 GMT -5
Why would you invest in GM?
Right now, Sirius radio shares are dirt cheap and I'd recommend giving them a look. Starbucks will eventually rebound if you're patient as well.
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Post by Ebener 12 on Nov 28, 2008 1:58:15 GMT -5
Why would you invest in GM? Right now, Sirius radio shares are dirt cheap and I'd recommend giving them a look. Starbucks will eventually rebound if you're patient as well. Why not invest in GM? Check my post, let me know what your thinking.
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Post by Gossip Girl on Nov 28, 2008 2:02:24 GMT -5
Don't really have any books to recommend to you, Jordan. My finance class has taught me a lot and I watch the closing bell nearly everyday. It's kind of like learning a new language. If you are around it long enough, you'll start to understand it. Familiarize yourself with stock valuation and other shit
Also did you buy common stock or preferred stock?
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Post by Ebener 12 on Nov 28, 2008 2:04:54 GMT -5
Well they didn't really give a choice but it is common stock.
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Post by Gossip Girl on Nov 28, 2008 2:05:39 GMT -5
Preferred Stock sucks
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Post by Ebener 12 on Nov 28, 2008 2:07:48 GMT -5
What is the main difference? Just that you have more "actual" ownership of the stock instead of just paper confirmation?
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Post by Gossip Girl on Nov 28, 2008 2:15:51 GMT -5
The difference is how dividends are paid. Preferred Stock is a set amount of money, say $1.00. That $1.00 needs to paid before the common stock holders get paid, but the common stock owners get all the leftover money to be paid out in dividends. However, if a firm does not pay dividends one year the preferred stock owners are owed the dollar from last year plus the dollar from the current year before the company pays out the common stock holders. So basically if a company skips a dividend payment the preferred stock holders are compensated for that year, while the common stock holders are not.
The Common Stock holders are the actual "owners" of the firm and can vote on company issues based on the percentage that they own the firm. There are more specific rules to this, but I won't get into detail. Preferred stock holders do not have voting rights.
To make a long story short, in times of even somewhat economic decency, the common stock holders get paid out more than the preferred because they get all the money leftover after paying the preferred stock holders.
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Post by Johnny "B. Good" Stamos on Nov 28, 2008 2:38:21 GMT -5
Yeee i learned that shit in my accounting! Halla!
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