Investing in Stocks and Shares: A Step-By-Step Guide to Making Money on the Stock Market

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Overview

A Revised, Updated 7th Edition of this Bestselling Guide

If you have money to invest or a continuous surplus income, investing in stocks and shares can be the smart investment.

This book, first published in 1992 is one of the most enduring guides to investment in the stock market available and has been maintained by a professional long-term investor. It explains in plain English all there is to know about what affects share prices and how to avoid unnecessary risks, and gives ...

See more details below

Overview

A Revised, Updated 7th Edition of this Bestselling Guide

If you have money to invest or a continuous surplus income, investing in stocks and shares can be the smart investment.

This book, first published in 1992 is one of the most enduring guides to investment in the stock market available and has been maintained by a professional long-term investor. It explains in plain English all there is to know about what affects share prices and how to avoid unnecessary risks, and gives step-by-step guidance on:

How to Trade on the Stock Market, Whether it's up or Down

Stockmarket Investment Strategies

Investing in Traded options and Futures

Bonds, Gilts and Interest-Bearing Deposits

'An easy to understand guide to the way the stock market works, and how the investor should go about setting up a successful investment strategy.' What Investment

Product Details

  • ISBN-13: 9781845282219
  • Publisher: How To Books
  • Publication date: 8/15/2009
  • Edition description: Revised
  • Edition number: 7
  • Pages: 246
  • Product dimensions: 5.30 (w) x 8.40 (h) x 0.70 (d)

Meet the Author

Dr John White is an experienced and successful personal investor and director of an investment company. He has also written a range of chart-analysis software for stock market investment.

Table of Contents

List of illustrations viii

Preface ix

Introduction 1

1 Why buy shares? 3

The benefits 3

Why do shares rise in value? 9

Are shares right for you? 11

A history of shares 17

The difficulty of selecting shares 26

2 An explanation of shares 28

Basic information 28

Why come to market? 34

More about shares 35

Capital versus income 37

The stockmarket indices 40

Marketability of shares 42

Market subdivisions 47

Share sectors 47

Types of share 48

3 Factors affecting the price of a share 57

Share dilution 57

The perception of share values 62

The movement of markets 68

The importance of timing 71

Company bids and takeovers 72

4 Avoiding undue risk 76

Avoiding local risk 76

Overseas investments 77

Pooled funds 79

The institutions 89

The zero sum game 89

5 Dealing in shares 92

Certificates or nominee account? 92

The broker 93

Taurus/Crest 98

A summary of charges 102

The mechanics of share dealing 104

When to buy and when to sell 113

The Coppock Indicator 114

6 Stockmarket strategies 116

Some stockmarket investment strategies 116

Modern portfolio theory/risk management 121

The Logical Investment Strategy 122

Summary of the Logical Investment Strategy 124

Construction of a wishlist 126

Construction of a hitlist 128

Valuation of shares 128

Performance assessment 129

7 Investing in traded options and futures 131

Introduction to options 131

Interpretation of charts 141

Futures 146

Other derivatives 146

8 Bonds/gilts/interest-bearing deposits 147

Introduction to bonds and gilts 147

Tax implications of purchases of bonds and gilts 157

Strategies for buying gilts 159

How to buy and sell gilts161

How to buy and sell bonds 162

9 Six typical case studies 163

Conclusion 173

Appendices

1 Government privatisations 174

2 The Black-Scholes Model for traded options 176

3 Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs) 178

4 Individual Savings Accounts (ISAs) 179

5 The price of gold 184

6 Split capital investment trusts 186

7 Business and Enterprise Schemes 188

8 Permanent Income Bearing Shares (PIBS) 192

9 Bulletin Board/SEATS 195

10 Value investment 196

11 FRS-3: new accounting rules 198

12 AIM/PLUS 199

13 Emerging markets 201

14 Order-driven markets/SETS 202

15 The Internet 204

16 Capital Gains Tax (CGT) 206

17 Reinvestment of dividends 213

18 Derivatives 215

19 Alternative investments 219

20 Inland Revenue stamp offices 220

21 Self-invested pension plans (SIPPs) 221

Glossary 225

Further reading 241

Useful addresses 242

Index 244

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