Global Financial Crisis – The Worst Thing You Can Do

Worst Things You Can Do In Global Financial Crisis

Worst Things You Can Do In Global Financial CrisisThe worst thing that you can do in a global financial crisis is not sticking to your plan. In 2008, we saw far too many people pull their investments out of the stock market during the recession at the lowest points.

This will lead you to selling stocks and mutual funds when prices are low and having to repurchase your investments when times are better and ultimately prices are higher. The best thing you can do is to continue on your financial plan that you established.

Worst Things You Can Do In Global Financial Crisis

A Declining Market Is Not The Time To Sell

Trying to time the stock market’s rise and fall can cost investors thousands in lost profits. Inevitability, timing the market does not work and you enter and exit the stock market at preciously the wrong time costing you profits or increasing your losses.

Not only do you have to time your exit when you are timing the stock market, but you also have to time your reentry back into the stock market as well.

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You Need Enough Insurance to Rebuild Completely After a Claim

You Need Enough Insurance to Rebuild Completely After a Claim

Far too many people do not have enough home insurance to rebuild their homes completely if they are destroyed or severely damaged. Many people forget to factor in inflation when they are faced with the possibility of having to completely rebuild their homes after a natural disaster or fire. This is a particularly devastating hazard for someone who purchased their home many years ago. Your home insurance should cover the cost to rebuild your house at today’s market prices for materials and labor. Many homes that were built several years ago still have the same amount of homeowners insurance on them as when the owners originally bought them. You should purchase either guaranteed replacement cost or extended replacement cost. Guaranteed … Read more

Should You Buy Penny Stocks? Why You Should Resist the Temptation!

penny stock

Many investors are drawn to buy penny stocks because they believe they can obtain a sizable gain on their investment. Therefore, the term, penny stock, is often synonymous with a micro-cap stock. Micro-cap stocks have a market capitalization which is the total market value of a company’s shares that are outstanding of $50 million to $300 million. Companies with market capitalizations of $50 million or less are hazardous and are classified as nano caps. Cap is short for capitalization. Some investors are drawn to the idea of quick, sizable profits when they invest in penny stocks. After all, it is pretty tempting to think that you can buy 50,000 shares with only a $500 investment. But, regardless of how small … Read more

Are You Fighting An Uphill Battle With Your Finances?

How to Stop Facing an Uphill Battle with Your Finances

Have you ever noticed that every kid on the playground always wants to go up the slide backwards? I think that is in our human nature to want to go against the grain like that. I think that it adds helps to instill our rebel mentality that helps make us uniquely American even at such a young age. But, are you fighting the same uphill battle against the grain with your finances as well? Many of us are.We are on a cycle of debt, living paycheck to paycheck, and often do not know how to get off the hamster wheel that makes up our lives. It is possible to stop going against the grain. Here are some great action steps … Read more

What Is A Stock Split? And Should You Trade Before One?

What Is A Stock Split?

get in on the hottest iposA stock split is a tactical decision and action made by any publicly traded company’s board of directors that increases the number of existing shares by splitting or dividing the shares into more shares.

What Is A Stock Split?

At first glance, it is a positive thing to investors and stock shareholders since their number of shares owned will increase. But, in reality, a stock split is not a value adding event. It doesn’t detract the value either.

A stock split is just an accounting sleight of hand that increases the number of shares while maintaining the same overall value. The underlying value of a shareholder’s share is not changed at all by a stock split.

Nevertheless, a stock split is usually conducted at a time where the value of certain shares become way too high for new investors or are convincingly higher than other similar companies’ stock share prices.

This way, anyone who wishes to buy shares from a company is able to do so at lower costs since each share’s value is divided in certain multiples.

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Why Do Companies Carry So Much Cash On Their Balance Sheets?

A balance sheet of a company is where records of how much money the company has, how much debt it owes, and what is the remaining amount for the stockholders. It is a financial statement that lets investors know where the company stands with its financial accounts. If you want to keep track of how well the company you have invested in is doing and if they are in good status, you might want to check out those companies’ balance sheets. How Balance Sheets Are Constructed But if you are new to looking at these things, it is important to know something about balance sheets. The first thing you will see and notice in a balance sheet is the asset … Read more