Dave:                                    00:35                     All right folks, we’ll welcome to the Investing for Beginners podcast. This will be our podcast episode 100 Ooh; we made it. That’s awesome. All right, so today we’re going to talk about the basics of spinoffs and acquisitions, and we’re going to, we’ve talked a lot about these from the aspect of the company buying, but today we’re going to kind of go over some generalities of the other side. So the company that’s being acquired or spun off. So Andrew, why don’t you go ahead and take us off. I know we have a listener question regarding this as well as some are our general thoughts on this.
Consult a reputable broker, banker, or investment adviser if you need to. Never stop learning, and continue to read as many books and articles as possible written by experts who have successfully invested in the types of markets in which you have an interest. You will also want to read articles helping you with the emotional and psychological aspects of investing, to help you deal with the ups and downs of participating in the stock market. It is important for you to know how to make the smartest choices possible when investing in stocks, and even when you do make wise decisions you should be prepared to deal with losses in the event that they occur.

That's entirely up to you, but it's good to start small. Don't invest more than you can afford to lose. Each brokerage has its own requirements for opening a trading account. TD Ameritrade, for instance, has no minimum deposit requirement at all, so you could get started with just the price of one share of stock. Most discount brokers let you start with very little money. Search "discount brokers" online.

But before you start investing, remember, reaching your finance goals takes time. If you think you might need that $1,000 in a few months, adding more money to your rainy day fund is the best thing you can do. And never invest anything you can't tolerate the thought of possibly losing; after all, investing is a risk. If you have an extra $1,000 to spare, consider placing it into the following categories.


When looking for an advisor, choose one who charges you a flat fee for advice, not one who is paid a commission by the vendor of an investment product. A fee-based advisor will retain you as a happy client only if his/her advice works out well for you. A commission-based advisor's success is based on selling you a product, regardless of how well that product performs for you. Construction Assassination GTA V
Benjamin - The price of the stock does not matter. If you invest $10,000 into a stock trading at $5 or a stock trading at $100, your gain will still be the same. A 10% rise in either stock will give you $1,000 in unrealized gains (profits you have not realized because you have yet to sell the stock). So, find the best stock, regardless of its per share price. - Charles Rotblut

One of the keys to investing money to build wealth is by saving more money to invest. By increasing your amount invested on an automatic and yearly basis you will create discipline and consistency without having to remember on your own. It is a great strategy to use when starting out, when you have limited knowledge about how to add to your investments. In the long term, you will wake up one day and be surprised how much money you have in your account. A fundamental truth of Investing 101 is to start as early as possible and keep increasing how much you invest every year. Then you will be on your way to creating lasting wealth. Start today and open an account!


Hiring human brokers to make phone calls and sell clients on investing is costly. Because discount brokers avoid this cost, they can pass on the advantage to customers in the form of lower commissions. A simple rule in the financial world is that clients pay the brokers’ expenses, so the lower the brokers’ expenses, the lower the fees and commissions.
Diversify. Diversifying your portfolio is one of the most important things that you can do, because it diminishes your risk. Think of it this way: If you were to invest $5 in each of 20 different companies, all of the companies would have to go out of business before you would lose all your money. If you invested the same $100 in just one company, only that company would have to fail for all your money to disappear. Thus, diversified investments "hedge" against each other and keep you from losing lots of money because of the poor performance of a few companies.
We think a low minimum to open an account is a real advantage when you’re just starting out. That’s because you can start with…say, $500, and then add to your balance over time with monthly or annual contributions to your account. For most people, the hardest step in investing is just getting started, so we prefer brokers who have a low minimum to open an account and place a trade, so as to avoid a potential roadblock on the way to saving and investing.
Individual stocks. We won’t sugarcoat it: Buying individual stocks requires a fair amount of research, ongoing diligence and a stomach for risk. Those aren’t things that most retirement savers want to deal with. In fact, many 401(k) plans don’t even allow participants to buy individual stocks within the plan. If buying stocks sounds exciting to you, we recommend devoting no more than 10% of your retirement portfolio’s overall value to them.
In the case of GM, such a search would inform you that General Motors is tickered "NYSE: GM," which means it's listed on the New York Stock Exchange as ticker "GM"; whereas Disney is tickered "NYSE: DIS," also on the NYSE, as "DIS." A stock on the Nasdaq Stock Exchange would be a little different, with a ticker in the format "Nasdaq: XXXX" with anywhere from one to five letters.
Other key clues to look out for are how long the management team has been serving the company. Longevity is often a good sign that the folks in charge are doing something right. You'll also want a management team that's innovative and willing to take risks, but not too many risks. By reading up on a company and its history, you can get a sense of the sort of decisions its management team has made, and how those decisions have panned out.

Over the past few months I have had the opportunity to talk with three first-time investors. In addition to my friend's daughter mentioned above, I've also spoken with two friends in their twenties. One had never invested. The other had a 403(b), but really no idea how to create an investment plan or how to evaluate the mutual funds in his retirement account.

You can think of investing in bonds as lending money to the government or a corporation, and in exchange, they pay you interest. Treasury bonds are very “safe” in that they are backed-up by the U.S. government. They also pay very little to hold them. Corporate bonds pay more interest, but they are more risky because just like stocks, the company could go bankrupt.
Worth noting: A 401(k) is a type of investment account, and if you’re participating in one, you may already be invested in stocks, likely through mutual funds. However, a 401(k) won’t offer you access to individual stocks, and your choice in mutual funds will likely be quite limited. Employer matching dollars make it worth contributing despite a limited investment selection, but once you’re contributing enough to earn that match, you can consider investing through other accounts.
Meaning is something we’ve touched on already, but it’s also something that many investors sadly overlook. If a company has meaning to you – if you are inspired by and interested in what they do – you are going to be more likely to understand that company, more motivated to research them, and thus more likely to make wise decisions about when they should be bought and sold.
Overall commission costs can also be affected by new customer promotions. Brokers may give you a chunk of free trades, based on your deposit amount. If your deposit can get you a substantial number of free trades, that can write off otherwise higher per-commission costs. Ally Invest offers small incentives for deposits as low as $500. Fidelity Investments, meanwhile, has a higher barrier for entry — it takes a $50,000 deposit, but then you'll get 300 free trades.

You've probably heard of stocks in the context of investing, but how do they actually work? When you buy stocks, you're essentially buying a share of ownership in a given company. Stocks are sold as individual shares, and the more you own, the greater a stake in a company you'll get. Furthermore, when you buy stocks, you get certain rights as a shareholder, which could include the right to receive dividend payments and voting rights at shareholder meetings.

Let's start with this basic truth: At its core, investing is about laying out money today with the expectation of getting more money back in the future — which, accounting for time, adjusting for risk, and factoring in inflation, results in a satisfactory compound annual growth rate, particularly as compared to standards considered a "good" investment.
One disadvantage of a broker like Betterment is that investing in the account is limited. You buy into either a basket of stock-related ETFs, or a basket of bond ETFs. This is excellent when first starting out, but when you are ready to spread your capital around the investment universe, and particularly into individual stocks, you’ll need to look for a full-service broker to meet your needs.
In addition to attractive pricing, Ally offers a quality platform that gives you access to the entire universe of stocks and ETFs. Where some discount brokers focus on only one kind of trader (for example, options traders or high-net-worth investors), Ally Invest provides an excellent experience for investors of all kinds. A focus on discounted costs can sometimes be a red flag for quality, but Ally Invest truly delivers with sophisticated calculators, profit-loss estimators, and more. Ally Invest also offers a robust research library that incorporates visual slides and interactive media into its market data.
The stock market rises over the long term. From 1871 to 2014, the S&P 500's compound annual growth rate was 9.77%, a rate of return many investors would find attractive. The challenge is to stay invested long-term while weathering the ups and downs in order to achieve this average: the standard deviation for this period was 19.60%, which means some years saw returns as high as 29.37% while other years experienced losses as large as 9.83%. [10] Set your sights on the long term, not the short. If you're worried about all the dips along the way, find a graphical representation of the stock market over the years and hang it somewhere you can see whenever the market is undergoing its inevitable–and temporary–declines.
The main difference between ETFs and index funds is that rather than carrying a minimum investment, ETFs are traded throughout the day and investors buy them for a share price, which like a stock price, can fluctuate. That share price is essentially the ETF’s investment minimum, and depending on the fund, it can range from under $100 to $300 or more.

One way to “beat” the market is to invest on a regular basis. Instead of trying to time when the market is high or low, regular investing — known as dollar-cost averaging — will guarantee you’ll buy more shares when the market is low and fewer when it’s high. Over the long haul, this type of investing can make temporary market declines a good thing.
The truth of the matter is that the stock market has always been more volatile than the bond market. It's also, however, historically delivered much stronger returns. Between 1928 and 2010, stocks averaged an 11.3% return, while bonds averaged just 5.28%. So let's say you have $10,000 to invest over a 30-year period, and you put it in bonds averaging 5.28%. After three decades, you'll have about $47,000. But if you were to put that same amount of money in stocks instead and score an average 11.3% return, you'd be sitting on $248,000 after 30 years.
The other way to make money on stocks is to hold your shares and collect dividends. A dividend is a portion of a company's earnings that's distributed to shareholders. Dividends are typically paid quarterly, though companies don't have to pay them. That said, if you buy stocks issued by a company with a long history of paying dividends, you can come to expect a pretty reliable income stream. For example, today, Verizon's (NYSE:VZ) dividend yields 5%, which means that for every $100 you have invested in shares, you'd get back $5.
Andrew:                              01:12                     Yeah, so that fits right in and yeah, episode 100 let’s do something not special at all and just treat it like any other episode. I’m down for that. Had a question from a  listener to the podcast, and this is about acquisitions. So Hi Andrew. Just started listening to your podcast and the impulsively dove into the stock market through the Robin Hood and Mobile App.
If you’re considering getting started investing in collectibles, make sure you do a lot of homework and get educated first. This is also an area where there are a lot of investing scams. It’s also important to remember that collectible investment gains are taxed at a much higher rate that other investments – which is your ordinary income tax rate (not the special 20% for capital gains).
Worth noting: A 401(k) is a type of investment account, and if you’re participating in one, you may already be invested in stocks, likely through mutual funds. However, a 401(k) won’t offer you access to individual stocks, and your choice in mutual funds will likely be quite limited. Employer matching dollars make it worth contributing despite a limited investment selection, but once you’re contributing enough to earn that match, you can consider investing through other accounts.
Amelia Josephson Amelia Josephson is a writer passionate about covering financial literacy topics. Her areas of expertise include retirement and home buying. Amelia's work has appeared across the web, including on AOL, CBS News and The Simple Dollar. She holds degrees from Columbia and Oxford. Originally from Alaska, Amelia now calls Brooklyn home.
John Jagerson is a CFA and CMT charter holder and a founder of Learning Markets, which provides analysis and education for individual and professional investors. He is an author or co-author of five books on investing, currencies, bonds, and stocks. John has appeared in outlets like Forbes.com, BBC Radio, Nasdaq.com, and CBS for his financial strategy expertise. After graduating with a B.S. in Business from Utah Valley University, John completed the PLD program at Harvard Business School. Once the markets close each day, he can be found back on his mountain bike or in his running shoes on the trails of the Wasatch Mountains near his home.
In picking those individual stocks, there are many different yet equally promising strategies you can follow. Some investors concentrate on dividend-paying stocks to provide them with relative safety and security from their stock portfolio, along with regular income that they can use either to cover cash needs or to reinvest into buying additional shares of stock. Value investing involves finding underappreciated stocks whose prices are at a discount to the true intrinsic value of the underlying business, and well-known investors like Warren Buffett have used value-investing tenets to produce strong returns.
Most investment advisers recommend that you save at least ten times your peak salary for retirement.[4] This will allow you to retire on about 40% of your peak pre-retirement annual income, using the 4% safe withdrawal rule.[5] For example, if you retire at a salary of $80,000, you should strive for at least $800,000 saved by retirement, which will provide you with $32,000 annual income at retirement, then adjusted annually for inflation.
Investing for beginners starts with figuring out your financial goals – do you want short-term cash for something like a car, or do you want to invest your money long-term for something like a college fund? Your timeline will help you determine which financial vehicles you should consider, whether it is in the form of something like stocks, mutual funds or money market account. You should also decide whether you want to work with a professional broker or financial adviser who can help you create your financial portfolio. As with any financial decision, what you do with your money is ultimately up to you, so investing for beginners is something that you’ll be able to customize to best suit your financial goals.

By far and away the biggest question every beginner wants to know the answer to is what stocks are best for investing in? If you’re hoping this is where you find a list of stocks to invest in, then you’re about to be let down! There is no magic list of what stocks to invest in. (And be wary of advice from anyone who says otherwise!) Instead, there are a few things you can look for in stocks and shares that make them worth your money.
Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.
With the right approach, stocks are an appropriate investment for people of almost all ages. Generally speaking, the younger you are, the more of your money you should put into stocks, since you have time to ride out the market's ups and downs. As you get older, it's usually a good idea to shift some investments out of stocks and into safer vehicles, like bonds. But even if you're retired or close to retirement, stocks still have a place in your portfolio.
Make a list of things you want. To set your goals, you’ll need to have an idea of what things or experiences you want to have in your life that require money. For example, what lifestyle do you want to have once you retire? Do you enjoy traveling, nice cars, or fine dining? Do you have only modest needs? Use this list to help you set your goals in the next step. [1]
When investing, look to get in with stocks in the areas you typically follow and have an interest in. If you’re already reading news and keeping up on these things anyway, it’ll make it that much easier to keep up on your investments. If you have expertise through interests or work, you likely know enough about the sector to make intelligent investments.
When it comes to investing money, we have several choices at our disposal. But those looking for the best returns would be wise to consider the stock market. It's estimated that 54% of Americans have stocks in their portfolios, and if you're not part of that statistic, you're missing out on a key opportunity to accumulate wealth, whether it be for retirement or another long-term goal you might have.
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Why are voting rights important? Often, the matters you'll get to vote on will impact the value of your shares, either directly or indirectly. For example, if you're invested in a company proposing a stock split, the value of each share you own will be reduced as a result of that move (though you'll get double the number of shares) -- that's something you'll want a voice in. Similarly, you'll get to vote on things such as mergers and acquisitions and major structural changes within a company -- things that can impact cash flow and earnings, and therefore cause the value of your stocks to fluctuate. 
During your wealth accumulation stage, consider over-weighing stocks that pay low or no dividends. Lower yielding stocks tend to be safer, have greater growth potential, eventually leading to bigger dividends later, and save you on taxes (by allowing you to defer tax on unrealized capital gains rather than paying tax on dividend, a form of forced distribution).[38]

Another key thing to look at is a company's earnings per share, which represents the portion of a company's profit allocated to each share of its common stock. Earnings can cause stock prices to rise, and when they do, investors make money. If a company has high earnings per share, it means it has more money available to either grow the business or distribute as dividends. That said, earnings should always be evaluated in the context of the industry you're dealing with. If you're looking at a company whose earnings per share is $2, but a competing company has earnings per share of $6, that's a potential red flag. That said, this is only one piece of the total puzzle.  
When you place an order for a stock, you specify how long the brokerage firm should try to fill your order before giving up and canceling it. Order timing is generally less important with market orders because they tend to be filled quickly, but it can be an important consideration for other order types, such as limit orders. The two most common order timing options are day only and good-till-canceled.

How you implement these strategies depends on your personal preferences and appetite for risk. Some investors prefer one strategy and concentrate on finding a diverse set of stocks all of which embrace that particular philosophy. Others instead choose to use multiple strategies in their efforts to diversify their portfolios, and that can involve owning several different kinds of stocks. Either method can produce the long-term results you want as long as you're comfortable with the overall investing plan you choose and stick with it.


These options can — and should — supplement your employer-sponsored retirement account. If your employer offers one, you’ll be able to contribute a percentage of your salary each pay period to your 401(k). In most cases, you choose the mix of assets you invest your 401(k) money in, depending on your tolerance for risk. Some employers will match your contributions with company funds — extra money you’ll usually have access to once you’ve stayed at the company for a certain amount of time.
* Merrill Edge was one of 14 brokers evaluated in the Barron's 2019 Best Online Broker Survey, February 22, 2019. Barron's evaluated firms in — the trading platform, usability, mobile, research, education, news, information, international offerings and retirement/divided-related services—to rate the firms. Merrill Edge earned an overall score of 28 out of a possible 50. All costs assume customer has a minimum of $100,000 in assets with broker. Occasional Trader: six stock and two options trades per month. Assumes customer qualifies for 100 $0 stock trades per month through Preferred Rewards Platinum Honors. If not, occasional fee is $70.60 per month. Learn more at http://webreprints.djreprints.com/55958.html. Barron's is a trademark of Dow Jones & Co., L.P. All rights reserved. Reprinted with permission of Barron's. Rankings and recognition from Barron's are no guarantee of future investment success and do not ensure that a current or prospective client will experience a higher level of performance results and such rankings should not be construed as an endorsement.
You editors of these financial info pieces should STOP saying that tax deferred means NO taxes incurred as you did in the last sentence. I have read this over and over in various info articles and it is NOT correct. You will pay the taxes, just not annually, you wait until you take distributions; but you will pay taxes on tax deferred accounts such as IRA at some point. To DEFER is to DELAY or POSTPONE not eliminate! stockinvestmenttips.wmv
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