Preparing For A Career As A Broker Or Trader

Are you having trouble deciding between a career as a stockbroker or a trader? Each career involves trading securities, but the nature of each varies greatly and these variations could make all the difference when it comes to determining which career will suit you best.

In this article, we'll take a look at these differences as well as the preparation required to pursue either career.

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Traders And Investors' Roles In The Marketplace

Many people use the words "trading" and "investing" interchangeably when, in reality, they are two very different activities. While both traders and investors participate in the same marketplace, they perform two very different tasks using very different strategies.

Both of these parties are necessary, however, for the market to function smoothly. This article will take a look at both parties and the strategies that they use to make a profit in the marketplace

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When To Short A Stock

Most investors by nature will "go long" when they buy stocks. Few investors naturally will short stocks (or bet on their decline) because they really don't know what to look for.

Some investors see the shorting process as somewhat counter-intuitive to the traditional investing process since many stocks do appreciate over time. That said, there is a lot of money to be made by shorting, and in this article, we'll give you a list of signs that show when a stock might be ripe for a fall.

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Taking The Lead In The Interview Dance

Fred Astaire is one of the most celebrated dancers ever. But have you ever noticed that Ginger Rogers had to follow him, moving backwards and in high heels?

Like partner dancing, an interview has a "leader" and a "follower". It's the role of the hiring manager - as leader - to set the tone of the interview and guide you on its structure. But you are Ginger Rogers. It's your role to listen carefully, take the subtle cues given and follow that lead expertly. Landing a job in the competitive financial industry can take some maneuvering. Read on to learn the steps that will help you glide effortlessly through your next big job interview.

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The "True" Cost of Stock Options

How to value employee stock options (ESO)? This is possibly the central issue in the debate on whether these options should be expensed. According to basic accounting rules, if a value can be placed on this form of compensation, it should be expensed. Proponents of expensing employee stock options say there are many models that can be used to place a value on options.

Opponents argue these models are not applicable to employee stock options. This article will take a look at the argument of the opponents and then explore the possibility of a different approach to determining the cost of employee stock options.

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Getting To Know Business Models

When analyzing companies, investors can easily get caught up in details such as performance figures, stock ratios and valuation tools while forgetting a more basic question: how does the company actually make money?

A solid business model remains the bedrock of every successful investment. To distinguish the great companies from the losers, investors should learn how to describe and evaluate companies' business models.

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How Influential Economists Changed Our History

There is an old joke that is often told about economists: Three economists are hunting ducks. The first shoots 20 meters ahead of the ducks, the second shoots 20 meters behind the ducks, and the third says, "Great job! We got them!"

All jokes aside, there are many economists that do incredible jobs and there are some who have made contributions in financial history that crossed over into many aspects of social history as well. In this article, we'll show you five of these economists and explain their impact on society

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The Importance Of Dividends

"The only thing that gives me pleasure is to see my dividend coming in." --John D. Rockefeller.

One of the simplest ways for companies to communicate financial well-being and shareholder value is to say "the dividend check is in the mail." Dividends, those cash distributions that many companies pay out regularly to shareholders from earnings, send a clear, powerful message about future prospects and performance. A company's willingness and ability to pay steady dividends over time--and its power to increase them--provide good clues about its fundamentals.

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Go International With Foreign Index Funds

International markets, through their index funds, offer excellent investment opportunities with parallel risks. Investors can gain appropriate exposure to these opportunities while mitigating the risks through several viable investment options.

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When Insiders Buy, Should Investors Join Them?

Tips for beating the market tend to come and go quickly, but one has held up extremely well: if executives, directors or others with inside knowledge of a public company are buying or selling shares, investors should consider doing the same thing.

Indeed, much research shows that insider trading activity is a valuable barometer of broad shifts in market and sector sentiment. But, before chasing each insider move, outsiders need to consider the factors that dictate the timing of trades and the factors that conceal the motivations.

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Dividend Facts You May Not Know

Money For Nothing" is not only the title of a song by Dire Straits in the '80s, but also the feeling many investors get when they receive a dividend. All you have to do is buy shares in the right company and you'll receive some of its earnings. How exciting is that? However, despite the advantage, there are several implications involved in the paying and receiving of dividends that the casual investor may not be aware of. This article will explain several of these. But first, let's begin with a short primer.

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Master Your Trading Mindtraps

The popularization of speculative trading activity in the financial markets, partly due to the development of retail trading solutions offered on the internet, has created a new population of traders in the market. Most of these traders are non-professionals that are attracted by the potential to generate revenue quickly.

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Three Kinds Of Analysts And What You Need To Know About Them

There are several types of "analysts" on Wall Street, and they produce different kinds of reports because they have different kinds of clients. This article will define the three main categories of analysts and briefly touch on analyst independence.

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Absa Economic Research

The January Absa/COSAB survey on Trade Conditions is now available, it is indexed in the Trade Conditions section.
The first quarter Economic Perspective and Ekonomiese Perspektief are available, they are indexed in the Economic Perspective section.
The quarterly Residential Property Perspective, it is indexed in the Property Research section

Economic commentary

Following the European option

The relative merits of the European and American ways of life are often debated, with the European emphasis on social cohesion being contrasted with the greater emphasis on individualism in the USA.

In view of the relative performance of the two economies in recent years, the tendency among commentators has generally been to pronounce the American model superior because of its alleged greater encouragement of entrepreneurship and personal effort. The European reply has been that one should only judge questions such as these over the long run, and that the European model will prove to be more enduring than the American one.

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How much do shares really cost?

When buying shares you don't just pay the price of those shares there are lots of hidden costs.For example, if you bought a 1 000 Standard Bank shares at R70 each with Standard Bank online, you would pay either 0,7% of the value of the shares, or R89, whichever is the greater. On top of that you would pay UST (Uncertificated Securities Tax) and a Strate (share transaction totally electronic) fee


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Be your own investor…

…with a few clicks of a mouse

The online trading function makes the trading of shares as easy as pie, says Standard Bank. Many potential investors may think twice about buying and selling shares over the internet.

They may be hesitant to accept the notion that, with a few clicks of a mouse, one can start an investment portfolio by buying and selling shares on the JSE. But, if you know your way around internet banking and whiz through your account payments at the end of each month, then online trading is a great way to start investing. Richard Seddon, head of Online at Standard Bank compares internet banking to trading online

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Buy on the rumour, sell on the fact

How does company news influence returns and share prices?

How does company news influence returns and share prices? Well with everybody looking for an advantage over everybody else, rumours are bound to surface at any given time.You don't have to be plugged into an internet chat room or read the Sunday tabloids to pick up a spicy rumour.

The cliché of the share tip picked up at a dinner party or around a braai is real. It can happen anywhere. Investors need to be on their guard in determining what is rumour and what is fact. Under the disclosure requirements of the JSE, South African listed companies must inform the market as soon as practicable of any news likely to have a material effect on their share price.

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The Stop-Loss Order - Make Sure You Use It

What with so many facets to look at and brood over when weighing a stock buy, it's easy to forget about the little things. The stop-loss order is one of those little things, but it can also make the world of difference. Just about everybody can benefit from this tool in some way. Read on to find out why.

What Is a Stop-loss Order?It is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let's say you just purchased Microsoft (MSFT) at $50 per share. Right after buying the stock you enter a stop-loss order for $45. This means that if the stock falls below $45, your shares will then be sold at the prevailing market price.

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What Is A Small Cap?

The meanings of "big cap" and "small cap" are generally understood by their names: big-cap stocks are shares of larger companies and small-cap stocks are shares of smaller companies. Labels like these, however, are often misleading. If you don't realize how big "small-cap" stocks have become, you'll miss some good investment opportunities.

Small-cap stocks are often cited as good investments due to their low valuations and potential to grow into big-cap stocks, but the definition of small cap has changed over time. What was considered a big-cap stock in 1980 is a small-cap stock today. This article will define the "caps" and provide additional information that will help investors understand terms that are often taken for granted.

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