TAG | Stocks
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The Basics of Investing: Asset Allocation and Diversification
0 Comments | Posted by Ash in Portfolio Management, Risk Management, The Basics
Asset Allocation
Asset Allocation is the process by which the total investble capital is distributed across different asset classes. As discussed in the previous article, asset classes are sets of assets that behave similarly and have similar characteristics, e.g. Stocks, Fixed Income Securities, Commodities and Cash (Cash Equivalents).
Investors typically do not invest all their money in [...]
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The Basics of Investing: Risk,Reward and Time Horizons
0 Comments | Posted by Ash in Risk Management, Stocks, The Basics
A position
In trader parlance, one takes a “long position” in an asset if he/she buys that asset and takes a “short position” if he/she borrows that asset and sells it.
The difference between investing and trading
Investors are people who buy assets (in this case, stocks) in anticipation of long term appreciation in their value. Traders are [...]
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The Basics of Investing through Stockbrokers
0 Comments | Posted by Ash in Stocks, The Basics
Buying/Selling stocks
Stocks are traded on stock exchanges. Individual investors generally need to make use of the services of a stock broker to buy/sell shares. Stock brokers carry out transactions on the behalf of clients for a commission. Individuals who want to transact in shares should open an account with a stock broker.
Bid-Ask Spread
Stock brokers [...]
