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Articles and Information about Stocks and Mutual FundsCSchro4der Home | Institutions | LoansColleges and Universities | Search Engines Stock Market Investing Odds
The greatest stock market myth is the idea that investing in stocks is a form of gambling! The financial markets are often compared to a casino. Put some money on X stock and you might as well be playing craps! If that's your impression, and it's keeping you out of the markets, consider this:If investing is organized gambling, it's one of the rare kinds where the odds are stacked in your favor! Why is that? Corporate profits are the key to understanding the investor's edge. By buying a share of stock gives its holder an ownership claim on that company's earnings. If those earnings go up, then the stock price will usually rise as well. Makes sense, doesn't it? Ownership of a company that has higher earnings should be worth more than ownership of a company that earns less. An investment in the stock market comes down to this: It's a "bet" that corporate profits will rise! Based on the historical evidence, it's a pretty good wager! Not a guarantee by any means, but one where you hold house odds. Still not convinced? Maybe you're saying to yourself that just because corporate earnings rise in most years doesn't mean there aren't years in which they fall. True enough. But over the last 200 years, business profits have increased in far more years than they have decreased. And that's because the economies in the developed countries have expanded at a fairly steady pace with only several occasional setbacks from recessions. And that means stockholders with a good mix of companies are more likely than not to make money! Gambling just transfers money from a loser to a winner because it produces nothing ... excluding the severe doses of adrenaline! On the other hand, investing increases overall wealth because the capital invested in stocks provides the initial funding for firms, which exist for the purpose to producing goods and services. Copyright © 2005 I.E.C. Haramis Ioannis - Evangelos C. Haramis was born in Greece and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.
MORE RESOURCES: table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/0-0fd=Rurl=http://www.lansingstatejournal.com/article/20081201/NEWS03/812010302/1004/NEWS03cid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNEIkDEHBbe0BV6zaEyBsc8htSBUTQAaron Goodlock: On business/abrfont size=-1font color=#6f6f6fLansing State Journal,nbsp;MInbsp;-/font nobrDec 1, 2008/nobr/fontbrfont size=-1b.../b beginning in 2011, prices paid for bstocks, mutual funds/b and other securities will be independently reported to the Internal Revenue Service. b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/1-0fd=Rurl=http://www.azcentral.com/arizonarepublic/business/articles/2008/11/30/20081130biz-wiles1130.htmlcid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNHed17c8Y7M_G8cHxh4aZ-R88aeTgTake action to shave bill on #39;08 taxes/abrfont size=-1font color=#6f6f6fArizona Republic,nbsp;AZnbsp;-/font nobrNov 29, 2008/nobr/fontbrfont size=-1Lock in losses by selling beaten-down bstocks, mutual funds/b and the like. You can use losses to offset capital gains. If your losses exceed gains, b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/2-0fd=Rurl=http://www.marketwatch.com/news/story/Morningstar-Create-Pension-Endowment-Foundation/story.aspx%3Fguid%3D%257BD41196AC-CB8B-48D0-B850-7D67B6B8AA8F%257Dcid=1272285279ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNGIWN8MzrIVFuk587QW9itI_mcW4wMorningstar to Create Pension, Endowment, and Foundation Database/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrNov 19, 2008/nobr/fontbrfont size=-1As a leading provider of independent, objective investment research, Morningstar has amassed comprehensive data on bstocks, mutual funds/b, exchange-traded b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/3-0fd=Rurl=http://www.news-leader.com/article/20081130/COLUMNISTS08/811300324cid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNHzqMOUClXk-mcnJ64HEw8ukCkJ9AResearch your investments using Value Line database/abrfont size=-1font color=#6f6f6fNews-Leader.com,nbsp;MOnbsp;-/font nobrNov 30, 2008/nobr/fontbrfont size=-1Value Line is an investment research database that gives consumers access to information about bstocks, mutual funds/b, options and convertible securities. b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/4i-0fd=Rurl=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081126/stimulus_package_081126/20081126%3Fhub%3DCTVNewsAt11cid=1276817735ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNGSVjBgno2_4-KQDH164BkOPC_vsAimg src=http://news.google.com/news?imgefp=5BCJxuVK9AYJimgurl=images.ctv.ca/archives/CTVNews/img2/20081126/160X_cp_dion_081126.jpg width=57 height=80 alt= border=1brfont size=-2CTV.ca/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/4-0fd=Rurl=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081126/stimulus_package_081126/20081126%3Fhub%3DCTVNewsAt11cid=1276817735ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNGSVjBgno2_4-KQDH164BkOPC_vsATories slammed for lack of stimulus package/abrfont size=-1font color=#6f6f6fCTV.ca,nbsp;Canadanbsp;-/font nobrNov 26, 2008/nobr/fontbrfont size=-1They are meant for saving short term to avoid brokerage fees when buying/selling bstocks, mutual funds/b, bonds etc. Such as saving up for a down payment on a b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/5-0fd=Rurl=http://thecalifornian.com/article/20081129/OPINION/811290327/1014cid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNFVx_iz8sq3cIqOamSZ1ZO51tMw_g#39;Season of giving#39; no pale cliché/abrfont size=-1font color=#6f6f6fThe Salinas Californian,nbsp;CAnbsp;-/font nobrNov 29, 2008/nobr/fontbrfont size=-1Give appreciated securities: Even with stock prices down significantly, many investors have securities (bstocks, mutual funds/b) worth more than they paid for b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/6-0fd=Rurl=http://www.ibtimes.com/prnews/20081119/il-morningstar.htmcid=1272351661ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNF8mJjW3EQk5WTe1xyYk8ztxqGQ6gMorningstar to Create Pension, Endowment, and Foundation Database/abrfont size=-1font color=#6f6f6fInternational Business Times,nbsp;NYnbsp;-/font nobrNov 19, 2008/nobr/fontbrfont size=-1As a leading provider of independent, objective investment research,Morningstar has amassed comprehensive data on bstocks, mutual funds/b,exchange-traded funds b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://www.thenation.com/doc/20081215/englercid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNEswoinFoEPHbfEtofvBUotZZQIDgSpreading the Wealth: Knowledge as Social Inheritance/abrfont size=-1font color=#6f6f6fThe Nation.,nbsp;NYnbsp;-/font nobrNov 26, 2008/nobr/fontbrfont size=-1In 2004, the top 1 percent of American households held almost half of all quot;non-retirement account bstocks, mutual funds/b, and trustsquot; and Bill Gates#39;s net b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/8-0fd=Rurl=http://www.chesterfieldobserver.com/news/2008/1126/family/021.htmlcid=0ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNECFwQ8FICWqgh-HsFYjJTOBnKCEAOnline databases put the world at your fingertips/abrfont size=-1font color=#6f6f6fChesterfield Observer (subscription),nbsp;VAnbsp;-/font nobrNov 26, 2008/nobr/fontbrfont size=-1Morningstar Investment Research Center has information about 30000 bstocks, mutual funds/b and other investments. ValueLine Research Center has indexes and b.../b/font/div/font/td/tr/table table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/9-0fd=Rurl=http://www.fool.com/investing/mutual-funds/2008/11/20/4-steps-to-protect-your-portfolio-from-the-financi.aspxcid=1272653310ei=QjA1SaWdMoPK8ATulrAJusg=AFQjCNFBufPSFEtXUi3LYfHX1pCoXHJiwA4 Steps to Protect Your Portfolio From the Financial Crisis/abrfont size=-1font color=#6f6f6fMotley Foolnbsp;-/font nobrNov 20, 2008/nobr/fontbrfont size=-1Whether you hold individual financial bstocks, mutual funds/b, or ETFs, you may have more exposure than you think. If you own the Samp;P 500 index, for example, b.../b/font/div/font/td/tr/table Stocks-Mutual-Funds - Google News |
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