crypto,trading,stocks and real estate

Definition of 'Stock' A stock or share (also known as a company's "equity") is a financial instrument that represents ownership in a company or corporation and represents a proportionate claim on its assets (what it owns) and earnings (what it generates in profits) Stock ownership implies that the shareholder owns a slice of the company equal to the number of shares held as a proportion of the company's total outstanding shares. For instance, an individual or entity that owns 100,000 shares of a company with one million outstanding shares would have a 10% ownership stake in it. Most companies have outstanding shares that run into the millions or billions. KEY TAKEAWAYS Stocks, or shares of a company, represent ownership equity in the firm, which give shareholders voting rights as well as a residual claim on corporate earnings in the form of capital gains and dividends Stock markets are where individual and institutional investors come together to buy and sell shares in a public venue. Nowadays these exchanges exist as electronic marketplaces. Share prices are set by supply and demand in the market as buyers and sellers place orders. Order flow and bid-ask spreads are often maintained by specialists or market makers to ensure an orderly and fair market. Why a Company Issues Shares Today's corporate giant likely had its start as a small private entity launched by a visionary founder a few decades ago. Think of Jack Ma incubating Alibaba Group Holding Limited (BABA) from his apartment in Hangzhou, China, in 1999, or Mark Zuckerberg founding the earliest version of f*******:, Inc. (sss) from his Harvard University dorm room in 2004. Technology giants like these have become among the biggest companies in the world within a couple of decades. However, growing at such a frenetic pace requires access to a massive amount of capital. In order to make the transition from an idea germinating in an entrepreneur's brain to an operating company, they need to lease an office or factory, hire employees, buy equipment and raw materials, and put in place a sales and distribution network, among other things. These resources require significant amounts of capital, depending on the scale and scope of the business startup. Listing Shares When a company establishes itself, it may need access to much larger amounts of capital than it can get from ongoing operations or a traditional bank loan. It can do so by selling shares to the public through an initial public offering (IPO). This changes the status of the company from a private firm whose shares are held by a few shareholders to a publicly traded company whose shares will be held by numerous members of the general public. The IPO also offers early investors in the company an opportunity to cash out part of their stake, often reaping very handsome rewards in the process. Once the company's shares are listed on a stock exchange and trading in it commences, the price of these shares will fluctuate as investors and traders assess and reassess their intrinsic value. There are many different ratios and metrics that can be used to value stocks, of which the single-most popular measure is probably the Price/Earnings (or PE) ratio. The stock analysis also tends to fall into one of two camps-fundamental analysis, or technical analysis. Investing in Stocks Numerous studies have shown that, over long periods of time, stocks generate investment returns that are superior to those from every other asset class. Stock returns arise from capital gains and dividends. A capital gain occurs when you sell a stock at a higher price than the price at which you purchased it. A dividend is the share of profit that a company distributes to its shareholders. Dividends are an important component of stock returns—since 1956, dividends have contributed nearly one-third of total equity return, while capital gains have contributed two-thirds.19 While the allure of buying a stock similar to one of the fabled FAANG quintet—f*******:, Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Netflix Inc. (NFLX), and Google parent Alphabet Inc. (GOOGL)—at a very early stage is one of the more tantalizing prospects of stock investing, in reality, such home runs are few and far between. Investors who want to swing for the fences with the stocks in their portfolios should have a higher tolerance for risk; such investors will be keen to generate most of their returns from capital gains rather than dividends. On the other hand, investors who are conservative and need the income from their portfolios may opt for stocks that have a long history of paying substantial dividends. Market Cap and Sector While stocks can be classified in a number of ways, two of the most common are by market capitalization and by sector. Market capitalization refers to the total market value of a company's outstanding shares and is calculated by multiplying these shares by the current market price of one share. While the exact definition may vary depending on the market, large-cap companies are generally regarded as those with a market capitalization of $10 billion or more, while mid-cap companies are those with a market capitalization of between $2 billion and $10 billion, and small-cap companies fall between $300 million and $2 billion. The industry standard for stock classification by sector is the Global Industry Classification Standard (GICS), which was developed by MSCI and S&P Dow Jones Indices in 1999 as an efficient tool to capture the breadth, depth, and evolution of industry sectors.20 GICS is a four-tiered industry classification system that consists of 11 sectors and 24 industry groups. The 11 sectors are: Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Communication Services Utilities Real Estate20 This sector classification makes it easy for investors to tailor their portfolios according to their risk tolerance and investment preference. For example, conservative investors with income needs may weight their portfolios toward sectors whose constituent stocks have better price stability and offer attractive dividends – so-called "defensive" sectors such as consumer staples, health care, and utilities. Aggressive investors may prefer more volatile sectors such as information technology, financials, and energy. Largest Stock Exchanges Stock exchanges have been around for more than two centuries. The venerable NYSE traces its roots back to 1792 when two dozen brokers met in Lower Manhattan and signed an agreement to trade securities on commission in 1817, New York stockbrokers operating under the agreement made some key changes and reorganized as the New York Stock and Exchange Board. How The Stock Market Works The NYSE and Nasdaq are the two largest exchanges in the world, based on the total market capitalization of all the companies listed on the exchange. The number of U.S. stock exchanges registered with the Securities and Exchange Commission has reached nearly two dozen, though most of these are owned by either CBOE, Nasdaq or NYSE.23 The table below displays the 20 biggest exchanges globally, ranked by total market capitalization of their listed companies. Trading refers to buying and selling stocks rather than making direct Buy low sell high Futures Trading Basics A futures contract is a legally binding agreement between two parties in which they agree to buy or sell an underlying asset at a predetermined price in the future. The buyer assumes the obligation to buy and the seller to sell. And the value of the underlying asset—in this case, the Dow—will usually change in the meantime, creating the opportunity for profits or losses. Some commodity futures contracts still require actual physical delivery of the underlying product in question, such as bushels of corn, but that is not the case with Dow and other financial market futures, which were created to allow traders to easily hedge risk and speculate for profit. They can be settled for cash. Trading Hours Unlike the stock market, financial futures trade six days a week, Sunday through Friday, and nearly around the clock. During regular U.S. stock market trading hours, the DJIA futures contract price very closely tracks the index value. When the U.S. stock markets are closed, these index futures may continue to trade in after-hours sessions. These prices, which continue even while the underlying component stocks are closed, can be influenced by economic data releases or monetary policy decisions in other countries or geopolitical events. trading hours include: Monday—Friday: 5:00 p.m. previous day—4:15 p.m.; trading halt from 3:15 p.m.—3:30 p.m Opening a Futures Trading Account The first step to trading Dow futures is to open a trading account or, if you already have a stock trading account, to request permission from your brokerage to trade futures. Most major brokerages such as E*Trade, TD Ameritrade, and Interactive Brokers offer stock index futures. They generally charge a commission when a position is opened and closed. Key considerations when choosing a broker are the ease of the trading platform, commission charges, customer service, and features such as news and data feeds and analytical tools such as charts. Select a Futures Trading Strategy After selecting a broker and depositing funds into a trading account, the next step is to download the broker's trading platform and learn how to use it. You don't want to get caught attempting to make quick trading decisions in a volatile market before you are proficient in using your trading software. Test your trading strategy before you start risking your hard-earned money. Once you know your trading platform, select a trading strategy and test it using a demo or trade simulator account. Only begin live trading with real money after you have a strategy that is consistently profitable in simulated trading. This is even more important when trading with highly leveraged instruments such as futures. With futures trading, you can buy long or sell short with equal ease. Futures markets aren't burdened with the same short-selling regulations as stock markets. If you expect the DJIA to go up, buy a futures contract; if you expect the index to decline, sell one short. Take a position in the futures contract trading month you want to trade—the one with the closest expiration date will be the most heavily traded. Closing a Position Close an open trade simply by entering an opposite order. For example, if you opened the trade by buying five E-mini Dow contracts, you would close the trade by selling them with the same futures contract expiration date. If you opened by selling five contracts short, you would need to buy five to close the trade. It is also possible to partially close out of a position if you have more than one contract—for example, selling three of five contracts originally bought, leaving a position of two contracts open. Using Leverage in Trading One of the most attractive features of futures contracts is leverage. A trader can buy an E-mini Dow contract for about $5,500—and that futures contract is worth $5 for every point on the DJIA.5 So if you buy when the index itself is at 29,000, and sell when it hits 30,000, you've made $5,000 on the trade, nearly doubling your money. Beware, though, that leverage cuts both ways, magnifying losses as well as gains. A drop of 1,000 points on the Dow would nearly wipe out your $5,500. Trading the Dow With Futures Contracts Put simply, DJIA futures contracts enable traders and investors to bet on the direction in which they believe the index, representing the broader market, will move. That simplicity, the high trading volumes and the leverage available have made Dow futures a popular way to trade the overall U.S. stock market. About 200,000 E-mini Dow contracts change hands every day.2 There are now two Dow futures contract sizes available, both of which trade on the Chicago Board of Trade (CBOT) and Chicago Mercantile Exchange (CME). The E-mini, or mini-Dow, contract, as noted above, represents $5 per tick on the DJIA. The Micro E-mini is one-tenth the size of the E-mini, and represents 50 cents per point,with a margin requirement of only $550. In addition to the front month, Dow futures are listed quarterly, with expirations in March, June, September, and December. These contracts are cash-settled, meaning that delivery is made in the equivalent value of the index rather than in the stocks that make up the index itself KEY TAKEAWAYS Dow Jones futures contracts enable just about anyone to speculate on whether the broader stock market will rise or fall. Dow futures contracts can be traded on leverage, meaning you only need to put up a fraction of the value of the contract. Dow futures markets make it much simpler to short-sell the broader stock market than individual stocks. Futures contracts such as the E-mini Dow enable just about anyone to trade or invest in the Dow Jones Industrial Average (DJIA), the most iconic stock index in the world. The Dow tracks 30 blue-chip U.S. stocks from nine sectors, ranging from industrials to health care to consumer staples.1 The Dow is often considered synonymous with "the stock market," though the S&P 500 Index, which is comprised of 500 companies, more broadly represents the U.S. equities market. Still, Dow index futures are a popular tool for getting broad-based exposure to U.S. equity or hedging such positions. What Is Real Estate? Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment. KEY TAKEAWAYS Real estate is a class of "real property" that includes land and anything permanently attached to it, whether natural or man-made. There are five main categories of real estate: residential, commercial, industrial, raw land, and special use. You can invest in real estate directly by purchasing a home, rental property or other property, or indirectly through a real estate investment trust (REIT). Understanding Real Estate People often use the terms land, real estate, and real property interchangeably, but there are some subtle distinctions. Land refers to the earth's surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water. Real estate is the land, plus any permanent man-made additions, such as houses and other buildings. Real property—one of the two main classifications of property—is the interests, benefits and rights inherent in the ownership of real estate. Broadly speaking, real estate includes the physical surface of the land, what lies above and below it, what is permanently attached to it, plus all the rights of ownership—including the right to possess, sell, lease, and enjoy the land. Real property shouldn't be confused with personal property, which encompasses all property that doesn't fit the definition of real property. The primary characteristic of personal property is that it's movable. Examples include vehicles, boats, furniture, clothing, and smartphones. Physical Characteristics of Real Estate Land has three physical characteristics that differentiate it from other assets in the economy: Immobility. While some parts of land are removable and the topography can be altered, the geographic location of any parcel of land can never be changed. Indestructibility. Land is durable and indestructible (permanent). Uniqueness. No two parcels of land can be exactly the same. Even though they may share similarities, every parcel differs geographically. Economic Characteristics of Real Estate Land also has some distinct economic characteristics that influence its value as an investment: Scarcity: While land isn't considered rare, the total supply is fixed. Improvements: Any additions or changes to the land or a building that affects the property's value is called an improvement. Improvements of a private nature (such as homes and fences) are referred to as improvements on the land. Improvements of a public nature (e.g., sidewalks and sewer systems) are called improvements to the land. Permanence of investment: Once land is improved, the total capital and labor used to build the improvement represent a sizable fixed investment. Even though a building can be razed, improvements like drainage, electricity, water, and sewer systems tend to be permanent because they can't be removed (or replaced) economically. Location or area preference. Location refers to people's choices and tastes regarding a given area, based on factors like convenience, reputation, and history. Location is one of the most important economic characteristics of land (thus the saying, "location, location, location!"). Types of Real Estate There are five main types of real estate: Residential real estate: Any property used for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences with fewer than five individual units. Commercial real estate: Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters. Industrial real estate: Any property used for manufacturing, production, distribution, storage, and research and development. Examples include factories, power plants, and warehouses. Land: Includes undeveloped property, vacant land, and agricultural land (farms, orchards, ranches, and timberland). Special purpose: Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools. How the Real Estate Industry Works Despite the magnitude and complexity of the real estate market, many people tend to think the industry consists merely of brokers and salespeople. However, millions of people in fact earn a living through real estate, not only in sales but also in appraisals, property management, financing, construction, development, counseling, education, and several other fields. Many professionals and businesses-including accountants, architects, banks, title insurance companies, surveyors, and lawyers-also depend on the real estate industry. Real estate is a critical driver of economic growth in the U.S. In fact, housing starts-the number of new residential construction projects in any given month-released by the U.S. Census Bureau is a key economic indicator. The report includes building permits, housing starts, and housing completions data, divided into three different categories: Single-family homes Homes with 2-4 units Multifamily buildings with five or more units, such as apartment complexes Investors and analysts keep a close eye on housing starts because the numbers can provide a general sense of economic direction. Moreover, the types of new housing starts can give clues about how the economy is developing. Example: Housing Starts For example, if housing starts indicate fewer single-family and more multifamily starts, it could indicate an impending supply shortage for single-family homes-which could drive up home prices. The following chart shows 20 years of housing starts, from Jan. 1, 2000, to Feb. 1, 2020.  How to Invest in Real Estate There are a number of ways to invest in real estate. Some of the most common ways to invest directly include: Homeownership Rental properties House flipping If you buy physical property (e.g., rental properties, house flipping), you can make money two different ways: Revenue from rent or leases, and appreciation of the real estate's value. Unlike other investments, real estate is dramatically affected by its location. Factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, municipal services, and property taxes can drive real estate prices up or down. PART OF Real Estate Investing Guide ALTERNATIVE INVESTMENTS REAL ESTATE INVESTING Real Estate By JAMES CHEN Reviewed by GORDON SCOTT Updated Jun 14, 2021 What Is Real Estate? Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made-including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment. KEY TAKEAWAYS Real estate is a class of "real property" that includes land and anything permanently attached to it, whether natural or man-made. There are five main categories of real estate: residential, commercial, industrial, raw land, and special use. You can invest in real estate directly by purchasing a home, rental property or other property, or indirectly through a real estate investment trust (REIT). 1:34 Real Estate Understanding Real Estate People often use the terms land, real estate, and real property interchangeably, but there are some subtle distinctions. Land refers to the earth's surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water. Real estate is the land, plus any permanent man-made additions, such as houses and other buildings. Real property-one of the two main classifications of property-is the interests, benefits and rights inherent in the ownership of real estate. Broadly speaking, real estate includes the physical surface of the land, what lies above and below it, what is permanently attached to it, plus all the rights of ownership-including the right to possess, sell, lease, and enjoy the land. Real property shouldn't be confused with personal property, which encompasses all property that doesn't fit the definition of real property. The primary characteristic of personal property is that it's movable. Examples include vehicles, boats, furniture, clothing, and smartphones. Physical Characteristics of Real Estate Land has three physical characteristics that differentiate it from other assets in the economy: Immobility. While some parts of land are removable and the topography can be altered, the geographic location of any parcel of land can never be changed. Indestructibility. Land is durable and indestructible (permanent). Uniqueness. No two parcels of land can be exactly the same. Even though they may share similarities, every parcel differs geographically. Economic Characteristics of Real Estate Land also has some distinct economic characteristics that influence its value as an investment: Scarcity: While land isn't considered rare, the total supply is fixed. Improvements: Any additions or changes to the land or a building that affects the property's value is called an improvement. Improvements of a private nature (such as homes and fences) are referred to as improvements on the land. Improvements of a public nature (e.g., sidewalks and sewer systems) are called improvements to the land. Permanence of investment: Once land is improved, the total capital and labor used to build the improvement represent a sizable fixed investment. Even though a building can be razed, improvements like drainage, electricity, water, and sewer systems tend to be permanent because they can't be removed (or replaced) economically. Location or area preference. Location refers to people's choices and tastes regarding a given area, based on factors like convenience, reputation, and history. Location is one of the most important economic characteristics of land (thus the saying, "location, location, location!"). Types of Real Estate There are five main types of real estate: Residential real estate: Any property used for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences with fewer than five individual units. Commercial real estate: Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters. Industrial real estate: Any property used for manufacturing, production, distribution, storage, and research and development. Examples include factories, power plants, and warehouses. Land: Includes undeveloped property, vacant land, and agricultural land (farms, orchards, ranches, and timberland). Special purpose: Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools. How the Real Estate Industry Works Despite the magnitude and complexity of the real estate market, many people tend to think the industry consists merely of brokers and salespeople. However, millions of people in fact earn a living through real estate, not only in sales but also in appraisals, property management, financing, construction, development, counseling, education, and several other fields. Many professionals and businesses-including accountants, architects, banks, title insurance companies, surveyors, and lawyers-also depend on the real estate industry. Real estate is a critical driver of economic growth in the U.S. In fact, housing starts-the number of new residential construction projects in any given month-released by the U.S. Census Bureau is a key economic indicator. The report includes building permits, housing starts, and housing completions data, divided into three different categories: Single-family homes Homes with 2-4 units Multifamily buildings with five or more units, such as apartment complexes1 Investors and analysts keep a close eye on housing starts because the numbers can provide a general sense of economic direction. Moreover, the types of new housing starts can give clues about how the economy is developing. Example: Housing Starts For example, if housing starts indicate fewer single-family and more multifamily starts, it could indicate an impending supply shortage for single-family homes-which could drive up home prices. The following chart shows 20 years of housing starts, from Jan. 1, 2000, to Feb. 1, 2020.2 Housing starts 20 years of housing starts. Source: Federal Reserve Bank of St. Louis. How to Invest in Real Estate There are a number of ways to invest in real estate. Some of the most common ways to invest directly include: Homeownership Rental properties House flipping If you buy physical property (e.g., rental properties, house flipping), you can make money two different ways: Revenue from rent or leases, and appreciation of the real estate's value. Unlike other investments, real estate is dramatically affected by its location. Factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, municipal services, and property taxes can drive real estate prices up or down. Pros Offers steady income Offers capital appreciation Diversifies portfolio Can be bought with leverage Cons Is usually illiquid Influenced by highly local factors Requires big initial capital outlay May require active management and expertise You can invest in real estate indirectly, as well. One of the most popular ways to do so is through a real estate investment trust (REIT)-a company that holds a portfolio of income-producing real estate. There are several broad types of REITs, including equity, mortgage, and hybrid REITs. REITs are further classified based on how their shares are bought and sold: Publicly traded REITs Public non-traded REITs Private REITs The most popular way to invest in a REIT is to buy shares that are publicly traded on an exchange. Since the shares trade like any other security traded on an exchange (think stocks), it makes REITs very liquid and transparent. Like many stocks, you earn income from REITs through dividend payments and appreciation of the shares. In addition to individual REITs, you can also invest in real estate mutual funds and real estate exchange traded funds (ETFs). What We Like Liquidity Diversification Steady dividends Risk-adjusted returns What We Don't Like Low growth/low capital appreciation Not tax-advantaged Subject to market risk High fees Mortgage-Backed Securities Another option for investing in real estate is via mortgage-backed securities (MBS). These received a lot of bad press due to the role they played in the mortgage meltdown that triggered a global financial crisis in 2007-08. However, MBS are still in existence and traded. The most accessible way for the average investor to buy into these products is via ETFs. Like all investments, these products carry a degree of risk. However, they may also offer portfolio diversification. Investors must investigate the holdings to ensure the funds specialize in investment-grade mortgage-backed securities, not the subprime variety that figured in the crisis. MBS Examples Two popular ETFs that give ordinary investors access to MBS include: The Vanguard Mortgage-Backed Securities ETF (VMBS): This ETF tracks the Bloomberg Barclays U.S. MBS Float Adjusted Index, made up of federal agency-backed MBS that have minimum pools of $1 billion and minimum maturity of one year. The iShares MBS ETF (MBB): This ETF focuses on fixed-rate mortgage securities and tracks the Bloomberg Barclays U.S. MBS Index. Its holdings include bonds issued or guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac, so they are AAA-rated. Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, s*x, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.5 One such step is to file a report to the Consumer Financial Protection Bureau or with the U.S. Department of Housing and Urban Development (HUD). Upgrade Your Trading Strategy Pepperstone makes trading Forex, Cryptocurrencies, Indices, Commodities and Shares CFDs easier and simpler. Their comprehensive market analysis and video education plus their exceptional customer support is globally recognised as best in class. They even offer social and copy trading so that you can mimic the actions of experienced traders. Trading is not suitable for everyone, and may result in losses What Are Cryptocurrencies? PART OF Guide to Bitcoin CRYPTOCURRENCY CRYPTOCURRENCY STRATEGY & EDUCATION The 10 Most Important Cryptocurrencies Other Than Bitcoin Before we take a closer look at some of these alternatives to Bitcoin, let’s step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money that takes the form of tokens or “coins.” While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible. KEY TAKEAWAYS A cryptocurrency, broadly defined, is currency that takes the form of tokens or “coins” and exists on a distributed and decentralized ledger. Beyond that, the field of cryptocurrencies has expanded dramatically since Bitcoin was launched over a decade ago, and the next great digital token may be released tomorrow. Bitcoin continues to lead the pack of cryptocurrencies in terms of market capitalization, user base, and popularity. Other virtual currencies such as Ethereum are being used to create decentralized financial systems for those without access to traditional financial products. Some altcoins are being endorsed as they have newer features than Bitcoin, such as the ability to handle more transactions per second or use different consensus algorithms like proof-of-stake. The “crypto” in cryptocurrencies refers to complicated cryptography that allows for the creation and processing of digital currencies and their transactions across decentralize system. these coin are from the government control.