Investors who have a view on where a stock’s headed have an alternative to buying or selling those shares outright – they can take out an options contract.
Options open up the opportunity for profit if the share price moves in the direction the investor expects and limit risk if things don’t go their way.
Sophisticated investors can take advantage of ‘mispricings’ in the market by using some more complex options strategies ... more »
Making the move from saver to investor is your first step on the road to building wealth. It’s only by putting your money to work that you can really get ahead.
How do people become wealthy? Some people inherit money, some people build their own business, some have a lucky break – but for most of us building wealth is about astute, well-researched investment backed by sound advice. Even starting with limited resources, it’s possible to realise your financial goals. more »
Studying a company’s financial statements provides an investor with vital information about a company’s performance and – more importantly – pointers to its prospects.
Analysing that information using financial ratios, such as the oft-quoted price-earnings ratio, allows comparisons to be made with the past, with other companies in the industry, and with the market as a whole. more »
Most people dream of owning their own home, but before you start looking in real estate agents’ windows you need to work out whether home ownership makes financial sense for you.
Can you afford the home loan repayments for the sort of property you’re considering? Are you confident you could still cope with repayments through events such as interest rates rises, pregnancy or job loss? Do you want the financial and physical burden of keeping a property in good order?
Would you be better off renting and diverting your cash to assets other than property? more »
Property has been a popular route to wealth for many Australians for many years. Buying their own home is often the first ‘investment’ many people make; purchasing another property may well be the second – even before shares and other assets.
But your first investment in property needn’t be your home. Indeed, buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live. more »
Not everyone has the time and resources to build a diverse investment portfolio and keep a close eye on it. That's where managed funds come in.
Managed funds allow you to pool your money with other investors so you can all invest in assets that might otherwise be out of your reach.
On your own, you might have sufficient funds to make a worthwhile investment in one or two stocks; together with other investors in a managed fund, you'll gain exposure to a whole range of assets. And professional fund managers will manage these investments for you. more »
Markets: ASX boosted
Commodities: Oil slips
Resources: Atlas Iron rising
Mumford: Fed must be flexible
After recording their largest declines last year, commodities markets are set for further weakness over the first half of 2009, writes Stephen Wyatt.
Mergers and acquisitions activity is set for a sluggish start to '09 after five years of continuous growth, reports Patrick Durkin.
Banks have urged the federal government to explain its exit strategy for the guarantee on bank deposits, reports Matthew Drummond.
Last year wasn't pretty for any stockmarket in Asia, but it was especially brutal for Japan's Nikkei 225 Stock Average, reports Katrina Nicholas.
'Buy America' may sound like a pretty innocuous call to arms, but it's one of the scariest lines I've heard in a long time, writes Glenn Mumford.
EXCLUSIVE FROM NEW YORK What's more ridiculous? Kudos for bank CEO's forgoing bonuses or outrage over how bail-out money is being spent.
All sections:
Daily News Sections
Columns & Opinion
Weekly Sections
Signature Issues
Research & Tools
Market Data
