Showing posts with label Currency. Show all posts
Showing posts with label Currency. Show all posts

Monday, October 16, 2017

Investment Terminology: Stock Markets, Shares & Dividends

DISCLOSURE: This post contains sponsored ads and I will be compensated if you make a purchase after clicking on my links.
 New York Stock exchange investments stock market shares

   Before stepping further into this world of financial investment, we should become familiar with a few of the terminology used in this industry. There are literally thousands of  phrases, jargons & languages used in the finance world. We'll start with some of the more common everyday wordings. Then define others as they pertain to that particular subject matter.......

Stock Market                          

   When companies that need to grow their business they will often raise money by offering a percentage of their companies to you, the public. You may ask, well why would someone give away a piece of their company when they could obtain a loan from a bank right? Yes, they could, but then the companies starts accumulating debt. Here's what we're looking at when considering financing a business........ If said company ADH profit in the future, a bank loan could be better suited. Yet, said company ADH would still pay huge sums of interest.

   This becomes the concern, will company ADH profit in the following years after the loan. Since nothing is guaranteed in life, as surely the outcome of any business. These companies offer off a piece of the business called "shares." Which entitles the "share-holder' a portion of the profit called dividends. The trade-off, no pun intended, is now the company pulls in the necessary financing but the share-holder absorbs the risk  should the company not perform well.

   The dictionary defines "shares" as a part or portion of a larger amount that is divided among a number of people, or to which a number of people contribute. You may have been investing in shares and not really know it. See some companies offer pension/retirement plans. Have you ever participate in a companies 401K plan. Yep, you were investing in some form of the stock market.

   In short, the stock market is a place to trade (buy and/or sell) shares or pieces of a company. 


  Known as exchanges, these companies, businesses including government entities have a platform to raise capital. These facilities can regulate the trading (buying & selling) of stocks, securities including other financial products like commodities.

Top World Exchanges:

   When a stock is first offered (sold) to the public by a company, it is known as an I.P.O. or initial public offering. Once these shares are sold to the public and because the stock exchange tracks their progress. The shareholder can now utilize this information to sell, buy or trade more stocks.

Click to learn to trade forex stocks futures trends

There are two types of shares:


   Common shares are the most prominent of the two. Holders of these shares can vote on the companies leadership called "board of directors"  & certain corporate affairs. Shareholders make their money when the value of the company increases (appreciates) and when dividends are paid on the shares owned. 
   The down side is the amount paid out will vary due to companies value. Also if the business/company ends up bankrupt, common shareholders are the last to get any funds. Creditors and other company expenses along with what are known as preferred shares will get paid before common share.


   Preferred shares pays are generally paid more due to prearranged terms but do not get to vote on any of the companies affairs. These stocks are guaranteed because of their fixed agreement yet do not yield the same profit potential as common stock. Some would say this is a more stable invest, sighting that payouts are not attached to the interest of the markets. As well as getting some money returned in case the company goes under.

click to find the best dividend stocks


   A dividend is a shareholders payout from the profits of the company they own a piece of. These payouts are done quarterly, sometimes paid in cash, sometimes distributed in stocks or properties. Instead of interest paid by banks into an saving account. Here the company pays an (allowance) to it's shareholder from the profits it has accumulated.
   Remember shares is the offering to the public a chance to buy a piece of said business. Because not all companies or businesses offer shares as a means to raise capital. Others may offer what is called equity stake. Which are not traded on the stock market.
Keepkey Hardware Crypto Smartcard Wallet    A person can have a stake in the business. If the company has only one owner (Sole proprietorship) that person is said to have a 100% stake in his or her business. This person can raise additional finance (capital) by offer a partnership, a stake in the business. 
   Example: Two people invest in the business. Each one has a 50% stake in the business. Three person will have a 33.33% stake in said business just as four people would each have a 25% equity stake in the business and so on. However, this is a simple example, in reality, contracts that are drawn up constitutes formal stakes. One make invest $10,000.00 for a 5% stake in the business if that is the agreement.

Blue Chips: 

   A companies stock that has had a consistent high yield earning, long solid stable history. Are coined "BLUE CHIP" stocks. If you are a poker player, you can figure the highest value poker chip is blue. Which is where it's name originated.
These companies most likely have been around a very long time. You would know them by name right off the bat. They would have a top notch financial performance while dominating their industry.

Old school blue chippers:
  • General Electric (GE)
  • AT & T (T)
  • Kraft Foods (KFT)
  • Caterpillar (CAT)
  • JPMorgan Chase (JPM)

   These are just a few of the companies that have been around for decades. That doesn't say there are not any blue chip stock that are fairly young. Nevertheless, the criteria are mostly the same.

Investing Edge - Get an Investing Edge by joining Jim Cramer's Members-Only Investing Club. Get Free for 14 Days!
   A popular financial TV host Jim Cramer of the CNBC program "Mad Money". Dubbed the acronym, F.A.N.G. because of these 4 popular blue chip performing tech companies.....
  • Facebook (FB)
  • Amazon  (AMZN)
  • Netflix (NFLX)
  • Google aka Alphabet (GOOG & GOOGL)

Symbols after each company name are known as "Ticker symbol or stock symbol
these are the identifying letters associated within the exchanges.

These companies continue to sustain shares & sales growth.

$$$$ All of which is excellent news for investors $$$$

click to buy videi course covering Bitcoin blockchain mining trading


Copyright © 2017 Andrew Hayes All Rights Reserved
DISCLOSURE: This post contains sponsored ads and I will be compensated if you make a purchase after clicking on my links.

Tuesday, October 10, 2017

Currency Evolution: Trades, Exchanges, Money into Blockchain & Beyond


Search engine for things you can buy with Bitcoin    

Wealth creation had to have a start. If we look around, you'll see that physical currency, whether in trades or business cents (sense) has evolved.  

Let's begin..........

   Remember back in school when we would offer a bag of chip for someone else's juice box.......a simple trade right?  An exchange of goods for other goods without the use of currency aka money.  

   Long before money was invented, this transaction for exchanging services or goods called "bartering" were used. A process of trading services and/or goods between two parties without the use of money or physical currencies.

   These goods could be spices, furs, crafts, weapons, livestock, foods and of course, work. If you had a specialized skill that could be use, you might work for room and board. Salt, was a very popular spice and of such value back then, that Roman soldiers were paid with it.

   Bartering took time though......there was negotiations, knowing who you were negotiating with, different customs and the value of the items to be bartered.  Then there was the fact that what if what you had to offer was not what the other wanted or vise versa. 

Bartering back then....."I have what you need" was the call of the day. 

          One trader may have spices & fur, you may need weapon and wheat. So you can see where issues would arise.

Physical currencies or money would speed transactions up. 

   To make it work efficiently there has to be a value tied to this physical currency.... like rubies, gems, silver, gold & diamonds. 

Transform Your Life - 100 Day Challenge

Let's step back a bit.......

   As early as 1100BC items like axes & tools are believed to be used in China. Out of which the first coins were established. Around 600BC King of Lydia (a part of Turkey) established the official currency minted out of silver & gold. Somewhere 1200BCish, China had upgraded to paper currency. Being lighter and compact. 1600AD brought paper currency to the European banks. 

  As the U.S. colonies were themselves establishing their independence, the Massachusetts Colony created their own coins (1652). They also issued the Americans earliest notes (1690). The U.S. first cent was authorized in 1787, made of copper called a "Fugio" cent. President Abraham Lincoln signed the National (Currency) Banking Acts of 1863.

   With markets opening up by banks and ruling governments for which participants from across the globe exploded into international trades.


  Banking notes, currency markets and the need to determine comparative values on the many currencies. Brings the 17th century the first active foreign exchange market or forex to Amsterdam.

The evolution of currency did not stop there. 

   21st century trades introduces society to not only digital, mobile payments, but virtual currency as well. 

   Electronic (e) cards……credit, debit & check cards are abundant in our society today. Direct-deposit, online banking and almost every payment (car, house note etc.) you make can be processed online through some form of digital media. Do you really even see your money in hard form anymore?

   Along comes an aspiring technology called "Blockchain". This distributed ledger works ingeniously with the internet. A simple explanation breaks it down as......

Make an transaction, that request is expressed through a Peer-2-Peer network called Nodes (a network of computers). Algorithms validate the status & transaction. Once verified whether it records, music, contracts, videos, digital ads or of course cryptocurrency. A new "Block" is created with all transaction for the ledger. This new block is added to the chain and can not be altered. It is permanent. Transaction completed. Data is transparent within the network, making it public. Yet, one would have to override the entire network to corrupt (hack) the data.

   In 2008, a programmer and/or associates noted as "Satoshi Nakamoto" issued a paper outlining "Digital Currency" and in 2009 initiated software that generated cryptocurrency & the first "BITCOIN" network . Bitcoin is not a physical coinage. It is a decentralized authority, no government nor central banker has the power. Where as all other forms of currency are government/bank issued. Bitcoin, a cryptocurrency that is fast becoming a household name.

   For now, understand the difference between virtual, digital & crypto currency.

Virtual CurrencyIs a type of unregulated, digital money, which is controlled by its developers. Accepted among it's specific virtual community. Say, PS4 gaming format, online game programs where currencies are only of value within that particular game or system. How about those virtual casino games. Those winning can not be use in the real world.

Digital Currency ~ Is a form of virtual currency that is electronically created and stored. For instance, Paypal, Android pay, Apple pay or Visa checkout. All transactions are strictly executed in a digital online format.

Crypto Currency ~ Is a subgroup of digital currency that uses cryptography for security. However, some types of digital currencies are cryptocurrencies. 

      Money ~ Then & Now

728x90 Investing Club

Copyright © 2017 Andrew Hayes All Rights Reserved