Stock Investing 101 – Treasury Stock

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Treasury Stock

These are shares that were bought back by the company in a stock repurchase program. They do not pay dividends, confer no voting rights and is excluded when determining the total number of shares outstanding.

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Writing Puts to Purchase Stocks

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Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date. [Read on. ]

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Understanding Put-Call Parity

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How to Invest in Stocks – Stock Investing 101 – TheStreet

A Beginner’s Guide to Stock Investing

Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stocks provides no voting rights but usually guarantees a dividend payment.

In the past, shareholders received a paper stock certificate — called a security — verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.

Investing in stocks can be tricky business. In fact, it’s best to treat all of your investment pursuits as a business. Heck, that’s what Benjamin Graham (Warren Buffett’s stock market mentor) recommended.

Before you buy your first stock, you should master the basics of stock investing. This won’t make you a great investor overnight, but only when you understand the fundamentals of investing can you learn how to invest in stocks with confidence .

If you found this content useful, please share it. This will help us create more educational guides for investors.

Bond Investing 101 – Basics of Bond Investing – TheStreet

How to Invest: Investing 101

Treasury Bonds

>> Which 30-Year Treasury Bond Does Everyone Quote?
When newscasters like those on CNBC report price changes and yields for “the 30-year Treasury bond,” exactly what bond — or is it a group of bonds — are they reporting on?

>> How Does the Fed Funds Rate Affect Treasury Bills?
What happens to Treasury bill yields when interest rates go up? Do they react the same way as bonds?

Municipal Bonds

>> Zero Coupon Municipal Bonds: Tax Treatment
Is the buyer of a zero-coupon muni held to maturity ever subject to federal taxes (other than the alternative minimum tax)?

>> What is the MOB (Municipal Over Bond) Spread?
The MOB spread is the difference in price between the municipal bond futures contract listed on the Chicago Board of Trade and the Treasury bond futures contract listed on the same exchange.

>> Calculating Bond Yields: Municipal vs Taxable
In order to do an apples-to-apples comparison between the yield on a municipal bond and a taxable bond, you have to calculate either the taxable-equivalent yield of the muni bond or the after-tax yield of the taxable bond.

Advanced Bond Concepts

>> What is Bond Duration?
Duration gives investors a way to compare bonds with different maturities and coupons.

>> What is Bond Convexity?
If duration describes the approximate relationship between price and yield, convexity describes the actual relationship between price and yield.

>> How to Measure a Bond’s Interest-Rate Sensitivity
Duration and average life are different ways of measuring the interest-rate sensitivity of a debt security.

Taxation of Bonds

>> Do Bonds Bought at a Premium Produce Capital Losses?
Since a bond bought at a discount generates a capital gains tax liability at maturity, does it generate a capital loss deduction at maturity if bought above par?

Bond ETFs and Funds

>> ETFs vs. Mutual Funds: High-Yield Debt
For long-term investors, mutual funds that invest in high-yield debt outperform comparable ETFs.

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