Saturday, August 29, 2015

How to Measure Volatility of a Stock


Create a spreadsheet to compile and calculate stock price information. Make a separate page in the spreadsheet for each stock you are going to track to keep things simple and organized until you get accustomed to keeping and reading this type of data. For each stock make a column for historical stock prices and another for daily stock prices.
Make a list of the stocks you have holdings in currently and those that you are considering investing in. Write down stock names, trading symbols and stock prices with dates. Access historical stock price data and copy the information directly in to the spreadsheet you created.
Enter all historical information in to the spreadsheet. At a minimum you will need one month worth of daily stock prices to get started but for better results six months of historical stock price data is good.
Calculate what is known as the average closing price. This is done by finding the average of the stock price based on a period of time. Taking the six-month window of historical data as an example, you would find the average price of a stock over six months by adding all of the daily prices from the six-month range and dividing that number by 183. A different example would be for a 20-day period; add all 20 daily numbers and divide by 20 for the simple average.
Take the average closing price and calculate the difference between that average and the actual closing price. If you are using a spreadsheet you would create a third column for this information. This number is what is known as the deviation.
Square the deviation number and then add together all of the deviations for the time period that you are tracking. Then you take that sum of the squared deviations and divide that number by the time period you are tracking. For example, in the 6-month example you would divide the sum of all squared deviations by 183.
Take the square root of the last number calculated and you are left with the standard deviation. A higher standard deviation number means higher stock price volatility which then implies more pricing swings and movement, which is attractive to higher risk investors.

How to Read Stock Charts


Print out a sample stock chart to examine (see 'Additional Resources,' below). Stock charts can be set up on a daily, weekly or long-term format, but they all follow the same basic plan. Start at the top where you will see the stock symbol and date of the chart. Also at the top are the day's high, low, and closing prices and the volume of shares traded.
Look just below the top line of information. You will see an entry that says MA(30), MA (60) or some other number. This is the moving average. It is the average price of the stock over recent past. The number in parentheses tells you how many days the moving average covers. At the very bottom of the chart there should be a bar graph. This gives you the volume of shares traded each day the chart covers.
Examine the main graph between the top and the volume bar graph at the bottom. Each day's trading is usually represented by a short bar or 'candlestick.' The top of the bar indicates the high for that day and the bottom the low. If there is a graph line passing through these bars, it indicates the closing price.
Notice which way the graph of the stock price is pointed. If it is headed toward the upper right corner, the stock is in an upward trend. If it's pointed at the bottom right, it is in a downward trend. Sometimes the graph doesn't seem to be moving one way or the other, and traders call this a period of consolidation.
Understand the function of a stock chart. The point is to spot trends early so you can buy early in an upward trend and sell early in a downward trend. Traders use a number of indicators to do this. For example, look for price supports. A price support is a price below which the stock rarely drops. When it approaches the price support, it's likely to reverse the downward trend and start moving up. A price resistance is the same thing in reverse: a price the stock falls short of. If it gets close, the stock price tends to reverse direction and decline.

How to Stock a Hair Salon


Decide on the services you plan on offering in your hair salon. Full service salons need products for the client's hair, manicures, pedicures and facials.
Make a list of the types of products for your salon. Categorize items into different categories, such as shampoo, conditioner, cosmetics, hair dryers and flat irons.
Designate a place for products. Scope out a closet and/or create a display if you plan to offer products for purchase to your clients. Budget for shelving units and storage solutions to maximum use of the space.
Shop around the find the best deals online and locally. Wholesalers typically offer discounts to hair salons for equipment and salon only supplies.
Consider offering products to sell to consumers. Wholesalers can assist with promoting and selling accessories and products designed for home use at a profit.
Consult with other hair salons in the area for advice on popular items to stock, finding wholesalers and tracking.
Use software to track your inventory, monitor supply and demand and budget for your purchases.

How to Buy Stock on the International Stock Exchange


Choose your investment channel. If you're considering investing in the international stock market, most likely you already have a brokerage account in place. With international investments, it's best to have a knowledgeable adviser in your corner. If you've been going it alone up to this point, you might want to consider a full-service brokerage firm or a fee-based service to help you navigate this new terrain. Understanding currency exchange procedures, regulatory requirements and overall portfolio management advice is much needed when investing in the international stock market.
Research the global stock market. Two types of markets dominate the global stock exchange: Mature markets--These include the United States, London and Europe. These are markets in which growth potential is small. The corporate market momentum has pretty much stabilized.Developing markets--These markets are called BRIC economies and include the countries of Brazil, India, China and Russia. These are developing countries, and so their corporate market growth potential is large.You would think the developing markets would be the wise investment choice; however, developing countries are prone to frequent economic and political change. Changes like these impact the corporate structure of a country’s market system and can drastically improve or depreciate the value of a stock investment.Mature markets offer stability but little opportunity for growth. The potential for technological advancement within a mature market system is, however, a possible growth opportunity. Take some time to get a feel for the economic and political climates of the countries you’re looking to invest in. Changes in a country’s leadership, talk of intercontinental alliances or the potential of war or upheaval are things to look for when considering how stable an investment will be.
Match portfolio needs with international stock type. There are several different investment packages to consider when choosing international stocks. You can invest in a specific oversees company, or you can invest in a group of companies or even a group of countries.The main types of investment options offered by brokerages are:American depositary receipts (ADR)--These allow investors to invest in international stocks without buying into a foreign exchange.Exchange-traded funds (ETF)--These are, in essence, mutual funds that can be traded just like individual stocks.International funds--These are similar to exchange-traded funds. The only difference is they’re handled by a portfolio manager, and all decisions are made by the portfolio manager.Foreign securities--This is when an investor purchases international stock directly from his broker’s international trading desk.
Choose your broker carefully. More oftentimes than not, U.S. brokers who trade on the international market are trading through domestic market makers. The market maker is the middleman, and he’s the one who’s actually carrying out the trade exchange. As such, market makers make a profit off your investment monies. This is an extra cost that can best be put toward the investment stock itself.Instead, look for brokers who deal directly with oversees traders. Of course, they’ll charge a trading commission, but this charge is substantially lower than what goes to a domestic market maker.
Track currency exchange rates. Investing in oversees stock means your U.S. dollar will be converted to whatever a country’s currency is. The drawback here is not all currencies are created equal.Translating your U.S. dollar into a foreign currency rate means price quote amounts, dividends and fees will be altered to reflect the difference of value in the currencies in play. Make it a point to understand the currency exchange rates that apply to your portfolio makeup and incorporate them into your investment budget planning process.

How to Calculate Par Value of Common Stock (3 Steps)


Look through the company's financial statements for the balance sheet. It should have three sections: assets, liabilities and shareholders' equity. Go to the shareholders' equity section of the balance sheet. Sometimes the company uses the term 'stockholders' equity,' which means the same thing.
Identify the line referring to the company's issuance of common stock. It will say something such as 'book value of common shares outstanding' or 'book value of common shares.' This line will also provide the number of shares outstanding and the par value of the common stock, if any.
If the par value is not explicitly stated, divide the book value of the common shares outstanding by the number of common shares outstanding. The result is the par value for one share of that company's common stock.

Friday, August 28, 2015

How to Sell Stock Without a Broker


Transfer stock in lieu of cash donations to any charity you are gifting. Besides the tax advantage of giving appreciated stock to a charity, most brokerage houses charge charities little or nothing for gifted stock. If the stock is in physical form, merely sign the transfer power on the back of the certificate. For stock held by the broker, the charity will have instructions for you to follow.
Find a buyer for your stock---a family friend, neighbor or relative. It will be necessary to contact the transfer agent to have the stock transferred into the purchasing party's name. Use the stock price as of a certain date as the trade date, so there will be no disagreement among the parties as to the trade amount. Be certain there are no dividend payments pending, and if so, they should be paid to the selling party.
Use DRIP programs where possible. DRIP or dividend reinvestment plans allow you to buy as little as one share of stock from a participating member or a broker and then arrange for all dividends to be paid in the form of additional shares. Not all stocks have such a program, but the stocks that do tend to be large dividend-paying stocks. Shares can then be sold to plan participants, allowing the investor to pay no commissions for either buying or selling stock.
When making large purchases, use stock and sign the stock over to the buyer. He can sell the stock at his expense when he is ready. You avoid the commission and the buyer receives secure funds through ownership of the stock certificate.
Sell stock through an in-the-money covered call. This means writing an option below the current stock price. The premium paid by the call buyer to you, the seller, will more than cover the commissions for the option and the stock sale. This is a popular method used by large institutions to move large quantities of stock.

How to Buy Chrysler Stock (5 Steps)


Establish an account with a stock brokerage company or an investment firm that has the ability to purchase American Depository Receipts (ADR), the American equivalent of foreign stocks. Deposit the required amount of funds into your account.
Determine the number of shares of Fiat stock you wish to purchase. Check the current price per share. Fiat stock trades on the Italian stock exchange of Fiat ADRs trade over-the-counter in the United States as Fiat SPA under the symbol FIATY.
Contact your investment broker and instruct him to enter a Buy order which may be At The Market or you may designate the price you wish to pay per share, which may be lower than the current market price.
Instruct your broker whether you wish to take possession of your stock certificates or if you wish to keep the stock in street name. Keeping the stock in street name provides more security in that you do not have to store your certificates and it makes it more convenient should you decide to sell your shares at a future date.
Continue to watch the major news outlets for breaking stories regarding Chrysler's emergence from bankruptcy. Eventually the U.S. Treasury will sell its stake in the company which may create an opportunity for individual investors to purchase shares. The company may also choose to become a public company again through an initial public offering, or Fiat may decide to spin the company off if it does not perform up to expectation, which may also present an opportunity for purchasing stock in Chrysler.