Ebook Investing in an uncertain economy for dummies: Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Investing in an uncertain economy for dummies: Part 2
Ebook Investing in an uncertain economy for dummies: Part 2
178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2 categories.You can find growth stocks and value stocks, blue chips and orphans, Industrials and financials. The list goes on and on. But the basic starting point is market capitalization, or size: that is, how much Is a company worth? How big Is It?Using the market-capitalization measure, stocks ar Ebook Investing in an uncertain economy for dummies: Part 2e categorized into three broad groups: large caps, mid caps, and small caps. These terms frequently appear In the names of mutual funds that focus onEbook Investing in an uncertain economy for dummies: Part 2
particular segments of the stock market.In this strategy, you look at one of the best ways to ease the uncertainty of Investing In good times and bad:178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2formance of one category and offset the declines In another. For most Individual Investors, the best way to diversify by cap size is through mutual funds or exchange-traded funds (ETFs) rather than individual stocks. (See Strategy #21 for Info on mutual funds: Strategy #23 discusses ETFs.)Knottf the Ebook Investing in an uncertain economy for dummies: Part 2 Market Cap CategoriesThe market-capitalization measure that people use to categorize stocks as large caps, mid caps, or small caps Is a simple calculEbook Investing in an uncertain economy for dummies: Part 2
ation that involves multiplying the number of outstanding shares In a company by the price of a single share. For example, a company with 100 million 178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2erent Institutions use different standards that can change with market conditions. But In general, sizes are defined In the following manner:p" Large cap: These stocks represent the largest companies trading on Wall Street and usually feature companies with market capitalization of $5 billion or mor Ebook Investing in an uncertain economy for dummies: Part 2e. They Include some of the best-known companies In the United States, such as General Electric, Microsoft, and Bank of America. They also Include lesEbook Investing in an uncertain economy for dummies: Part 2
ser known companies such as Schlumberger Ltd., an oil-field services company, and Avery Dennison Corp., a label maker.This category accounts for about178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2x, or S&P500.p" Mid cap: This category encompasses stocks that fall within a market capitalization range of $2 billion to $5 billion. Though considered medium size by Wall Street, a number of nationally known companies such as 3Com Corp., American Eagle Outfitters, and Netflix. Inc., are mid caps. M Ebook Investing in an uncertain economy for dummies: Part 2id cap benchmarks include the Standard & Poor's MidCap 400 Index and the Russell Midcap Index.w Small cap: This group encompasses publicly traded compEbook Investing in an uncertain economy for dummies: Part 2
anies with market capitalizations of less than $2 billion. Though they account for only about 10 percent of the U.S. stock market in dollar value, sma178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2oncrete. Inc.. Kosan Biosciences. Inc., and Illumina. Inc.A subcategory of small caps known as micro caps makes up the smallest of the small in terms of market capitalization. The definition of a micro cap varies widely, with some people starting at a market capitalization of $500 million or less. O Ebook Investing in an uncertain economy for dummies: Part 2thers use a $100 million starting point. Either W'ay. these are the riskiest of stocks and are best avoided by most individual investors. Many micro cEbook Investing in an uncertain economy for dummies: Part 2
aps qualify as penny stocks because their shares regularly trade for less than $1.Get the Right Mix in your PortfolioDifferent types of investors may 178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2e 42-1 to see how the stock categories compare.ISO Part III: Demystifying Risk - Accumulating and Protecting WealthTable 42-1Comparing Large, Mid, and Small Cap StocksSizeMakeupReturnsDividendsIdeal forLargeOlder andLess risk forThey typicallyThose whocapsbetter-investorsfeature higherwant theestabl Ebook Investing in an uncertain economy for dummies: Part 2ishedalso meansdividend pay-inflation-companies: inless potentialments thanbeatingdifficult times,for futuremid caps orreturns ofthey stand agrowth. TEbook Investing in an uncertain economy for dummies: Part 2
hesmall caps,stocks with-better chancechances ofwhich canout takingof survivingseeing a stockmake largeon too muchthan youngprice doublecaps particu-r178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number of Ebook Investing in an uncertain economy for dummies: Part 2capsnies on therisky thanpay inves-who seek178*42Diversify Your Stock Portfolio by Size•••••••••••••••••••••••••••••By David McPhersonyou can break down stocks Into an almost endless number ofGọi ngay
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