Path: senator-bedfellow.mit.edu!dreaderd!not-for-mail Message-ID: Supersedes: Expires: 17 Mar 2003 10:19:33 GMT References: X-Last-Updated: 2002/08/14 From: lott@invest-faq.com (Christopher Lott) Newsgroups: misc.invest.misc,misc.invest.stocks,misc.invest.technical,misc.invest.options,misc.answers,news.answers Subject: The Investment FAQ (part 6 of 19) Followup-To: misc.invest.misc Reply-To: lott at invest-faq dot com Summary: Answers to frequently asked questions about investments. Should be read by anyone who wishes to post to misc.invest.* Organization: The Investment FAQ publicity department Keywords: invest, finance, stock, bond, fund, broker, exchange, money, FAQ URL: http://invest-faq.com/ Approved: news-answers-request@MIT.Edu Originator: faqserv@penguin-lust.MIT.EDU Date: 01 Feb 2003 10:23:36 GMT Lines: 1012 NNTP-Posting-Host: penguin-lust.mit.edu X-Trace: 1044095016 senator-bedfellow.mit.edu 3950 18.181.0.29 Xref: senator-bedfellow.mit.edu misc.invest.misc:38848 misc.invest.stocks:761210 misc.invest.technical:97002 misc.invest.options:48643 misc.answers:15580 news.answers:245648 Archive-name: investment-faq/general/part6 Version: $Id: part06,v 1.58 2002/08/14 10:20:04 lott Exp lott $ Compiler: Christopher Lott, lott at invest-faq dot com The Investment FAQ is a collection of frequently asked questions and answers about investments and personal finance. This is a plain-text version of The Investment FAQ, part 6 of 19. The web site always has the latest version, including in-line links. Please browse http://invest-faq.com/ Terms of Use The following terms and conditions apply to the plain-text version of The Investment FAQ that is posted regularly to various newsgroups. Different terms and conditions apply to documents on The Investment FAQ web site. The Investment FAQ is copyright 2001 by Christopher Lott, and is protected by copyright as a collective work and/or compilation, pursuant to U.S. copyright laws, international conventions, and other copyright laws. The contents of The Investment FAQ are intended for personal use, not for sale or other commercial redistribution. The plain-text version of The Investment FAQ may be copied, stored, made available on web sites, or distributed on electronic media provided the following conditions are met: + The URL of The Investment FAQ home page is displayed prominently. + No fees or compensation are charged for this information, excluding charges for the media used to distribute it. + No advertisements appear on the same web page as this material. + Proper attribution is given to the authors of individual articles. + This copyright notice is included intact. Disclaimers Neither the compiler of nor contributors to The Investment FAQ make any express or implied warranties (including, without limitation, any warranty of merchantability or fitness for a particular purpose or use) regarding the information supplied. The Investment FAQ is provided to the user "as is". Neither the compiler nor contributors warrant that The Investment FAQ will be error free. Neither the compiler nor contributors will be liable to any user or anyone else for any inaccuracy, error or omission, regardless of cause, in The Investment FAQ or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom. Rules, regulations, laws, conditions, rates, and such information discussed in this FAQ all change quite rapidly. Information given here was current at the time of writing but is almost guaranteed to be out of date by the time you read it. Mention of a product does not constitute an endorsement. Answers to questions sometimes rely on information given in other answers. Readers outside the USA can reach US-800 telephone numbers, for a charge, using a service such as MCI's Call USA. All prices are listed in US dollars unless otherwise specified. Please send comments and new submissions to the compiler. --------------------Check http://invest-faq.com/ for updates------------------ Subject: Exchanges - Ticker Tape Terminology Last-Revised: 19 Sep 1999 Contributed-By: Keith Brewster, Norbert Schlenker, Richard Sauers (rsauers at enter.net), Art Kamlet (artkamlet at aol.com) Every stock traded on the world's stock exchanges is identified by a short symbol. For example, the symbol for AT&T is just T. These symbols date from the days when stock trades were reported on a ticker tape. Ticker symbols are still used today as brief, unambiguous identifiers for stocks. Similar abbreviations are used for stock options and many other securities. Ticker symbols get reused on different exchanges, so you'll sometimes see a qualification ahead of the ticker symbol. For example, the symbol "C:A" refers to a company traded on one of the Canadian exchanges (Toronto, to be exact) with the symbol A. The stock quote services on the web usually understand this notation. It's probably no surprise that the North American-centric services pretty much assume that anything unqualified is traded on a U.S. exchange; I've found that they do not accept something like "NYSE:T" even though they perhaps should. A few stock ticker symbols include a suffix, which seems to differentiate among a company's various classes of common stock. Somem of the quote services allow you to enter the ticker and suffix all run together, while others require you to enter a dot between the ticker and the suffix. For an example, try AKO, classes A and B. Now that you understand a bit about the ticker symbol, there's some more explanation required to understand what appears on the "ticker tape" such as those shown on CNN or CNBC. Ticker tape says: Translation (but see below): NIKE68 1/2 100 shares sold at 68 1/2 10sNIKE68 1/2 1000 shares sold at " 10.000sNIKE68 1/2 10000 shares sold at " The extra zeroes for the big trades are to make them stand out. All trades on CNN and CNBC are delayed by 15 minutes. CNBC once advertised a "ticker guide pamphlet, free for the asking", back when they merged with FNN. It also has explanations for the futures they show. You can also see an explanation on the web at this URL: http://www.cnbc.com/onlycnbc/101/ticker.asp However, the first translation is not necessarily correct. CNBC has a dynamic maximum size for transactions that are displayed this way. Depending on how busy things are at any particular time, the maximum varies from 100 to 5000 shares. You can figure out the current maximum by watching carefully for about five minutes. If the smallest number of shares you see in the second format is "10s" for any traded security, then the first form can mean anything from 100 to 900 shares. If the smallest you see is "50s" (which is pretty common), the first form means anything between 100 and 4900 shares. Note that at busy times, a broker's ticker drops the volume figure and then everything but the last dollar digit (e.g. on a busy day, a trade of 25,000 IBM at 68 3/4 shows only as "IBM 8 3/4" on a broker's ticker). That never happens on CNBC, so I don't know how they can keep up with all trades without "forgetting" a few. NASDAQ uses a "fifth letter" identifier in its ticker symbols. Four letter symbols, and five letter symbols in instances of multiple issues listed by the same company, are listed in newspapers and carried on the ticker screen by CNBC and CNN. These symbols are required to retrieve quotes from quote servers. Here's the complete list of the NASDAQ fifth-letter identifiers with brief descriptions: Symbol Meaning A Class A B Class B C exempt from NASDAQ listing qualifications for limited period D new issue E delinquent in required SEC filings F foreign G First convertible bond H Second convertible bond (same company) I Third convertible bond (same company) J Voting K Nonvoting L misc situations, including second class units, third class warrants, or sixth class preferred stock M Fourth class preferred (same company) N Third class preferred (same company) O Second class preferred (same company) P First class preferred (same company) Q in bankruptcy proceedings R Rights S Shares of beneficial interest T with warrants or rights U Units V When issued and when distributed W Warrants X mutual fund Y American Depositary Receipts Z misc situations, including second class of warrants, fifth class preferred stock or any unit, receipt or certificate representing a limited partnership interest. --------------------Check http://invest-faq.com/ for updates------------------ Subject: Financial Planning - Basics Last-Revised: 22 Oct 1997 Contributed-By: James E. Mallett (jmallett at stetson.edu) One complaint I often hear is that an individual would like to invest but they do not have any money. Financial planning may help many people to overcome this lack of ability to save for investment. With proper planning perhaps you will be able to establish goals and save money to meet these goals. While you can start this personal financial planning yourself, you may soon discover that it will pay you to find a Certified Financial Planner to help in the process. This article gives a short primer on how to start personal financial planning for yourself. To begin the financial planning process, you need specific financial goals. By specific goals, I mean to establish a date to meet the goal and a savings plan that meets your goals. At first these goals may seem unobtainable but continuing the planning process will enable you to evaluate these goals and modify as necessary. Next you need to track your expenses and income until you can develop a yearly statement (cash/flow statement). To see where you are currently, list the value of all your assets and what you owe. Subtract your debts from your assets and you have your current net worth (balance sheet). You should update these statements yearly. Once you have established your income and expenses you can develop a budget. Your aim in establishing a budget is to attempt to increase your income and/or reduce your expenditures so that you have savings to meet your initial goals. If on the first try you are short of funds, do not despair. Try looking at your taxes to see if they can be reduced. Consult a tax attorney if necessary. Analyze your debt to see if it can be consolidated into a lower interest rate loan. Perhaps a home equity loan might fit the bill. Next review your consumption patterns. Are your financial goals worth driving an older automobile; are you shopping for the best prices; and what current expenses that you have are unnecessary? By getting your finances in order, you will gain funds to save and invest toward your goals. If you do not have sufficient funds to meet your goals, modify them. Look for opportunities in the future to reestablish these goals. Seek the aid of financial professionals, educate yourself with personal finance books and magazines. Here are a few resources on financial planning. * James E. Mallett's site about financial planning: http://improveyourfinances.com/ * The International Association for Financial Planning offers a sales pitch and some information on their site: http://www.planningpaysoff.org/ --------------------Check http://invest-faq.com/ for updates------------------ Subject: Financial Planning - Choosing a Financial Planner Last-Revised: 20 Apr 1998 Contributed-By: James E. Mallett (jmallett at stetson.edu) Virtually anyone with moderate wealth or a decent income could benefit from the services of a financial planner. By a financial planner, I mean someone with the expertise to produce a comprehensive financial plan for an individual household. This plan should cover the household's financial goals, budget, insurance and risk review, asset allocation, retirement plan, and a review of an estate plan. Such detailed planning is unlikely to be meet by brokers and agents interested in commissions on financial products they sell. A financial planner has a broad knowledge of areas such as tax planning, investments, and estate law but is unlikely to be the financial professional you require in these individual areas. Rather the financial planner can help coordinate your financial planning with your accountant, insurance agent, investment professional, and estate lawyer. The broad expertise that a professional financial planner possesses will help insure that your financial goals are met and that all areas of your financial life are reviewed. Hiring a planner will help you avoid expensive financial mistakes that could seriously damage your financial health. It would not be difficult for most financial planners to find serious gaps in most household finances, gaps that are easily worth the cost of the planner's services. Even individuals with expert knowledge in one finance field such as investments can overlook areas such as insurance or estate planning. Few people have the time, desire, or expertise to do a complete financial plan for themselves. Saying that most would benefit from using a financial planner is not to imply that there are not wide differences in abilities and costs among planners. Few areas will pay richer rewards for the public than gaining basic knowledge in personal finance. If one is not careful, fees and commissions could negate much, if not all, of the benefit of using a financial planner. This article lists a few issues to consider when choosing a financial planner. The first step in looking for a financial planner is to limit your search to someone who is certified in financial planning. Two certifying associations that I would recommend are the Certified Financial Planner and the Personal Financial Specialist (given to qualifying Certified Public Accountants). The second step is to seek out recommendations from people that you respect for names of financial planners and interview these planners. Your aim is to find someone who meets your needs and who will look after your interests. A problem that exists in selecting financial professionals is that what is in your best interest may fall a distant second to what is in their interest of making a profit. The third question you need to ask is how does the financial planner receive compensation and what will this compensation cost you annually. In calculating the costs, one must consider fees, commissions, transaction costs, and (if any) what are the annual fees of the financial products that they recommend (such as mutual fund management fees). It is quite possible that after adding sales loads and management fees, the after-expense return that you receive from equities will not justify the risk. Recent high market returns have served to mask the fleecing of many American investors. Financial planners fall into two broad types: fee-only financial planners and commission and/or fee-based financial planners. While some give the nod automatically to fee-only financial planners, it will depend on your particular circumstances as to which one will be best for you. If you only need a comprehensive financial plan and you are willing to invest your funds yourself, than a fee-only financial planner who charges by the hour may be your best choice. If you want the financial planner to manage your money, than many fee-only financial planners have moved to an asset-based fee, normally 0.5% to 1.5%, of your assets. Two factors should be kept in mind. One is that this fee is charged annually. Second, most financial planners put your funds to work in a mutual fund and that means you continue to pay the mutual fund another management fee annually. Since evidence and theory suggest that none of these efforts will result in outperforming an index mutual fund, one might wonder why not go directly there and save about 2% in management fees. Plus, on average, you will have a mutual fund that will outperform most professionals. With commission-based financial planners, individuals run the risk that the commissions charged on the financial products that they recommend will add greatly to the cost of the financial planning. The risk of conflict of interest arises when the planner receives greater compensation based on what financial products that they recommend. It may be possible, however, for some individuals that the free or reduced-cost financial plan would not be offset by the higher commissions. For example, the one-time load on the mutual fund might be cheaper than paying the annual 1.5% fee to a fee-based financial planner. You must compare all of these costs when deciding which financial planner is the best for you. Given this information on financial planners, it is clear that knowledge on the consumer's part is very important. While many households will spend a great deal of time shopping for an automobile, the decision of whom to trust with their wealth too is often made without much thought. As a result Americans spend many billions more on financial services than what is really needed. For more insights from James E. Mallett about financial planning, please visit his site: http://www.stetson.edu/~jmallett/finplan.htm For a list of 10 questions you should ask before hiring a financial planner, visit this government site: http://www.pueblo.gsa.gov/cic_text/money/financial-planner/10questions.html --------------------Check http://invest-faq.com/ for updates------------------ Subject: Financial Planning - Compensation and Conflicts of Interest Last-Revised: 19 Apr 2000 Contributed-By: Ed Zollars (ezollar at mindspring.com) This article discusses the primary ways that financial planners are paid for their services, and illustrates the biases and conflicts of interest that invariably are present in each compensation scheme. Hourly rate When a financial planner is paid an hourly rate, he or she may have a bias towards selling the client more advice than is needed, and/or selling additional hourly services to the client. However, the actual financial product sold to the client, or even if any is sold at all, is a matter of indifference. A practical problem is that this advice, if done properly (thorough investigation by adviser into the entire background of the client) is going to be very expensive because it needs to be customized to the client. Thus, we see very little of this type of advice except for specialized areas (like taxation, business law, etc.). Flat rate If a financial planner is paid a flat rate, he or she may have a bias towards giving the client canned advice in order to gain efficiencies. That can lead to not tailoring the advice to the specific situation because that adds (uncompensated) time to the engagement. Additionally, there's a bias towards selling additional services not included in the initial package. Again, generally indifference as to whether a sale is closed on an actual investment, or which investment actually gets chosen. The advantage to the client is that he or she knows the cost going in. Percent of assets under management paid annually If a financial planner receives each year a percentage of assets under management, he or she may have a bias towards keeping as much under management as possible, thus leading to some bias against using funds for other purposes (including paying down debt). This structure may also encourage the advising of riskier ventures, since they present the adviser with the potential for higher compensation. Obviously, the client does have to put some assets under management (so there is a bias to do something), but the particular investments are a matter of indifference. Commissions on sales When a planner receives a commission on any product sold to the client, this can lead to a bias towards closing the sale on a product that will pay the adviser a commission and discouraging the acquisition of products that won't pay this adviser a commission. Since advice is offered as a method to encourage the client to get moving towards a buy, these advisers tend to be rather thorough in raising issues that relate to their products (finding needs). Will tend to have a bias to be less thorough in raising issues for which the solution doesn't involve their product (so in estate planning there will be lots of talk about ILITs or CRUTs, but little talk about FLPs, AB trusts, etc.). A practical advantage is that because the client can simply walk away, this can be the least expensive way to get a good quick general education on the subject at hand. Also, many investments sold by commissioned salespeople spread the fee over a number of years, so it becomes a payment on the installment plan that may allow some people to receive advice they need. Note that any competent professional will actively control for any bias introduced by the compensation mechanism. Therefore, none of the issues raised here represent an insurmountable flaw of a particular method of compensation. Too often this sort of analysis can degnerate into a mudslinging contest that suggests there is only one right way to handle every situation, which is simply not the case. In the end, a client of a financial planner should ask/recognize the ways by which the planner gets paid, and use that information to note any bias that might be present in the advice given. --------------------Check http://invest-faq.com/ for updates------------------ Subject: Financial Planning - Estate Planning Checkup Last-Revised: 20 June 1999 Contributed-By: Nolo Press This article is copyright © Nolo Press 1999 and was reprinted with specific permission. For more great, free information about legal matters, visit their website: http://www.nolo.com Lots of Americans haven't made even a simple will, to say nothing of a more comprehensive plan to avoid probate or save on estate taxes. And even those who have thought about what should happen to their property when they eventually shuffle off to Nirvana haven't updated their plan in many years. We're not going to nag, but we are going to chime in with a few suggestions as to what your estate plan should look like. Oh yes, in case you're new to this area, estate planning is simply a fancy term for the process of arranging for what will happen to your property (estate) if a particularly large and lethal brick falls on your head. Depending on your age, health, wealth and innate level of cautiousness, you may not need to do much at all in the way of estate planning. And even if you do decide you need a will or a trust, you probably won't need a lawyer. Especially if you aren't dripping with Picassos or fat investment accounts, it is easy and safe to prepare most basic estate planning documents yourself. Just learn what you're doing by using a good self-help book or piece of software. We've arranged our tips by some broad categories of family situation and age. As they say, check all that apply. But keep in mind that age is an imprecise proxy for life expectancy, which is affected by all sorts of other factors--heavy smoking while participating in extreme sports and driving a motorcycle, for example. It's up to you to add or subtract a few years, based on your health and lifestyle. You're 25 and Single What are you doing reading about estate planning? You're supposed to be surfing the Net or dancing until dawn. But you might as well keep reading; this won't take long. At your age, there's not much point in putting a lot of energy into estate planning. Unless your lifestyle is unusually risky or you have a serious illness, you're very unlikely to die for a long, long time. If you're an uncommonly rich 25-year-old, though, write a will. (Bricks can fall on anyone.) That way you can leave your possessions to any recipient you choose--your boyfriend, your favorite cause, the nephew who thinks you're totally cool. If you don't write a will, whatever wealth you leave behind will probably go to your parents. Think about it. You're Paired Up, But Not Married If you've got a life partner but no marriage certificate, a will is almost a must-have document. Without a will, state law will dictate where your property goes after your death, and no state gives anything to an unmarried partner. Instead, your closest relatives would inherit everything. Other options to make sure that your partner isn't left out in the cold after your death is to own big-ticket items, such as houses and cars, together in "joint tenancy" with right of survivorship. Then, when one of you dies, the survivor will automatically own 100% of the property. You Have Young Children Having children complicates life--but then, you already know that. Estate planning is no exception. Here's what to think about. First, write a will. Nothing fancy--just a document that leaves your property to whomever you choose and names a guardian for your children. The guardian will take over if both you and the other parent are unavailable. That's an unlikely situation, but one that's worth addressing just in case. If you fail to name a guardian, a court will appoint someone--possibly one of your parents. The other big reason to write a will is that if you don't, some of your property may go not to your spouse, but directly to your children. When given a choice, most people prefer that the money go to their spouse, who will use it for the kids. The problem with the children inheriting directly is that the surviving parent may need to get court permission to handle the money--a waste of time and money in most families. Second, think about buying life insurance so the other parent will be able to replace your earnings if that damn brick chooses you. Term life insurance is relatively cheap, especially if you're young and don't smoke. You can shop for the best bargain by consulting free services that compare the rates of lots of companies. Look for their ads in personal finance magazines. You're Middle-Aged and Know the Names of at Least Three Mutual Funds If you've made it to a comfortable time in life--you've accumulated some material wealth and enough wisdom to let you know that other things matter, too--you will probably want to take some time to reflect on what you will eventually leave behind. But given that you may well live another 30 or 40 years, there is no need to obsess about it. Chances are your conclusions will be different in ten or 20 years, and your estate plan will change accordingly. To save your family the cost (and hassles) of probate court proceedings after your death, think about creating a revocable living trust. It's hardly more trouble than writing a will, and lets everything go directly to your heirs after your death, without taking a circuitous and expensive detour through probate court. While you're alive, the trust has no effect, and you can revoke it or change its terms at any time. But after your death, the person you chose to be your "successor trustee" takes control of trust property and transfers it according to the directions you left in the trust document. It's quick and simple. There are other, even easier ways to avoid probate: you can turn any bank account into a "payable-on-death" account simply by signing a form (the bank will supply it) and naming someone to inherit whatever funds are in the account at your death. You can do the same thing, in 29 states, with securities. (Ask your broker if your state has adopted a law called the Uniform Transfer-on-Death Securities Registration Act.) If you have enough property to worry about federal estate taxes, think about a tax-avoidance trust as well. Currently, estates worth more than $650,000 are taxed; that amount will increase to $1 million by 2006. Most estates are never subject to tax, but if estate tax does take a bite, it can be a big one. Tax rates now start at 37% and rise to 55% for estates worth more than $3 million. One way to reduce estate tax is to give away property before your death. After all, if you don't own it, it can't be taxed. But in 2002, gifts larger than $11,000 per year per recipient are subject to gift tax, which applies at the same rates as does estate tax. Still, an annual gifting plan can reduce the size of even a big estate, especially if you have a covey of kids and grandkids. Gifts to your spouse (as long as he or she is a U.S. citizen), gifts that directly pay tuition or medical bills, or gifts to a tax-exempt organization are exempt from gift tax. Another way to cut taxes is to create certain kinds of trusts. The most common, the AB trust, is one that couples use. Each spouse leaves property to their children--with the crucial condition that the surviving spouse has the right to use the income that property produces for as long as he or she lives. In some circumstances, the surviving spouse may even be able to spend principal. By 2006, an AB trust will shield up to $2 million from estate tax. Charitable trusts, which involve making a gift to a charity and getting some payments back, can also save on both estate and income tax. There are many other varieties of trusts; learn about them on your own, and then have an experienced estate planning lawyer draw up the documents you decide on. You're Elderly or Ill Now is the time to take concrete steps to establish an estate plan pronto. It's also a good idea to think about what could happen before your death, if you become seriously ill and unable to handle your own affairs. First, the basics: Consider a probate-avoidance living trust and, if you're concerned about estate taxes, a tax-saving trust. (These devices are discussed just above.) Write a will, or update an old one. Then, although no one wants to do it, take a minute to think about the possibility that at some time, you might become incapacitated and unable to handle day-to-day financial matters or make healthcare decisions. If you don't do anything to prepare for this unpleasant possibility, a judge may have to appoint someone to make these decisions for you. No one wants a court's intervention in such personal matters, but someone must have legal authority to act on your behalf. You can choose that person yourself, and give him or her legal authority to act for you, by creating documents called durable powers of attorney. You'll need one for your financial matters and one for healthcare. (Some states allow the two to be combined, but it's usually not a good idea. They're used in completely different situations.) You choose someone you trust to act for you (called your attorney-in-fact) and spell out his or her authority. If you wish, you can even state that the document won't have any effect unless and until you become incapacitated. Once signed and notarized, it's legally valid, and your mind can be at ease. --------------------Check http://invest-faq.com/ for updates------------------ Subject: Information Sources - Books Last-Revised: 16 Jul 2001 Contributed-By: Chris Lott ( contact me ) This article offers a large list of books about investing and personal finance, divided into four sections: books for beginners, books for experienced investors, books for professional traders and speculators, and finally books that I call war stories - insider's tales about the world of finance. The lists are sorted by the author's last name within each section. Amazon recommends: [IMAGE] You can buy books right from here! Right now! Send a gift to someone who has one of these books on their wish list! But enough hype. I've enrolled as an Amazon.com associate, so if you buy any of the books that are listed here from Amazon.com by using the links on this page, I get a small referral fee. I've tried to find paperback (i.e., cheap) editions of all the books for these links, but please let me know if I missed one. The best thing about the Amazon site is that each book listing includes capsule summaries and reviews contributed by readers, so you might want to click on the links to check out each book. Featured Author for Beginners: Eric Tyson Here are three books by Eric Tyson that are part of the "..for Dummies" series. Readers praise his writing for its practical advice, objectivity, and gentle humor. These books offer a great way to start learning about personal finance and investing. Amazon sells these titles for about $20 each including the shipping charges. * Eric Tyson Investing for Dummies (out of print, but available used) * Eric Tyson and James C. Collins Mutual Funds for Dummies * Eric Tyson Personal Finance for Dummies Books for beginning investors These books concentrate on personal finance, budgeting, and also offer some introductory material on basic investment strategies. * Barbara Apostolou, Nicholas G. Apostolou Keys to Investing in Common Stocks (Barron's Business Keys) * Ginger Applegarth Wake Up and Smell the Money * Janet Bamford, Jeff Blyskal, Emily Card, and Aileen Jacobson The Consumer Reports Money Book: How to Get It, Save It, and Spend It Wisely (3rd edn) * Wayne G. Bogosian and Dee Lee The Complete Idiot's Guide to 401(k) Plans * Samuel Case The First Book of Investing: The Absolute Beginner's Guide to Building Wealth Safely * David Chilton The Wealthy Barber * George S. Clason The Richest Man in Babylon * Jonathan Clements 25 Myths You'Ve Got to Avoid If You Want to Manage Your Money Right: The New Rules for Financial Success * John Downes and Jordan Elliot Goodman Dictionary of Finance and Investment Terms * Ric Edelman The Truth About Money: Because Money Doesn't Come With Instructions (2nd edition) * Louis Engel How to Buy Stocks * David Gardner and Tom Gardner You Have More Than You Think: The Motley Fool Guide to Investing What You Have * Alvin Hall Getting Started in Stocks (3rd edn.) * Ken Kurson The Green Magazine Guide to Personal Finance: A No B.S. Book for Your Twenties and Thirties * Barbara Loos I Haven't Saved a Dime, Now What?! * James Lowell Investing from Scratch: A Handbook for the Young Investor * Peter Lynch and John Rothchild Learn to Earn: A Beginner's Guide to the Basics of Investing and Business * Dale C. Maley Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pros * Kenneth M. Morris and Alan M. Siegel The Wall Street Journal Guide to Understanding Money and Investing * Kenneth M. Morris and Alan M. Siegel The Wall Street Journal Guide to Understanding Personal Finance * Kenneth M. Morris, Alan M. Siegel, and Virginia B. Morris The Wall Street Journal Guide to Planning Your Financial Future * W. Patrick Naylor 10 Steps to Financial Success: A Beginner's Guide to Saving and Investing * Suze Orman The 9 Steps to Financial Freedom * Kenan Pollack and Eric Heighberger The Real Life Investing Guide * Jonathan D. Pond 4 Easy Steps to Successful Investing * Jane Bryant Quinn Making the Most of Your Money * Claude Rosenberg Stock Market Primer * John Rothchild A Fool and His Money: The Odyssey of an Average Investor * Alfred V. Scillitani Basic Investing Guide For The New Investor * Kathleen Sindell Investing Online for Dummies (3rd edn.) * Andrew Tobias The Only Investment Guide You'll Ever Need * Eric Tyson Investing for Dummies * Eric Tyson and James C. Collins Mutual Funds for Dummies * Eric Tyson Personal Finance for Dummies * Diane Vujovich 10 Minute Guide to the Stock Market Books for intermediate investors These books assume you're comfortable with the basics of stocks, mutual funds, bonds, and other securities. They offer many investment strategies: what to buy, what to sell, and when to do so. * Ted Allrich and William O'Neil The On-Line Investor: How to Find the Best Stocks Using Your Computer * Frank Armstrong Investment Strategies for the 21st Century This book is available from the author's web site at no charge, although registration is required. * Peter Bernstein Against the Gods: The Remarkable Story of Risk * Peter Bernstein Capital Ideas: The Improbable Origins of Modern Wall Street * John C. Bogle Bogle on Mutual Funds * John C. Bogle Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor * James W. Broadfoot Investing in Emerging Growth Stocks * Mary Buffett and David Clark Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor * Frank Cappiello New Guide to Finding the Next Superstock * Charles B. Carlson Buying Stocks Without a Broker * Samuel Case Big Profits from Small Stocks: How to Grow Your Investment Portfolio by Investing in Small Cap Companies * Burton Crane The Sophisticated Investor * John M. Dalton How the Stock Market Works * Nicolas Darvas How I Made 2,000,000 in the Stock Market * William Donoghue Mutual Fund Superstars * David N. Dreman Contrarian Investment Strategies: The Next Generation * Stephen Eckett Investing Online: Dealing in Global Markets on the Internet * Kenneth Fisher Super Stocks * Norman G. Fosback Stock Market Logic * David Gardner and Tom Gardner The Motley Fool Investment Workbook * David Gardner and Tom Gardner The Motley Fool Investment Guide: How the Fool Beats Wall Street's Wise Men and How You Can Too * Gary Gastineau The Stock Options Manual * Michael Gianturco How to Buy Technology Stocks * Benjamin Graham and Warren E. Buffett The Intelligent Investor: A Book of Practical Counsel * Christopher Graja and Elizabeth Ungar Investing in Small-Cap Stocks * William Greider Secrets of the Temple: How the Federal Reserve Runs the Country * C. Colburn Hardy The Fact$ of Life * Peter I. Hupalo Becoming an Investor: Building Wealth by Investing in Stocks, Bonds, and Mutual Funds * Investor's Business Daily Investor's Business Daily Guide to the Markets * David Kansas and James Cramer The Street.Com Guide to Smart Investing in the Internet Era * Harvey C. Knowles and Damon H. Petty The Dividend Investor * Robert Lichello How to Make $1,000,000 in the Stock Market - Automatically * Jeffrey B. Little and Lucien Rhodes Understanding Wall Street * Gerald M. Loeb The Battle for Investment Survival * Peter Lynch and John Rothchild Beating the Street * Peter Lynch and John Rothchild One up on Wall Street also available: audio cassette edn. * Burton Malkiel A Random Walk Down Wall Street This is a classic, and offers a highly readable argument for index funds (also known as modern portfolio theory). * Geoffrey A. Moore, Paul Johnson, and Tom Kippola The Gorilla Game: An Investor's Guide to Picking Winners in High Technology * William J. O'Neil How to Make Money in Stocks: A Winning System in Good Times or Bad * James O'Shaughnessy How to Retire Rich: Time-Tested Strategies to Beat the Market and Retire in Style * James P. O'Shaughnessy Invest Like the Best: Using Your Computer to Unlock the Secrets of the Top Money Managers * James P. O'Shaughnessy What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time * Carl H. Reinhardt, Alan B. Werba, and John J. Bowen The Prudent Investor's Guide to Beating the Market * Hildy Richelson and Stan Richelson Straight Talk about Bonds and Bond Funds * L. Louis Rukeyser How to Make Money in the Stock Market * Terry Savage New Money Strategies for the 1990's * Charles Schwab How to be Your Own Stockbroker * Dhun H. Sethna and William O'Neil Investing Smart: How to Pick Winning Stocks With Investor's Business Daily * Robert Sheard The Unemotional Investor: Simple Systems for Beating the Market * Jeremy J. Siegel Stocks for the Long Run * Michael Sincere and Deron Wagner The Long-Term Day Trader * John A. Tracy How to Read a Financial Report * John Train New Money Masters * Venita Vancaspel Money Dynamics for the 1990s * John G. Wells Kiss Your Stockbroker Goodbye: A Guide to Independent Investing * Martin E. Zweig and Morrie Goldfischer Martin Zweig's Winning on Wall Street (revised and updated) Books for expert investors, especially concerning technical analysis These books are aimed at people who have a solid understanding of finance and/or trade for a living. There are quite a few on technical analysis for the "chartists" out there. * Steven B. Achelis Technical Analysis from A to Z * Nicholas G. Apostolou Keys to Investing in Options and Futures * Robert C. Beckman Elliott Wave Explained: A Real-World Guide to Predicting and Profiting from Market Turns * Jake Bernstein The Compleat Day Trader: Trading Systems, Strategies, Timing Indicators, and Analytical Methods * Peter Bernstein (ed.) The Portable MBA in Investment * Tushar S. Chande and Stanley Kroll The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators * Robert W. Colby and Thomas A. Meyers Encyclopedia of Technical Market Indicators * John C. Cox and Mark Rubenstein Options Markets * Thomas R. Demark New Market Timing Techniques: Innovative Studies in Market Rhythm and Price Exhaustion * Mark Douglas The Disciplined Trader * Robert D. Edwards and John Magee Technical Analysis of Stock Trends * Alexander Elder Trading for a Living: Psychology, Trading Tactics, Money Management * Marc Friedfertig and George West The Electronic Day Trader * A. J. Frost, Robert J. Prechter, and Robert R. Prechter Elliott Wave Principle: Key to Market Behavior Special offer! I'll sell you a brand-new copy of the 20th Anniversary Edition of the Elliott Wave Principle for just $15 including shipping in the US! Contact me for more information. * Benjamin Graham and David L. Dodd Security Analysis * John C. Hull Options, Futures, and Other Derivatives * Jonathan E. Ingersoll Theory of Financial Decision Making * R. A. Jarrow Modelling Fixed Income Securities and Interest Rate Options * William L. Jiler How Charts Can Help You in the Stock Market * Jeffrey Katz and Donna L. McCormick The Encyclopedia of Trading Strategies * Charles Lebeau and David W. Lucas Technical Traders Guide to Computer Analysis of the Futures Market * John F. Magee Analyzing Bar Charts for Profit * Lawrence G. McMillan Options as a Strategic Investment * Robert Merton Continuous Time Finance * John J. Murphy Technical Analysis of the Futures Markets * John J. Murphy Study Guide for Technical Analysis of the Futures Markets: A Self-Training Manual * Sheldon Natenberg Option Volatility and Pricing: Advanced Trading Strategies and Techniques * Robert Pardo Design, Testing, and Optimization of Trading Systems * Robert R. Prechter and R. N. Elliott R. N. Elliott's Masterworks: The Definitive Collection * Martin J. Pring Martin Pring's Introduction to Technical Analysis * Martin J. Pring Technical Analysis Explained * Peter Ritchken Options: Theory, Strategy, and Applications * Robert P. Rotella The Elements of Successful Trading * William F. Sharpe, Gordon J. Alexander, and Jeffery V. Bailey Investments * Clifford Sherry The Mathematics of Technical Analysis * Victor Sperandeo Trader Vic II : Principles of Professional Speculation * Robert A. Taggart Quantitative Analysis for Investment Management * Nassim Taleb Dynamic Hedging: Managing Vanilla and Exotic Options * Michael P. Turner Day Trading into the Millennium * Stan Weinstein Stan Weinstein's Secrets for Profiting in Bull and Bear Markets Analysis, commentary, and war stories about investments These books offer analysis, commentary, and war stories from finance insiders about the trading and investment world. They probably won't help you pick stocks, but they're fun to read if you're interested in finance and markets. * Po Bronson Bombardiers * Connie Bruck The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders * Bryan Burrough and John Helyar Barbarians at the Gate: The Fall of RJR Nabisco * Daniel Fischel Payback: The Conspiracy to Destroy Michael Milken and His Financial Revolution * Edwin Lefevre Reminiscences of a Stock Operator * Michael Lewis Liar's Poker: Rising Through the Wreckage on Wall Street * Charles MacKay, Josef De La Vega, and Martin S. Fridson Extraordinary Popular Delusions and the Madness of Crowds and Confusion De Confusiones * Victor Niederhoffer The Education of a Speculator * Jim Rogers Investment Biker: Around the World with Jim Rogers * Robert J. Shiller Irrational Exuberance * James B. Stewart Den of Thieves If you can't find what you're looking for on Amazon.Com, you might check out The Trader's Library of Columbia, MD. They maintain a web site that has over 600 investment titles. http://www.traderslibrary.com Those who are just learning about the stock market may wish to have a look at the article in the FAQ with advice for beginners . --------------------Check http://invest-faq.com/ for updates------------------ Compilation Copyright (c) 2002 by Christopher Lott. .