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Saturday, August 16, 2008

A beginners guide to stock investment

Investing in stocks can prove to be a very profitable thing for you. However you may require learning the ins and outs of stock market before you invest your valuable cash. The stock market functions much like a public sale. it's an auction-based marketplace, with an agent acting as an intermediary who checks buyers and sellers of stocks. The price of a stock is evaluated by how much he buyer wants to pay and how little the seller is willing to put up for sale. The stock prices you watch on the Internet or in your local newspaper are from the last stock trades of the previous day. This type of information also informs you what the best rates are that buyers will pay for a share, in addition to the best price a seller will have. The stock rates are continually varying - going up and down by as little as cents or as much as a few bucks.
The good thing is that common stocks have exceeded nearly all other assets. Statistics have revealed that common stocks have an average annual return of approx. 14% after the end of World War II, even though there have been years when the market has decreased 20% or more. These decreases are difficult to manage, but you have to comprehend that the market has gone back each time and has gone on to bring in even greater returns in time.
Majority of financial advisors will advise you that you should not invest a lot in the stock market if you need cash back in a shorter period of time. However, investing a little in reliable companies can be gainful. The benefit of long-term investing is saving on taxes. If you hold on to your stocks, or sell at a higher price than you paid, you must pay capital gains on the earnings. It you possess a stock for less than a year; your short-term capital gain tax rate is nearly equivalent to your federal tax bracket.

Let's consider investing in a nationally renowned startup airline company such as Baltia Air Lines, which has prearranged a three-year lease of its Boeing seven hundred forty-seven aircraft. In addition to this, the company has leased space at JFK International Airport in New York, Terminal 4, for its base of operations. Baltia Air Lines plans to set up its initial route network by adding additional airplanes and non-stop routes from JFK to Riga, Moscow, Kiev and Minsk. The sustained affluence of Southwest Airlines® and the recent success of JetBlue® demonstrate the rewarding and expanding market for new U.S. niche carriers such as Baltia Air Lines, an ultimate choice for making your investments.

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