Investing facts, facts about investing

The rule of 72 is used to find the number of years it takes to double your money at a given interest rate.

(72/[interest rate]) = years until a principle doubles

So, how long will it take to double your money at eight percent interest? Divide 8 into 72 and you get 9 years.

If you collect 7% on your savings in a little over 10 years the amount will be double what it is today.

The rule of 72 also means that you can determine the time it takes for a population to double if it is growing at a steady rate by solving this function:

(72/[rate of growth]) = years for population to double

Reference: http://www.moneychimp.com/features/rule72.htm

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Investing facts, tip about hot stocks

The price of hot stocks like IPOs and tech stocks can rise and fall suddenly.

"In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly."

"To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. "

Reference: http://www.sec.gov/investor/pubs/onlinetips.htm

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The difference between stocks, bonds, and commodities

Stock: The shares of a company or corporation.
Bonds: A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Commodities: an article of trade or commerce, esp. a product as distinguished from a service.

While bonds generally promise a fixed return, earnings on commodities and stocks go up and down as determined by the free market.

Reference: http://dictionary.reference.com

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A couple good places to research bonds

The following companies rate the financial condition of corporations and municipalities issuing bonds. Their ratings are available online and at many public libraries.

* Standard & Poor’s
* Moody’s Investors Services
* Weiss Ratings

Reference: http://www.consumeraction.gov/caw_investing_general_tips.shtml

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Diversify your portfolio

Some investments perform better than others in certain situations. For example, when interest rates go up, bond prices tend to go down. One industry may struggle while another prospers. Putting your money in a variety of investment options can help to reduce your risk.

Reference: http://www.consumeraction.gov/caw_investing_general_tips.shtml

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Where does Warrent Buffett invest his money?

Billionaire Warren Buffett is a legendary investor who has amassed a huge fortune through plays in a wide range of industries.

He tends to favor companies with relatively simple businesses, strong management, consistent earnings, good returns on equity, and little debt.

Reference: http://www.reuters.com/article/wtMostRead/idUSN0631767220080207

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Sadness May Encourage More Extravagance

A new study (2/08) suggests that sadness leads to shopping.

According to the study that will be published in the June 2008 number of Psychological Science, sadness leads to ego-centrist thinking. In other words, a sad person tends to transform into a shopaholic, willing to spend extra money on the same item than neutral-emotion people would buy for a lot less.

�It is the combination of sadness and self-focus that drives the effect, and it turns out that sadness leads to an increase in self-focus,� said Cynthia Cryder, co-author to the study, AFP quotes. �What we think is going on is that sad and self-focused people are feeling pretty bad about themselves and have a decreased valuation, and one way to do this is by acquiring material goods.�

Oh yeah, it also says this therapy does not work. If you�re sad and feel like shopping, don�t!

Reference: http://www.efluxmedia.com/news_Feeling_Sad_Shopping_Is_Not_The_Answer_Study_Warns_13799.html

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	Random Facts The rule of 72 The rule of 72 is used to find the number of years it takes to double your money at a given interest rate. (72/[interest rate]) = years until a principle doubles So, how long will it take to double your money at eight percent interest? Divide 8 into 72 and you get 9 years. If you collect 7% on your savings in a little over 10 years the amount will be double what it is today. The rule of 72 also means that you can determine the time it takes for a population to double if it is growing at a steady rate by solving this function: (72/[rate of growth]) = years for population to double 72 facts rule facts investing facts Reference: http://www.moneychimp.com/features/rule72.htm [ Portland search engine optimization \| Random facts \| ] Investing facts, tip about hot stocks The price of hot stocks like IPOs and tech stocks can rise and fall suddenly. "In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly." "To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. " investing facts stock facts ipo facts tech facts Reference: http://www.sec.gov/investor/pubs/onlinetips.htm [ Portland search engine optimization \| Random facts \| ] The difference between stocks, bonds, and commodities Stock: The shares of a company or corporation. Bonds: A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Commodities: an article of trade or commerce, esp. a product as distinguished from a service. While bonds generally promise a fixed return, earnings on commodities and stocks go up and down as determined by the free market. investing facts stock facts bond facts Reference: http://dictionary.reference.com [ Portland search engine optimization \| Random facts \| ] A couple good places to research bonds The following companies rate the financial condition of corporations and municipalities issuing bonds. Their ratings are available online and at many public libraries. * Standard & Poor’s * Moody’s Investors Services * Weiss Ratings investing facts bond facts Reference: http://www.consumeraction.gov/caw_investing_general_tips.shtml [ Portland search engine optimization \| Random facts \| ] Diversify your portfolio Some investments perform better than others in certain situations. For example, when interest rates go up, bond prices tend to go down. One industry may struggle while another prospers. Putting your money in a variety of investment options can help to reduce your risk. investing facts money facts Reference: http://www.consumeraction.gov/caw_investing_general_tips.shtml [ Portland search engine optimization \| Random facts \| ] Where does Warrent Buffett invest his money? Billionaire Warren Buffett is a legendary investor who has amassed a huge fortune through plays in a wide range of industries. He tends to favor companies with relatively simple businesses, strong management, consistent earnings, good returns on equity, and little debt. investing facts money facts warren buffett facts Reference: http://www.reuters.com/article/wtMostRead/idUSN0631767220080207 [ Portland search engine optimization \| Random facts \| ] Sadness May Encourage More Extravagance A new study (2/08) suggests that sadness leads to shopping. According to the study that will be published in the June 2008 number of Psychological Science, sadness leads to ego-centrist thinking. In other words, a sad person tends to transform into a shopaholic, willing to spend extra money on the same item than neutral-emotion people would buy for a lot less. �It is the combination of sadness and self-focus that drives the effect, and it turns out that sadness leads to an increase in self-focus,� said Cynthia Cryder, co-author to the study, AFP quotes. �What we think is going on is that sad and self-focused people are feeling pretty bad about themselves and have a decreased valuation, and one way to do this is by acquiring material goods.� Oh yeah, it also says this therapy does not work. If you�re sad and feel like shopping, don�t! investing facts sadness facts human facts psychology facts Reference: http://www.efluxmedia.com/news_Feeling_Sad_Shopping_Is_Not_The_Answer_Study_Warns_13799.html [ Portland search engine optimization \| Random facts \| ]