Check out ETX Capital’s Spread Betting Platform

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So lets start with:

What is Spread Betting exactly?

Spread betting is an exciting and fast-paced method of trading which allows you to take a position without actually owning the options in question; the main advantage being that your initial deposit only needs to be a fraction of the actual price of the product.

Who is ETX Capital?

ETX Capital is the brand name of the holding company Monecor Ltd which is authorized and regulated by the Financial Conduct Authority to provide financial trading services. The company specializes in providing its customers with access to multiple types of markets through derivatives such as CFDs and spread bets. Since the establishment of the company’s roots in the early 70s, the company’s growth had been driven by unrivalled customer service. This customer orientated approach is also the guiding principle behind all of ETX Capital business operations, from the Sales, Client Support and its technical operations.

Why should I use ETX Capital for Spread Betting?

By selecting ETX Capital as your spread betting provider, you will receive;

  • Thousands of spread betting markets to choose from – including Indices, Currencies, Commodities and Equities.
  • 4 Different Trading PlatformsETX Trader, ETX TraderPro, ETX MT4 and ETX Binary – each tailored to suit a different trading style.
  • Award Winning Services
  • 2011 – Best Value for Money – Investment Trends
  • 2012 – Broker with the Best Online Charts – Money AM
  • 2013 – Best Provider of Forex Trading Tools and Software – UK Forex Awards
  • High quality customer service – Our multilingual Customer Service Team is here to answer any questions or solve any difficulties which you might be experiencing. ETX also offers a support website available in more than fifteen different languages, giving a wide range of answers to frequently asked questions.
  • An education programme – ETX runs international trading seminars, online trading webinars and extensive trading courses for clients. For more information, visit our Education and Tools page.
  • Significant security measures and FCA regulation – ETX Capital is regulated by the UK’s Financial Conduct Authority. Client funds are secured in trust with top tier banks and kept completely separate from company money. ETX Capital is also part of the Financial Services Compensation Scheme; in the unlikely event of company bankruptcy, individual clients are entitled to up to £50,000 worth of compensation.

ETX Capital Platform

Their technological advanced proprietary platform is powerful and fast. Trades can be executed within a time span of less than a second letting traders lock in the prices that they want. In addition, Trade-through charts capability and one click trade execution features helps to cut down the traders’ trading time. Other main strengths about the ETX Capital Proprietary platform include features such as watch lists, guaranteed stops.

So to Summarize

ETX Capital’s spread size is one of the tightest available on the market, starting from just 0.5 with a minimum stake of just 50p. The small spread combined with the low stake make it an ideal place for beginners who have less cash to trade with. However, the spread size may be increased if a position is opened outside of regular exchange trading hours.

No deposit is required to open an account and transfers as low as 1p can be accepted from debit and credit cards.

ETX Capital is also a good source of spread betting education and customers can use free webinar sessions to acquire more knowledge about the market. They also offer seminars for traders to attend in person which are suitable for all levels of experience and are a relatively unusual benefit amongst spread betting firms.

Whilst trading, there are a number of resources supplied by ETX Capital as a means of helping investors keep up to date. A global newswire provides an ongoing news stream of important economic events and news from around the world, while early birds can enjoy the Daily Market Bite, a snapshot of what’s hot and what’s not and what to expect in the day ahead.

In the event of any problems, all customers have their own account executive contact at ETX Capital and can reach them via a personal email address or on a direct-dial number.

 

Are IPOs Worth Investing In? (Or, Things You Should Know About IPOs)

IPOs – otherwise known in long form as initial public offerings – have really hit the headlines in recent times. The ill fated Facebook launch is well known by many, along with the far more successful Twitter IPO of recent times. We’ve all heard stories of people getting in on these IPOs and sinking some cash into them when they go live. But is it really advisable to do this and are there really big profits to be made?

Rule #1: IPOs are not necessarily ‘hot’

Lots of people assume big profits can always be made from IPOs. Recently in the UK the Royal Mail launched its IPO, which saw the value of the business rise markedly in the first few days (hours, even) after its launch. This made huge profits for those lucky enough to have gotten a piece of this early action.

But for every story of this type there is a Facebook – an IPO that sees the launch price sink to lows that were previously only the stuff of nightmares. The rule here is to remember that initial public offerings tend to have quite a buzz around them, especially when the company or business in question is well known. Don’t assume the buzz is worthwhile and guarantees you a profit.

Rule #2: an IPO doesn’t always guarantee a strong financial footing

You’d be forgiven for thinking a company launching an IPO is in a great position financially. However this isn’t always the case. In fact there have been many examples (some quite well known, such as Pets.com for example) of businesses that failed after their IPO. Unfortunately some businesses seem to think an IPO will get them out of trouble, without thinking that the price can easily go down as well as up.

Rule #3: always do your research

If you are intent on getting involved in this type of investment, always always ALWAYS do your homework first. Don’t believe the headlines and the hype. You might do this and get lucky, getting in early and getting out with a good price for your investment, but you are much more likely not to be that lucky.

You can minimize the risk of losing money on this type of investment by looking into the information given in the prospectus, as well as doing your own research on the company. The more experience you have in this area the better, but we all have to start somewhere.

Of course, initial public offerings are always dicey affairs. You could be about to make the best investment of your life, or it might be the worst thing you ever do financially. You just never know. The main thing to remember is that you shouldn’t believe all the hype, because there tends to be a lot of it about. 2014 might be the year you make a fortune on a well chosen IPO. Similarly it could be the year you steer clear because you know they aren’t for you.

What Has Happened With Twitter’s Shares Since the Launch Date?

When Facebook launched their IPO it went through more than its share of teething troubles. Twitter took heed of those mistakes and was decidedly more cautious when it came to launching its own IPO.

So let’s take a look at what has happened since the all important first day of trading.

A high of $50.09

This was the top figure the share price managed to hit on the first day the shares were traded. The IPO price had been set at $26 per share, so this high point represented a figure that was almost double what it had been at its first valuation.

A healthy opening price

The opening price might have been lower than the high mentioned above, but it wasn’t far below it – not when you keep that $26 per share figure in mind. In actual fact it was $45.10, so things were certainly looking healthy.

And what about the closing price on day one?

This was slightly lower than the opening figure, at $44.90. However the picture was still a lot rosier than it had been for Facebook. Whether this remains the case for the long term has yet to be seen.

Where do the shares stand at the moment?

At the time of writing they were valued at $41.00 each. The share price has had its ups and downs over the short term of course, and this will only continue into the future. On the day of writing this, the share price had dropped slightly from the start of trading, before evening off at around $41.00 each.

A profit is yet to be made

This is perhaps the most important thing to remember about Twitter and its perceived value. We have seen internet companies dropping in value before, and while it is too early to say what will happen here, some have indicated that Twitter has many challenges to surpass before it can truly celebrate.

For example one report stated that every Twitter user was able to generate $1.16 for the company. This is a long way away from the $130 value put on each user by the share price as it stood earlier this month. Indeed it is not far from that same price now.

Twitter is looking at ways of monetising its website in order to bring in more revenue and hopefully transform several years of losses into a profit of sorts. It has yet to make a profit at all, although those in charge are investing in the future of the business instead of letting it sit idle and enjoying small profits.

We shall be watching closely to see what happens in the near future. One thing is certain though – the share price (whatever it may be) is only part of the equation. The future of Twitter and its shares largely depends on how well the company adapts to the challenge of becoming a real money maker. It may be some time before we have the answer to that particular question.

 

Opening Prices for Twitter Shares Announced

After months of speculation the prices have been set for the opening selection of Twitter shares. These have been announced as falling between $17 and $20 each.

Many experts have seen this as a smart and cautious move by the social networking site. They have seen the disaster that Facebook went through at its initial public offering, and they obviously want to avoid the same thing happening to them. We covered the cautionary tale aspect of this story a couple weeks back. Last week we also wrote about the potential short and long term aspects the shares in Twitter could present us with. Click back through those links now to read more about the frenzy that is building up over the shares, and where it could take us in the future.

What’s the initial value?

With the shares priced as indicated above, Twitter has a market value of around $11.1 billion dollars. However people who gamble on the price the shares could eventually reach have put a much higher price on it as a result. This is speculation of course but figures have gone as high as $30 billion dollars – and this is from the start.

This means shareholders could see their shares rise sharply in value on the first day of trading. If this were to happen it would stand in sharp contrast to what happened with the Facebook share debacle. This stands as an example of what NOT to do at a social media site IPO. Hopefully Twitter will perform far better and prove to be an example of perfect practice. We can but wait and see.

What will happen when the IPO finally takes place?

Rather than seeing the value of the shares drop like a stone, as they did with Facebook’s IPO, Twitter shares should start rising almost immediately. It will be interesting to see whether the projected value does turn out to be accurate.

However, the fact that those in charge of the IPO are playing things very cautiously bodes well for the eventual outcome. No one knows what the picture will look like several months down the line, but few expect the launch to be anything like the Facebook example.

Of course Facebook was not the only site that suffered. Groupon Inc also lost a significant amount of their estimated value due to overpriced shares, as did Zynga Inc. These cautionary tales have obviously been seen and noted by Twitter, and those in the driving seat do not want to go down the same path.

No one knows exactly what will happen until the IPO takes off, but all the signs are pointing towards a successful launch. Anyone with shares could expect to earn a significant amount from them, especially if the projected figures provided by the gamblers mentioned earlier are anywhere near accurate.

We’ll all be watching to see how high the share price could go – and how quickly it happens as well. Could this be the biggest social media success in history?

What Will the Short and Long Term Outlook Be for Twitter Shares?

If you know anything at all about Twitter you’ll undoubtedly have heard about its forthcoming stock exchange debut. In fact if you read our blog post last week, concerning our thoughts of a cautionary tale in the making, you’ll already be up to speed. Its IPO is coming soon, although a firm date has yet to be formally announced. This coming weekend sees a dry run for the IPO, in the hopes that the problems Facebook suffered during its IPO can be averted in this case.

So the question this week is what is in store for Twitter – soon to be known as TWTR on the stock exchange – in the short and the long term? Will it follow the path of Facebook or is there more good news than bad to look forward to?

Short term thoughts

When Facebook went public its initial share price nosedived pretty quickly. It also suffered from technical mishaps (Nasdaq subsequently got a $10 million slap on the wrist for these).

The recently announced dry run should put paid to the latter happening for Twitter, but it remains to be seen how well (or not) the initial share price does when the initial public offering finally goes live. Facebook’s share price dropped like a stone until it bottomed out at $18 per share in August of the year it went live. Will the same happen to Twitter or will it do a lot better in those early days? We shall be watching to find out the answer.

Long term thoughts

Even though Facebook’s launch was little short of a disaster, there was a fairytale ending more than a year down the line. As things stand at the moment, the share price is much better at a little upwards of $55. Whatever Twitter’s IPO turns out to be, there is the potential for this to grow in the future just as Facebook has.

Of course the big question is really whether or not Twitter can grow in terms of profits. It has yet to monetize its site to see real profits emerge, but Facebook’s path to profit has been equally as murky. This aspect of the giants of social networking doesn’t seem as important as the outlook for the future. People are clearly thinking long term with regard to making a profit from these sites. Those who held onto the early Facebook shares will now be much better off, as the IPO launched at $38 per share.

All in all perhaps it comes down to who is brave enough to take a chance on Twitter. Learning from the mistakes of its predecessor will be important to be sure, but this is only half the story. Whether you will be investing in the social media giant or not, you will undoubtedly be watching to see how things progress when the IPO finally becomes reality. And judging by all the information coming through, this shouldn’t be too long at all.

Will the Twitter IPO Turn Out to Be a Cautionary Tale?

The clock is ticking and the time is approaching when Twitter’s initial public offering finally goes live. Plenty of people will be eager to see what happens to the share price when Twitter goes public and is properly valued for the first time. And yet others will remember the Facebook debacle where the share price plunged almost immediately. Will the Twitter IPO go the same way?

Putting a value on a social media site

Twitter and Facebook are two very different sites, although they do share one main feature – both are social media sites. Twitter uses brevity to get its point across, the famous 140 character tweets being a staple of its appearance from the beginning. Facebook is a little more involved, with plenty of features in place and new ones appearing almost every day. Of course, many of those features have met with controversy – something Twitter has largely avoided for the time being at least.

But in November the two networks will share something else – the ability to trade shares. This is arguably the point at which Facebook started to hit some serious problems, so could the same be the case for Twitter? It would seem unlikely that the whole process would be smooth, although the powers that be at Twitter should have learned from the dramas that surrounded the Facebook IPO. It doesn’t mean they will be prevented from making many of the same mistakes, but you never know what might happen.

No profits yet

The main thing to remember if you are keen on getting involved and buying shares in Twitter is that this is a company without a profit. Much like Facebook, it is seeking to monetize its users and the many tweets that are sent and received every day. It has already managed to double its revenue on a yearly basis, so this is a good figure to encourage us to look ahead. What might happen in a year or two – or five – from now? Will those revenues still be doubling?

Essentially the idea of investing in Twitter is something of a gamble. Any purchase of shares is a gamble of sorts, but some are clearly more of a gamble than others. A company which has yet to turn a profit would seem to be in the riskier category, but it may also pay off with richer rewards in the long term.

It remains to be seen whether Twitter can avoid the fiasco that saw the value of Facebook’s shares nosedive early on. While many people will be watching to see how their shares perform, others will inevitably be waiting for disaster to strike. When it comes to IPOs for social media networks, this seems to be the way forward. Facebook was definitely a cautionary tale, so it will be interesting to see whether Twitter will learn from the mistakes and dramas that took place then. What do you think – will this be memorable for the right or wrong reasons?

Penny Stocks Could Cost You a Pretty Penny

Okay so the title is designed to catch your eye. But if you are thinking about investing in penny stocks it is worth realizing you could lose a lot of money in doing so.

This is not meant as a scare story, merely as a way of reminding you that investing in penny shares doesn’t make them any less volatile or safe than regular shares. Indeed, they are generally even more volatile, which is the reason why they are available so cheaply anyway.

Think about the value of a company before you invest

Let’s say Company A has shares valued at one cent each. Company B has shares valued at $6.78 each. Clearly there is a lot more value in the shares of Company B than those of Company A. This is because penny shares are made available by those companies who show promise for the future. They are created largely to generate funds to put back into the company so it can expand and develop.

Of course we all know lots of companies and businesses fail in their early days. So your task is to invest in penny shares released by companies that have the biggest potential for a great future. Lots of people wish they’d invested in IBM or Microsoft when their shares first came out. They’d be worth a lot of money by now. And when you think about the idea behind penny shares it is easy to see how such an investment can seem extremely tempting.

The reality behind penny stocks and shares

Let’s take a look at the reality of the situation now. The truth is penny shares are affordable for many people looking at getting into the stock market. But they are the riskiest shares of all. You may be able to afford more shares from Company A than you ever could from Company B, but that doesn’t mean it is a wise investment.

The bottom line here is to consider how much you can afford to invest – and also to lose. There is a bigger chance of penny shares nosediving in value and becoming worthless than there is of shares in any other company doing the same thing. There are exceptions of course, which is why you should never invest in any types of stocks or shares unless you know what you are doing and what to expect.

Many people say you should only invest money you wouldn’t miss when it comes to penny shares. There is a lot of truth in this. You should never really invest in it to gain a particular amount of money in return. It is far more speculative than other shares, which is why they are not for everybody.

This doesn’t mean you should avoid them at all costs of course. It just means you should be aware of the pros and cons and of what you are investing in. The more you understand about penny shares, the better your chances are of getting it right.

How to Use the ADX Stock Indicator

The ADX indicator can be a useful tool when it comes to gauging whether a particular trend is worth following in terms of investments. The indicator was created back in 1978, and the letters stand for the Average Directional Movement Index.

Most people are familiar with trends and how they can influence our need to buy something. If a particular fashion look is trendy, more people are liable to buy it. But every trend is only likely to last for a particular time. This means those fashionable slacks you have may not be so trendy next year, so you’d likely ditch them before then.

Spotting trends

The same thing applies in terms of the ADX stock indicator. It allows you to see whether a trend is weak or strong, and you can thus gauge whether to buy or sell your investments – in the forex market for example – as a result.

Generally speaking if you see an ADX value that drops below about 20, you can consider that to be a weak trend. The lower it goes the weaker it will be. Conversely if it should go above 40 it will be an indicator of a strong trend.

Which indicator is the most important one to be aware of?

In truth, both ends of the scale are worth looking at. You don’t want to invest in things that have weak trends because they aren’t likely to go anywhere or get you any particularly good results. Of course you can keep an eye on them in case things change, but generally speaking you should ignore them for now.

The interesting ADX indicators are those that start climbing. Some say anything above 25 is worth looking at, so you can see that an indicator measuring 40 is well worth a closer look.

Should you abandon all other methods of choosing stocks?

No – using the ADX stock indicator should form just one part of your overall strategy to find stocks that are worth investing in. If you use the ADX indicator for just one thing, it should be to find the magic number 25 and to see whether the trend is going up or down from there.

This will help you spot the strong trends and avoid the weak ones. A value of 25 that starts going up will be well worth taking a closer look at, for example. If you use this indicator along with a number of other tools, you can narrow down your investment options. Hopefully you will arrive at a far better result than you would have had before.

The ADX stock indicator takes a little getting used to if you have never used it before. As with any other stock picking method, it makes sense to have a few dry runs and to ‘invest’ in chosen stocks in a virtual sense first to gauge your success rate. You can then work out whether you want to go ahead and use it more often.

Using Foreign Stock Brokers

If you want to start investing in the stock market, you have two options open to you. You’ve either got to go it alone and make your own investments, or find a broker to do it for you.

This sounds easy on the surface, but if you want to invest in foreign stocks you may want to think about using foreign stock brokers instead of those in your own country. Of course some stock brokers do deal in stocks outside their own country – a lot will depend on the size of the company the broker works for and whether they deal in such markets. So this is worth a look before you do anything else if you are already using a broker.

But if you’re starting from scratch, here are some tips for using stock brokers based abroad that are well worth bearing in mind.

Look around and do your research first

It’s wise to suggest you don’t just jump in and select the first stock broker you come across. There are plenty of them out there, and if you’re selecting one in a foreign country it can be even more difficult to know whether you’re picking the right one or not.

Fortunately the internet has made the world even smaller than it was when we first started using commercial airplanes. Use it to your advantage and research each potential broker you are considering using. Use more than one source to find out about each too.

How easy is it to contact them?

If you chose a broker in the US you’d be able to pick up the phone and call them without worrying about hefty phone charges. This doesn’t apply for foreign based brokers.

In addition, you need to consider whether there might be a language barrier. This won’t apply in all countries, but if you’re in the US and you’re thinking of using a stock broker based in China you might have a problem.

Consider the conversion rates for charges

Remember too that conversion rates will apply if you’re converting your US dollars into a foreign currency. Make sure you work out some sums and find out what charges will be levied if you opt to go with a particular broker. This alone can make a big difference to what you make on a successful deal.

As you can see there are several points worth thinking about before you dive in and find a foreign stock broker. Alongside all the regular points to consider, there are several more that become more important when you want to hire a stock broker in another country. If you think about the above points and make sure you know the process to expect before doing anything, you’ll stand a much better chance of making this task easier and more successful.

There is a lot that could go wrong when you go down this route – but equally there is a lot that could go right as well. Make sure you pick the best outcome by doing your homework first.

Why Do Stock Share Prices Change?

Even if you don’t yet know too much about the stock market, you’ll probably be aware that prices change on a regular basis. But why is this? Why can the price of one share be at one level on one day, and an entirely different level the next? Let’s find out more, so you know what to expect if and when you start buying or selling shares.

Supply and demand

This natural law means the price of something – anything, not just shares – is likely to go up the fewer items are available (supply). However it also relies on how many people want that item (demand).

Let’s say there are 100 shares at $10 each. If less than 100 people want them, the price might drop or stay the same. If more than 100 people want them, the price will rise. If there are 1000 shares at $50 each and less than 1000 people want them, the price would stay static or drop. More than 1000 buyers would lead to a price rise. So you see the amount of shares available and their initial price do not matter. It is the law of supply and demand that matters.

Profit warnings

Sometimes businesses will issue profit warnings if they are having a tough period of trading. These will usually lead to a drop in the share price, as the business could be in trouble. The shares will not therefore be as valuable as they would be if a business issues a good report on its earnings, pointing towards a better and more profitable future in turn.

The influence of outer forces

This might sound like something in a sci-fi drama, but in reality it’s nothing of the sort. Every business is affected by all manner of external forces. This could be anything from a rise in interest rates to a recession. If a business starts experiencing problems owing to an external force such as this, you can be sure the share prices will be affected accordingly.

Of course if a business bucks the trend and still brings in good profits despite such issues from outside, its share prices will typically rise and improve. This will be in contrast to other businesses that may be struggling.

The actions of a large shareholder

While some shareholders have relatively small amounts of shares, others have lots. These are the big shareholders that represent companies of various kinds, such as insurance brokers. If one of these shareholders should sell their shares – for whatever reason – it can spark panic among the rest. Why are they selling such a large amount of shares? Even if the company isn’t in trouble, this type of action can send the prices into freefall.

So you can see there are lots of reasons why the prices can change. The more you understand this before buying or selling shares, the easier it will be to understand the movements of the stock market. It also adds to your knowledge, and that can only be a good thing.

How to Buy Private Stock

Most people are aware that it’s possible to buy stock in various companies with the hope of it going up in value. However it’s not correct to say that all stock is the same. There are two types of stocks – public and private stocks. Public stocks are the ones most people are familiar with. They can easily be bought and sold so you have complete freedom in deciding which ones to get and which ones to avoid.

However this doesn’t apply to private stocks. So let’s find out a bit more about them and discover whether you can actually buy them.

How to find private stocks

This can be easier said than done. The fact they are private means they are much more difficult to find than public stocks. Private companies are not required to release financial information and thus you may not have any information at all to go on. In the past the easiest way to have a shot at buying these types of shares was to work for the company and hope you were issued some at some point.

Furthermore since the shares are not made public for anyone to buy, you may not have any opportunities to buy them. It’s very much a case of knowing someone who has these shares so you can ask if you are able to buy some. There is a relatively new way of doing this that makes good use of the internet. A new website called Sharespost has been launched recently (https://welcome.sharespost.com/) that aims to make it easier for people who want to buy private stock to get in touch with people who have private stock to sell. The major downside is the $2,500 fee required to buy or sell stock on this website. Thus the site is not for beginners.

An alternative is to consider Second Market (https://www.secondmarket.com/private-company) which also has a section that can bring together private stock buyers and sellers.

A notable caveat

As with any shares, it is wise to find out as much as you can before buying any of them. The very nature of private stock is that it is difficult to glean much information about in advance of purchase. This is why you are better off avoiding private shares altogether until you have some experience buying other shares. The more you get to know about the market, the easier it will be to stand a chance of putting yourself in a position to buy private shares.

It can be a good idea to ask people you know who work for these companies to see if this will create any opportunities for you. You never know, simply having a conversation with someone you know and trust could result in an opportunity to buy. However always do your homework and don’t buy simply because you know the person selling to you. Ask yourself why they want to sell and what this may mean for you. As always caution is advised.

How Are Stocks Classified?

If you’re just starting to explore the world of stocks and shares, you’re probably wondering how to figure out which stocks to buy and which ones to steer clear of. It’s best to start by looking at the different types of stock classifications that exist, because this helps to divide the stocks into specific categories.

To this end, we’ve listed some of the most popular classifications here. You’ll find you start coming across these terms as you start considering which stocks to invest in.

Small, mid and large cap

‘Cap’ stands for capitalization. To work out the capitalization of a particular stock, you take the volume of outstanding shares and multiply that figure by their actual price. Small cap usually means the capitalization is under a billion dollars; mid means one to five billion dollars and large is anything over that.

Blue chip stocks

This is one phrase most people will be aware of, regardless of whether they have been involved in buying stocks or not. A blue chip stock is one released by a blue chip company, i.e. a company that has been around for a long time and which consistently delivers good results. They may not deliver huge profits but they are seen as reliable and they have far less chance of delivering a loss.

Cyclical stocks

As the name would suggest, these stocks perform well at some times and not so well at others. Take energy stocks for instance. There will be times when there are big leaps forward in this industry, particularly with regard to green energy. At these times you can expect stocks to improve in value. However there will also be times when there is less demand for energy or poor news relating to the sector, and thus the value of stocks will go down.

Defensive stocks

Just as cyclical stocks focus on business sectors that can go up and down, defensive stocks focus on those that are more reliable. Any company that provides a staple item – such as food for example – will typically fall into the defensive stock category.

How can you get the right mix of stocks in your portfolio?

Defensive stocks will be more consistent in their returns than cyclical ones. They are reliable but having said that they won’t produce impressive returns. Cyclical stocks may produce better returns but only at certain times of the year.

Clearly a balanced portfolio is in order if you want to make the most of your returns. It will take time and effort to learn more about the different types of stocks you could invest your money in. However this time is worth spending because you stand a much better chance of receiving a good return.

It is also worth remembering there are many other different types of stocks – hundreds of different classifications – you could delve into. The ones listed here are some of the main ones, providing a good starting point to work from when you are just getting involved in the stock market.