Tag: Stock Market (Page 1 of 8)

How to Invest In The Stock Market For Beginners

There comes a point when you realize that in order to build wealth it will require you to build multiple streams of income.

The average millionaire has seven.

The stock market is one way you can invest your earned income in order to start earning passive income and multiply your money.

Here’s how to invest in the stock market step by step for beginners.

Franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, market news, and trending investing topics.

Lets get started!

I’ve been investing in the stock market since 2019.

When I learned how to open a brokerage account and buy company stock, I knew I had to show people how to do it too.

Everything I found online was outdated so I wanted to make it easy for people to start.

Benefits of investing in the stock market

One of the greatest benefits of investing in the stock market is that you get to hedge against inflation.

Inflation is at an all-time high right now and simply letting your money lose its value isn’t going to create wealth.

The stock market also provides an average return of 7%-8% annually which means those CDs and high yielding savings accounts are a thing of the past.

Even so, you can always create a portfolio bringing in 20%+ annual returns!

In June of 2021, AMC shareholders saw a whopping 3000% return on their investment at its high.

GameStop shareholders saw about half!

Although these trades are much different anomalies then traditional long-term investing, it paints a picture of the power of the market.

Let’s get you started!

#1. Set a Budget When Planning to Invest

How to invest in the stock market

Before you begin to invest you will need to set a budget on your first investment(s).

The great thing about the stock market is that you can invest with as little as $50 or so depending on the cost of a share.

A share is a fraction of a company you can own and earn money from as the company grows and profits over a period of time.

Example

If you set a budget of $200 and the share of a company you want to invest in costs $50 then you can purchase (4) four shares of said company.

If a month later the shares you purchased are worth $60 each then your shares would now be worth $240, resulting in a $40 gain.

This is how investing in the stock market works.

Note: I highly recommend having your emergency fund built prior to proceeding with investing in the stock market.

It is important to highlight that the money you invest in the stock market will need to be money you can tolerate losing.

The stock market is volatile meaning the value of your assets is constantly going up and down.

Something to keep in mind is that the value of your investments can go down just as fast if not faster than they went up.

Now, this is not addressed to scare you. The stock on average has an annual return of 6-8% per year.

Why should you invest in stocks?

Investing in stocks is a great way to diversify your portfolio.

You don’t want to keep all your eggs in one basket.

For this reason, the wealthy invest in companies they believe have long-term potential to thrive and to multiply their investment.

#2. Know What to Invest In

Now that you’ve set a budget you’ll need to know what you want to invest in.

Once you do, find the stock market symbol of the company on Google search engine.

If you wanted to invest in Coca-Cola for example, you’d search ‘stock market symbol for Coca-Cola’ on Google.

You’ll see that the NYSE (New York Stock Exchange) symbol for Coca-Cola is KO.

This is how you will identify and search for companies to invest in when you’re in the market to buy stocks.

Here are some different type of investments you can invest in within the NYSE.

Stocks

A stock is a share of a company just like Coca-Cola.

Buying a share from one specific company is a stock.

Stocks are good to purchase if you strongly believe in the continued success of your choice of company.

Invest in companies that have room to grow and are constantly innovating.

Stocks I personally favor are Tesla, Apple, and Amazon.

These tech companies are always innovating therefore I have strong conviction towards their continued growth and success.

Index Funds

An index fund is a fund that tracks and follows the index (growth) of a group of companies.

When you own a share of an index fund, you own a percentage of a pool of companies oppose to just one company.

What makes an index fund great is that if a company within an index fund isn’t performing very well there are other companies that may balance the overall performance of the fund resulting in a fair return.

A popular choice is the S&P500.

This index fund tracks the performance of the top 500 companies in the United States.

This type of investment tends to be a less risky and yield great profits over the long run.

It’s an investors favorite and I personally hold shares in the S&P500.

Bookmark: Retire a millionaire with the S&P500: is it possible?

REITS

A REIT (Real Estate Investment Trust Fund) is very similar to an index fund.

The only exception is that it invests exclusively in real estate companies oppose to other businesses.

If you want to invest in real estate without the hassle of learning the game, using cash up front, or getting into debt, REITs are a great way to diversify your portfolio into the real estate sector.

A great REIT I’m invested in is VNQ with Vanguard.

Which investment is right for you?

Each of these investments has their own benefits.

My suggestion is to research them individually as all of our needs are very unique.

As your skills develop as a retail investor, you’ll find yourself having a diversified portfolio consisting of all three.

Invest in the stock market and learn to identify which investment is best for you.

Price is what you pay. Value is what you get.

Warren buffett

#3. Choose a Brokerage Firm to Begin Investing in The Stock Market

This is the fun part.

Choose a reputable online brokerage firm.

A brokerage firm is a platform where you will be doing all of your investing through the NYSE.

Here you’ll be able to purchase stocks and sell them.

Each brokerage firm has their own customer advantages but are very similar to use.

Here is a list of brokerage firms you can open an account with and sign up for free.

Check out each brokerage firm’s website and see which feels more comfortable for you to navigate.

Do some research on each of them to see which has the strongest potential for your needs. I personally use Vanguard.

How to invest in stocks
How to invest in the stock market for beginners

Note: When you purchase investments, there are small commission fees your investments will pay out to the firm.

They are very small in most cases and don’t hinder your earnings like you’d think. Vanguard has the lowest fees.

Each brokerage firm will have different commission fees and the percentage will vary in each firm.

For example: Coke (KO) will have a slightly different commission fee in every firm despite having the same share cost.

#4. Open your account

For this step-by-step on how to invest in the stock market I’m going to use Vanguard.

Vanguard is one of the most reliable brokerage accounts you can use.

how to invest with Vanguard
Franknez.com
How to invest in stocks for beginners

Head over to Vanguard and select ‘Open an account’.

Finance blog - Vanguard
How to invest in stocks with Vanguard

Select ‘Start your new account’ to get started.

Vanguard Account

Choose the method you will be funding your new account. You can choose between:

  • Electronic bank transfer or another Vanguard account
  • Rollover from an employer plan (e.g., 401(k) plan)
  • Transfer investments from another financial firm

Most new retail investors will be choosing the first option, using an electronic bank transfer to fund your account.

Before you open your account to begin investing in the stock market you’ll need your bank account and routing number as well as other personal information.

Once you’re in it’s time to transfer funds into your account.

#5. Transfer Funds into Your Brokerage Account

Congratulations! Now that you’ve chosen a brokerage account to invest with, you’ll have the tools at your disposal to begin investing.

Navigate throughout your brokerage website. Get comfortable with where things are.

Things might seem very new at first, intimidating even.

Don’t worry, now that you’ve begun something new, you’ll begin to take the first steps toward self-education.

First, you’ll want to learn how to transfer funds into your brokerage account.

I will be demonstrating step by step how to do this using Vanguard.

Toggle the settings to connect your bank account with your brokerage account so you can start to invest in the stock market.

This direct line will allow you to transfer funds into your account so you may begin to purchase shares.

Once you have this set up you may transfer the money from your budget to invest in.

#6. Make Your Very First Investment in The Stock Market

Now that you’ve transferred your funds over to your brokerage account, navigate through the site to make your very first purchase.

Search the symbol of the stock, index, or REIT you will be investing in.

Note: Before purchasing, make sure you thoroughly navigate the website to get comfortable using it.

This will make the purchase experience a lot easier.

Once you pull up the investment, go through the details provided on the page.

You should be able to see its history, it’s projected return, its risk level, and so much more information about the investment.

Invest Vanguard

Purchase the investment!

Purchase the investment with the option set to ‘Market’.

This option will allow you to purchase the investment instantly at the price it’s worth.

We suggest doing a test purchase since this is your first time investing in the stock market.

This will help you get a feel for it. Purchase one share so you understand the process.

It will serve as good practice and experience.

Congrats on buying your first share!

Follow up on your investment the following day and see whether your investment had gains or losses.

You’ll see for the very first time how your investment grew in value or decreased in value.

You now have a taste of what it’s like to invest in the stock market.

Bookmark: My top picks of stocks to invest in right now

Final thoughts

franknez.com

I have personally invested in stocks since 2019 and have learned a lot about the stock market.

In fact, I’m still learning today.

I published an article on the best tips and advice for beginners investing in stocks to further help you on your journey.

Stock investing is all about strategy.

When you make money in the stock market you may let it sit and accumulate over time, or you may cash in your profits and allocate those gains towards other opportunities.

This is why I believe investing in stocks is extremely important to someone who wants to build wealth.

The stock market allows you to multiply your hard-earned money so you may further invest it in other assets.

If you received value from this post please be sure to share it with someone who’s working towards becoming financially independent and who is also building their financial future.

My mission is to help people all around the world attain financial stability in order to live their best lives possible.

Here’s how you make money trading the S&P 500.

Need a financial advisor? Click here.

You can follow me on: Twitter | Facebook | Instagram


Credit Suisse Was Bailed but Clients Keep Pulling Out Money

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

Credit Suisse is trying to lure investments from wealthy clients in Asia by offering higher deposit rates than its competitors, Reuters has reported citing people familiar with the development.

Sources said the offers are valid until the end of this quarter and only apply to new cash deposits, not to existing portfolios.

The Swiss National Bank and Finma, the top financial regulator in Switzerland, said Credit Suisse “meets the higher capital and liquidity requirements applicable to systemically important banks.”

The regulators didn’t provide details of what type of liquidity they would offer, but said they are in very close contact with the bank.

“If regulators do not handle the Credit Suisse situation well, this will send shock waves through the whole sector,” said Joost Beaumont, head of bank research at Dutch lender ABN Amro.

Credit Suisse has been the problem child of European banking for several years.

Repeated scandals and financial losses have hammered the 166-year-old bank, which combines a wealth-management business catering to the world’s elite rich with a Wall Street investment bank. 

The bank is classified as a “systemically important financial institution” under international banking rules created after the collapse of Lehman Brothers.

Such designations require the bank to hold higher amounts of capital and to maintain plans for an orderly unwinding of its operations in case it gets into trouble. 

Like Silicon Valley Bank, Credit Suisse has suffered large deposit outflows in recent quarters.

Some local units briefly breached regulatory liquidity coverage ratios last fall.

That means they weren’t holding enough easy-to-sell assets, such as bonds, to safely cover customer withdrawals.

Top 4 Wall Street Banks See Big Losses

Wall Street’s 4 top banks just had $55 billion wiped off their market value in a single day.

Four of America’s biggest banks lost a combined $55 billion of market value in a single day as financial stocks plunged.

US bank shares took a beating amid fears of contagion effects from the turmoil at Silicon Valley Bank and Silvergate.

 JPMorgan Chase, Bank of AmericaWells Fargo and Morgan Stanley – the four most valued US lenders – saw $55 billion wiped off their combined market capitalization last Thursday, Refinitiv data show.

JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.

Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.

Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.

Among other major US banks, Goldman Sachs and Citi also witnessed significant declines in their share prices.

Credit Suisse Warned Investors of Potential Losses in Q4 of 2022

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

The SEC released Credit Suisse’s 6-K filing where the bank warns investors of potential losses due to naked short covering, more on that below.

Credit Suisse (CS) took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets — something we saw at the start of 2023.

The bank proceeded to hire 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

In a statement, the bank says, “Conversely, to the extent that we have sold assets that we do not own, or have net short positions, in any of those markets, an upturn in those markets could expose us to potentially significant losses as we attempt to cover our net short positions by acquiring assets in a rising market.

“Market fluctuations, downturns and volatility can adversely affect the fair value of our positions and our results of operations.

Adverse market or economic conditions or trends have caused, and in the future may cause, a significant decline in our net revenues and profitability.”

The closing of naked shorts this year would send affected securities soaring as buying momentum compounds.

Credit Suisse recently postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.

The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions, per Reuters.

Market News Published Daily

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


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Regulators Strengthen Punishment for Naked Short Selling

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

(BK) The Securities and Futures Commission of the Financial Services Commission imposed a pecuniary penalty of 6.05 billion won (US$4.58 million) on two securities companies that committed naked short selling.

The Financial Investment Services and Capital Markets Act of South Korea was revised in April 2021 so that illegal short sellers will face pecuniary penalties instead of fines.

The two companies have become the first such case.

Today, naked short selling is illegal in South Korea, unlike covered short selling.

Investors in the United States have raised naked short selling concerns on social media, urging the Securities and Exchange Commission to model the practice of nations such as South Korea.

Previously, illegal short selling in the South Korean stock market was detected infrequently and violators could go almost unpunished.

This is because the maximum fine according to the act before the revision was 100 million won (US$75,694).

According to the amended act, the maximum pecuniary penalty is equal to the amount of illegal short selling.

In addition, violation may lead to at least one year in prison or a fine equivalent to 300 to 500 percent of the illegal profit or avoided loss.

This model is raising attention in the United States as the predatorial practice has dominated the industry for decades.

Naked Short Selling in America

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

Today, naked short selling in the American markets is given a blind eye.

Retail investors believe U.S. regulators to be complicit in the market injustices that occur on a daily basis.

(Singapore) Genius Group (NYSEAMERICAN:GNS) CEO Roger Hamilton has led CEOs to take legal action against naked short selling in the market.

He recently shared a petition on social media to end naked short selling in efforts to raise awareness of the illegal short selling strategy.

Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist, per Investopedia.

The predatorial practice allows short sellers to short a stock without there actually being any stock available to short.

In 2015, The SEC approved the use of naked short selling on IPOs although it was deemed an illegal practice in 2010.

Roger Hamilton says he noticed something was wrong in his company stock after shares would plummet despite his company having strong fundamentals and funding.

This is when he began to speak publicly about what was happening to his company.

Another public figure who has spoken out against naked short selling is Jon Stewart.

Regulators have always had the power to stop the manipulation happening in our stock market but have created rules that cater primarily to hedge funds.

“The Game is Rigged” Says Ex-Citadel Data Scientist

Patrick McConlogue, an ex-Citadel Data Scientist said during the ‘meme stock’ frenzy that the stock market is rigged, claiming he helped design it.

“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”

The dilemma here is that institutions are able to get away with the ‘capitalism’ card every time an issue is brought to their attention.

SEC Chairman Gensler has said that the SEC cannot completely interfere with the industry due to a company’s capitalistic rights in America.

Which makes sense through a capitalistic view, however, there should be tougher laws in certain sectors and industries, especially those that have the power to create massive economic downturns.

Regulators in other countries have strengthened the punishment for naked short selling for a reason — the manipulation creates systemic risk.

The question is, how many times will the U.S have to see the collapse of markets and our economy to understand this?

Other countries have recognized these fallacies in their market, maybe it’s time the U.S does the same.

Related: ‘We The Investors’ Challenges Wall Street on New SEC Proposals

Market News Published Daily

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


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Disney Lays Off 7,000 as Streaming Services Tank

Disney Lays Off 7,000 as streaming services tank
Disney Stock News Today: Disney Lays Off 7,000 as streaming services tank.

Disney is planning to lay off 7,000 workers to cut costs across the company. CEO Bob Iger announced the news in an earnings call on Wednesday, stating that the move is “necessary to address the challenges we’re facing today.”

Like many other companies across the country, Disney’s making the changes as part of its efforts to reduce costs in a “challenging economic environment.”

Iger says he’s “targeting $5.5 billion of cost savings across the company” and that the layoffs will “help achieve this.”

Iger didn’t say which departments the layoffs will affect.

Iger still has his sights set on streaming despite a slowdown in subscriber growth. 

Disney Plus added just 200,000 subscribers in the US and Canada for a total of 46.6 million, while its international offering (excluding HotStar) saw the addition of 1.2 million members.

Hulu and ESPN Plus had similarly slow growth, with each adding 800,000 and 600,000, respectively.

It seems streaming services aren’t what Wall Street believed it was going to be.

AMC Entertainment CEO Adam Aron recently praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

$1.5 Billion in Losses

Disney’s direct-to-consumer division, which includes its streaming services, saw a 13 percent increase in revenue to $5.3 billion.

But it still had an operating loss of around $1.1 billion, which the company attributed to higher costs at Disney Plus and Hulu.

The company’s streaming business lost around $1.5 billion last quarter.

“Our priority is the enduring growth and profitability of our streaming business,” Iger says.

“Our current forecasts indicate Disney Plus will hit profitability by the end of fiscal 2024 and achieving that remains our goal.”

Disney Stock Price Today.
Disney Stock Price Today.

Shares of the company remained unchanged, in fact, The Walt Disney Company (NYSE:DIS) shares rose 0.13% on Wednesday and another 5.42% after hours.

Related: Goldman Says Bigger Short Squeezes Coming Since Meme Stock Frenzy

The Rise of the Movie Theatre Industry is Here

AMC Entertainment News
AMC Entertainment vs online streaming platforms.

As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.

“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source: Variety.

In recent news, Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

Sorry, Charles Gasparino.

“The streaming business, which I believe is the future and has been growing, is not delivering basically the kind of profitability or bottom line results that the linear business delivered for us over a few decades,” Iger said.

In the interim, Disney hopes to cushion that short fall by continuing to rely on traditional forms of distribution, releasing movies on the big screen, where it recently scored blockbuster successes with “Avatar: The Way of Water” and “Black Panther: Wakanda Forever”.

Market News Published Daily

Market News Today - Disney Stock News | Disney lays off 7,000 employees.
Market News Today – Disney Stock News | Disney lays off 7,000 employees.

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


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