Owning Stocks
Completion requirements
This section discusses where stocks are traded and the difference between primary and secondary stock markets. You will become familiar with IPOs (initial public offerings), which are essentially when a company issues stock for the first time. IPOs are crucial for understanding the difference between primary and secondary markets. What are the different classes of rights that come from each type of stock?
Equity Strategies
Key Takeaways
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Common long-term strategies try to maximize returns by
- minimizing transaction costs or
- minimizing the effects of market timing.
- Long-term stock strategies include buy and hold, dollar-cost averaging, direct investment, dividend reinvestment, and indexing.
- Common short-term strategies try to maximize return by taking advantage of market timing.