Trading Library

Dividend yield play is a strategy suited for investors with a moderate risk profile. However, this requires monitoring your investment portfolio on a regular basis. The strategy aims to generate a regular stream of income by using the same capital investment of the company.

Share price is the price of one share of stock. Although it can appear like an arcane value, fluctuating with the market, share price is simply market capitalisation (company value) divided by number of shares issued by the company. A company with an IPO will usually have advisors to determine share price value for the company. Share price is determined before it is subjected to buyer and seller impact.

Every trade starts with a stock. But with a multitude of stocks in the market, which one do you choose and how do you decide? more importantly, what's the right signal to buy a stock?

Assumptions

Before your carve out your golden rules, you have to ask yourself a couple of questions first. Your criteria will depend on your needs and expectations.

• Are you a trader or investor?
• How long are you willing to trade?
• Do you tackle risks head on or avoid it?
• Are you after dividend payouts or stock growth?

An initial public offering, or IPO is the first sale of stock by a company that has gone public. It's an offer by a company of its shares to potential buyers prior to the stock actually being listed on the stock exchange. Companies go public and sell IPO usually to raise a large amount of money. Like all kinds of investments, the success of IPO trading depends on market conditions. Do your homework before investing.

Cross Trade is the practice where buy and sell orders for the same stock are offset without recording the trade on the exchange. When a trade is unrecorded through the exchange, it's very likely that a client didn't get the best price. This is illegal on most stock exchanges. Cross Trade occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager.