Investing word of the day: Stock Rights Offer

source: http://thismatter.com/money/stocks/rights-offering.htm

We have seen some stock rights offering lately and probably you are scratching your head asking what is a stock right anyways?

I got this this definition and explanation from http://www.answers.com/topic/stock-right

Privilege giving current stockholders the first right to buy shares in a new offering, thus maintaining their proportionate ownership interest; also called Pre-emptive Right. Suppose the investor owns 3% of XYZ Company. If the company issues 5000 additional shares, the investor may receive a stock rights offering-a chance to buy 3%, or 150 shares, of the new issue. This right enables the investor to purchase new common stock at a subscription price for a short time, usually no more than several weeks. The subscription price (exercise price) is lower than the public offering price of the stock. A single right is the privilege applicable to one old share of capital stock to purchase a certain number of shares of new capital stock. When the rights are exercised, the issuing company makes a journal entry to record the proceeds received, and the common shares are issued.

In layman's term(as much as I can :) )

Normally a company has to options to raise capital: through a debt instrument by issuance of a bond or in simpler terms "uutang" or through issuance of additional shares which is either coming from sale of unissued share or sale of new shares requested from SEC(Securities and Exchange Commission).

Stock rights, as defined above, is privileged given to current holders of the stock to buy additional shares at a lower or discounted price to preserve the percentage ownership of the current holders. So for example right now SMDC has a stock rights offer  of which the ratio is 1:3 meaning one stock right for every 3 SMDC stock currently held. Such has some added rules for current stockholders to avail such offering. 

source: http://www.smdevelopment.com/smdc/index.php?p=684

Now what good can one get from stock rights?

The very first one is that one can avail of the allocated shares at a discount as set by the terms of the stock right offer. If you are a significant shareholder of the company you will be able to preserve your share percentage thus still having the control even after an increase in capital. 

A reminder though, when exercising or using your stock rights always read the terms and conditions. In order to trade newly acquired shares through stock right one must comply like the stock  must be fully paid and that it is traded after the listing date.

Investing word of the day: Stock Rights Offer

source: http://thismatter.com/money/stocks/rights-offering.htm

We have seen some stock rights offering lately and probably you are scratching your head asking what is a stock right anyways?

I got this this definition and explanation from http://www.answers.com/topic/stock-right

Privilege giving current stockholders the first right to buy shares in a new offering, thus maintaining their proportionate ownership interest; also called Pre-emptive Right. Suppose the investor owns 3% of XYZ Company. If the company issues 5000 additional shares, the investor may receive a stock rights offering-a chance to buy 3%, or 150 shares, of the new issue. This right enables the investor to purchase new common stock at a subscription price for a short time, usually no more than several weeks. The subscription price (exercise price) is lower than the public offering price of the stock. A single right is the privilege applicable to one old share of capital stock to purchase a certain number of shares of new capital stock. When the rights are exercised, the issuing company makes a journal entry to record the proceeds received, and the common shares are issued.

In layman's term(as much as I can :) )

Normally a company has to options to raise capital: through a debt instrument by issuance of a bond or in simpler terms "uutang" or through issuance of additional shares which is either coming from sale of unissued share or sale of new shares requested from SEC(Securities and Exchange Commission).

Stock rights, as defined above, is privileged given to current holders of the stock to buy additional shares at a lower or discounted price to preserve the percentage ownership of the current holders. So for example right now SMDC has a stock rights offer  of which the ratio is 1:3 meaning one stock right for every 3 SMDC stock currently held. Such has some added rules for current stockholders to avail such offering. 

source: http://www.smdevelopment.com/smdc/index.php?p=684

Now what good can one get from stock rights?

The very first one is that one can avail of the allocated shares at a discount as set by the terms of the stock right offer. If you are a significant shareholder of the company you will be able to preserve your share percentage thus still having the control even after an increase in capital. 

A reminder though, when exercising or using your stock rights always read the terms and conditions. In order to trade newly acquired shares through stock right one must comply like the stock  must be fully paid and that it is traded after the listing date.

Paying it forward: Giving back

Have you seen this movie where a young boy changes a whole town with his concept of helping 3 people and these three people have to help another 3 people in return?

What would you do if your stock investments has gain a lot? Would it be nice to share your blessings? One rule that me and my friends in a stock forum is to always divide your earnings into five. One of those is for God. Why would we advice to set aside some of your funds for God?

Well just like the gospel today and the sermon I heard we are reminded to be as shrewd as the prodigal steward. We must be responsible enough for our finances that whatever is entrusted to us we must be responsible for it. The steward wasted his masters money and so in order to prepare for it he called those who owed his master and help them in their accounts so that when he has no one to turn to they would help him in return. Again a stern warning that no one can serve two master. So our master is only the Lord and don't let money be your another master but let your money serve you by serving others.

When you are able to give back it creates this feeling inside of you that you are rich that you can shell out some money or in our case as stock investors some of our earnings from stock investments for donation to a cause.

But it is not only by way of giving money that you can serve others, why not give your time or better yet share your strengths and talents. A friend of mine is asking for your help in a project with Gawad Kalinga this coming Sept 25, 2010. Details below(taken from a forum post in www.kerygmafamily.com/forum):

Just wanna ask your help for our sister in KerygmaFamily.com

Guys do you have time for something great?

Our sister here in the forum would like to ask for your time and your strong bodies for a Gawad Kalinga Project... If you can and you have time to share please PM or email sis maria28 aka Krissy Domingo at krisdiane.domingo@gmail.com  the upcoming projects are below(from sis maria28):

GK Build @ GK Bulaklakan, QC on Sept25

meet-up at Xavier Hall, ADMU 7am ^^ be in your working/building clothes such as gloves, hats or caps, bring sunblock, water..




You can sign up also for the:

CG - Gawad Kalinga Team LOJ Club
[after Feasts]
flexi sked.. we'll meet at preferred place and time..

SO GUYS SIGN UP NA FOR THE GAWAD KALINGA TEAM LOJ

Paying it forward: Giving back

Have you seen this movie where a young boy changes a whole town with his concept of helping 3 people and these three people have to help another 3 people in return?

What would you do if your stock investments has gain a lot? Would it be nice to share your blessings? One rule that me and my friends in a stock forum is to always divide your earnings into five. One of those is for God. Why would we advice to set aside some of your funds for God?

Well just like the gospel today and the sermon I heard we are reminded to be as shrewd as the prodigal steward. We must be responsible enough for our finances that whatever is entrusted to us we must be responsible for it. The steward wasted his masters money and so in order to prepare for it he called those who owed his master and help them in their accounts so that when he has no one to turn to they would help him in return. Again a stern warning that no one can serve two master. So our master is only the Lord and don't let money be your another master but let your money serve you by serving others.

When you are able to give back it creates this feeling inside of you that you are rich that you can shell out some money or in our case as stock investors some of our earnings from stock investments for donation to a cause.

But it is not only by way of giving money that you can serve others, why not give your time or better yet share your strengths and talents. A friend of mine is asking for your help in a project with Gawad Kalinga this coming Sept 25, 2010. Details below(taken from a forum post in www.kerygmafamily.com/forum):

Just wanna ask your help for our sister in KerygmaFamily.com

Guys do you have time for something great?

Our sister here in the forum would like to ask for your time and your strong bodies for a Gawad Kalinga Project... If you can and you have time to share please PM or email sis maria28 aka Krissy Domingo at krisdiane.domingo@gmail.com  the upcoming projects are below(from sis maria28):

GK Build @ GK Bulaklakan, QC on Sept25

meet-up at Xavier Hall, ADMU 7am ^^ be in your working/building clothes such as gloves, hats or caps, bring sunblock, water..




You can sign up also for the:

CG - Gawad Kalinga Team LOJ Club
[after Feasts]
flexi sked.. we'll meet at preferred place and time..

SO GUYS SIGN UP NA FOR THE GAWAD KALINGA TEAM LOJ

Paying it forward: Giving back

Have you seen this movie where a young boy changes a whole town with his concept of helping 3 people and these three people have to help another 3 people in return?

My personal analysis: JFC - Jollibee Food Corp.

source: http://www.millionaireacts.com/ (the Jollibee logo is property of Jollibee Food Corp.)


Jollibee Food Corp.(JFC) has been one of the country's top corporation.

source: http://www.freewebs.com/bestme/passionbasket.htm

Their franchising business has lead Tony Tan Caktiong to achieve new heights in retail business one proof of that was when he was awarded the coveted Entrepreneur of the Year - International Award 2004.

JFC has been one of the companies that withstood the Asian Financial crisis and as the year near its end it again made history by having a record high closing market price of 92.50. 

Core business of the company is franchising the brands  Jollibee ,Chowking, Greenwich, Mang Pepe, Red Ribbon, Delifrance(recently sold), and some foreign brand in China like Yonghe King and Hong Zhuang Yuan. The business has expanded to China, Southeast Asia, United States, and The Middle East.

Based on their website www.jollibee.com.ph, a franchise ranges from 15,000,000.00 - 30,000,000.00 pesos depending on the store size. Included in the franchise contract are the construction of the store, kitchen equipment and facilities(restaurant point of sale systems,commissary equipments, and storage facilities), furniture and fixtures, air-con system, signage, and pre-operating expenses.  

Looking at their financials through reuters.com/finance Current Ratio and Quick Ratio is at 1.44 - 1.5 range making it a liquid company as compared to its peers in the industry which is at 1 - 1.12. Debt to Equity Ratio  (MRQ - Most recent quarter)is at a healthy 17 as compared to its peers in the industry which is at 91.

JFC's P/E ratio is at 33 which may indicate that the stock is overpriced as compared to the industry which is at 9.7. But since JFC has proven good returns and stability the high P/E ratio could be judge as just correct. 

Looking at price chart, JFC has reached a record high of 92.50. My  resistance outlook is seen at the 90 level which was recently breached thus a possibility of another breached of this level at the coming months is expected and support is pegged at 75. MACD is above zero and divergence seem to look at a price uptrend only that the recent correction after the PSE's bull run enjoyed nearly a month has pulled its price back to the 85 level.

Stochastic analysis signify that sellers dominated the trade making the stochastic trend downward. This means that most holders of JFC has taken profits when the stock reached its peek at 92.50 the volume is at normal and price was gradually rising not a sudden spike thus we cannot assume that the stock is overbought. 

Recent news on opening of a commissary in mainland China is one of the reasons why JFC's stock price is gradually picking up. News about the sale of one of its brand, Delifrance, was not seen as factor of concern. Letting go of Delifrance will enable JFC to focus on more profitable brands. News of JFC entering the coffee business was seen when a JV(joint venture) with a holder of the franchise Caffee Ti Amo was reported late May this year. To read more about this click entrepreneur.com.ph 

For newbie stock investors JFC would be a great stock in your portfolio for long term. The recent correction is expected to lurk around until next week and as we have always said buy  stocks of fundamentally sound companies when their prices are down. The expected TP(target price) is the range of 95 -100 at Nov -  Dec 2010 but it is wise to at least take profits by selling half of your stock holdings when it reaches the TP at the expected time(again this is just my personal opinion).

My personal analysis: JFC - Jollibee Food Corp.

source: http://www.millionaireacts.com/ (the Jollibee logo is property of Jollibee Food Corp.)


Jollibee Food Corp.(JFC) has been one of the country's top corporation.

source: http://www.freewebs.com/bestme/passionbasket.htm

Their franchising business has lead Tony Tan Caktiong to achieve new heights in retail business one proof of that was when he was awarded the coveted Entrepreneur of the Year - International Award 2004.

JFC has been one of the companies that withstood the Asian Financial crisis and as the year near its end it again made history by having a record high closing market price of 92.50. 

Core business of the company is franchising the brands  Jollibee ,Chowking, Greenwich, Mang Pepe, Red Ribbon, Delifrance(recently sold), and some foreign brand in China like Yonghe King and Hong Zhuang Yuan. The business has expanded to China, Southeast Asia, United States, and The Middle East.

Based on their website www.jollibee.com.ph, a franchise ranges from 15,000,000.00 - 30,000,000.00 pesos depending on the store size. Included in the franchise contract are the construction of the store, kitchen equipment and facilities(restaurant point of sale systems,commissary equipments, and storage facilities), furniture and fixtures, air-con system, signage, and pre-operating expenses.  

Looking at their financials through reuters.com/finance Current Ratio and Quick Ratio is at 1.44 - 1.5 range making it a liquid company as compared to its peers in the industry which is at 1 - 1.12. Debt to Equity Ratio  (MRQ - Most recent quarter)is at a healthy 17 as compared to its peers in the industry which is at 91.

JFC's P/E ratio is at 33 which may indicate that the stock is overpriced as compared to the industry which is at 9.7. But since JFC has proven good returns and stability the high P/E ratio could be judge as just correct. 

Looking at price chart, JFC has reached a record high of 92.50. My  resistance outlook is seen at the 90 level which was recently breached thus a possibility of another breached of this level at the coming months is expected and support is pegged at 75. MACD is above zero and divergence seem to look at a price uptrend only that the recent correction after the PSE's bull run enjoyed nearly a month has pulled its price back to the 85 level.

Stochastic analysis signify that sellers dominated the trade making the stochastic trend downward. This means that most holders of JFC has taken profits when the stock reached its peek at 92.50 the volume is at normal and price was gradually rising not a sudden spike thus we cannot assume that the stock is overbought. 

Recent news on opening of a commissary in mainland China is one of the reasons why JFC's stock price is gradually picking up. News about the sale of one of its brand, Delifrance, was not seen as factor of concern. Letting go of Delifrance will enable JFC to focus on more profitable brands. News of JFC entering the coffee business was seen when a JV(joint venture) with a holder of the franchise Caffee Ti Amo was reported late May this year. To read more about this click entrepreneur.com.ph 

For newbie stock investors JFC would be a great stock in your portfolio for long term. The recent correction is expected to lurk around until next week and as we have always said buy  stocks of fundamentally sound companies when their prices are down. The expected TP(target price) is the range of 95 -100 at Nov -  Dec 2010 but it is wise to at least take profits by selling half of your stock holdings when it reaches the TP at the expected time(again this is just my personal opinion).

My personal analysis: JFC - Jollibee Food Corp.

source: http://www.millionaireacts.com/ (the Jollibee logo is property of Jollibee Food Corp.)


Jollibee Food Corp.(JFC) has been one of the country's top corporation.

source: http://www.freewebs.com/bestme/passionbasket.htm

Their franchising business has lead Tony Tan Caktiong to achieve new heights in retail business one proof of that was when he was awarded the coveted Entrepreneur of the Year - International Award 2004.

JFC has been one of the companies that withstood the Asian Financial crisis and as the year near its end it again made history by having a record high closing market price of 92.50. 

Core business of the company is franchising the brands  Jollibee ,Chowking, Greenwich, Mang Pepe, Red Ribbon, Delifrance(recently sold), and some foreign brand in China like Yonghe King and Hong Zhuang Yuan. The business has expanded to China, Southeast Asia, United States, and The Middle East.

Based on their website www.jollibee.com.ph, a franchise ranges from 15,000,000.00 - 30,000,000.00 pesos depending on the store size. Included in the franchise contract are the construction of the store, kitchen equipment and facilities(restaurant point of sale systems,commissary equipments, and storage facilities), furniture and fixtures, air-con system, signage, and pre-operating expenses.  

Looking at their financials through reuters.com/finance Current Ratio and Quick Ratio is at 1.44 - 1.5 range making it a liquid company as compared to its peers in the industry which is at 1 - 1.12. Debt to Equity Ratio  (MRQ - Most recent quarter)is at a healthy 17 as compared to its peers in the industry which is at 91.

JFC's P/E ratio is at 33 which may indicate that the stock is overpriced as compared to the industry which is at 9.7. But since JFC has proven good returns and stability the high P/E ratio could be judge as just correct. 

Looking at price chart, JFC has reached a record high of 92.50. My  resistance outlook is seen at the 90 level which was recently breached thus a possibility of another breached of this level at the coming months is expected and support is pegged at 75. MACD is above zero and divergence seem to look at a price uptrend only that the recent correction after the PSE's bull run enjoyed nearly a month has pulled its price back to the 85 level.

Stochastic analysis signify that sellers dominated the trade making the stochastic trend downward. This means that most holders of JFC has taken profits when the stock reached its peek at 92.50 the volume is at normal and price was gradually rising not a sudden spike thus we cannot assume that the stock is overbought. 

Recent news on opening of a commissary in mainland China is one of the reasons why JFC's stock price is gradually picking up. News about the sale of one of its brand, Delifrance, was not seen as factor of concern. Letting go of Delifrance will enable JFC to focus on more profitable brands. News of JFC entering the coffee business was seen when a JV(joint venture) with a holder of the franchise Caffee Ti Amo was reported late May this year. To read more about this click entrepreneur.com.ph 

For newbie stock investors JFC would be a great stock in your portfolio for long term. The recent correction is expected to lurk around until next week and as we have always said buy  stocks of fundamentally sound companies when their prices are down. The expected TP(target price) is the range of 95 -100 at Nov -  Dec 2010 but it is wise to at least take profits by selling half of your stock holdings when it reaches the TP at the expected time(again this is just my personal opinion).

Reuters might help you in your PSE stock research and analysis

In my search for a better free charting tool or program I stumbled on Reuter's page on stocks.


Click this link of reuters.com/finance/stocks to view this great website full of information.

Enter the stock symbol adding .ps at the end of the symbol for our example will use TEL(Philippine Long Distance Co.) thus the stock symbol you will place in the search box is TEL.ps

You can check out the different tabs to see what information is available.


Check out the "Financials" tab and check out the data for your fundamental analysis.

I was trying to check the "Chart" tab but it says "No data available". But the other tabs like "People" and "Key Developments" and "News" are helpful enough in discerning the direction of the stock.


So again try this site for your research and analysis of your buys or sells check www.reuters.com/finance/stocks

Reuters might help you in your PSE stock research and analysis

In my search for a better free charting tool or program I stumbled on Reuter's page on stocks.


Click this link of reuters.com/finance/stocks to view this great website full of information.

Enter the stock symbol adding .ps at the end of the symbol for our example will use TEL(Philippine Long Distance Co.) thus the stock symbol you will place in the search box is TEL.ps

You can check out the different tabs to see what information is available.


Check out the "Financials" tab and check out the data for your fundamental analysis.

I was trying to check the "Chart" tab but it says "No data available". But the other tabs like "People" and "Key Developments" and "News" are helpful enough in discerning the direction of the stock.


So again try this site for your research and analysis of your buys or sells check www.reuters.com/finance/stocks

Reuters might help you in your PSE stock research and analysis

In my search for a better free charting tool or program I stumbled on Reuter's page on stocks.


Click this link of reuters.com/finance/stocks to view this great website full of information.

Enter the stock symbol adding .ps at the end of the symbol for our example will use TEL(Philippine Long Distance Co.) thus the stock symbol you will place in the search box is TEL.ps

You can check out the different tabs to see what information is available.


Check out the "Financials" tab and check out the data for your fundamental analysis.

I was trying to check the "Chart" tab but it says "No data available". But the other tabs like "People" and "Key Developments" and "News" are helpful enough in discerning the direction of the stock.


So again try this site for your research and analysis of your buys or sells check www.reuters.com/finance/stocks

Prosperity Consciousness and Psychological Wallet

I read about Prosperity Consciousness in Bob Proctor's book You are Born Rich(To get a free copy of this book go to my webpage's Must read books tab or click here for the free ebook).

Bob Proctor explains that the things that were invented and enjoyed today has been there since before it was discovered. It was through one's consciousness about such idea or invention that lead to its discovery. So as with prosperity or abundance. 

source: http://www.re-motivate.com

Many people today are so blind that money or abundance or prosperity is within each and everyone's reached but seems so impossible. If we are only aware we could easily know what product would sell and give you profit or what stocks to invest to give a good return. But why is it up to now so many people are poor or so many businessmen failed in their business? Like the great scientist who discovered great knowledge that we use to day and sometimes we don't even appreciate, one has to be determined to see through the abundant source of information and abundant source of investment vehicles each and every man can have. When one has determination to learn and to harness such vast knowledge and resources then one has truly opened his eyes and finally sees that consciousness  unfolding little by little.

source: couponegg.com
 

What is a psychological wallet? In Bo Sanchez's book 8 Secrets of the Truly Rich psychological wallet was mentioned. Every person has this imaginary wallet. And each person knows how much money can only fit in that wallet thus in times of prosperity or when they made a jackpot in their business, or they got a bonus, or a promotion, the tendency is for them to spend the excess because they cannot fit it to their wallet. Thus when an employee got an increase  or bonus she or he plans where or what will he spend it for. Probably a treat at a pricey resto with friends, a Louis Vuitton bag, a vacation trip in Bangkok or in Boracay, or any thing as long as such excess money is spend and not tuck in their wallets.

Check Truly Rich Club for Bo Sanchez's secret to be truly rich.

source: livetradingnews.com

The thing is the secret to be truly rich is to accumulate and re-invest in a vehicle that will keep on earning and re-investing on its own. 

Thus for those spenders such wont be achieve because the money that they could have placed in a mutual fund or a stock investment is already gone. That is why it is recommended to change your psychological wallet. You can actually make that imaginary wallet  bigger so that you can happily put that extra earnings, save it, and invest it in an investment vehicle that will continually give you returns which you can now enjoy in Boracay or a Bangkok trip without you worrying where to get the money for it because it is now a fund that earns on its own.

The stock market is one good investment vehicle one can put one's free cash. The stock market may be running up and down but when you know when to buy and when to sell by opening that consciousness about the stock market you can prosper from it and reap its benefits in the long run or short run if the market is so good just like recently.

Again open your mind and be conscious of the abundant prosperity around us and always make your psychological wallet big enough to accept that incoming money from your stock investments.

Prosperity Consciousness and Psychological Wallet

I read about Prosperity Consciousness in Bob Proctor's book You are Born Rich(To get a free copy of this book go to my webpage's Must read books tab or click here for the free ebook).

Bob Proctor explains that the things that were invented and enjoyed today has been there since before it was discovered. It was through one's consciousness about such idea or invention that lead to its discovery. So as with prosperity or abundance. 

source: http://www.re-motivate.com

Many people today are so blind that money or abundance or prosperity is within each and everyone's reached but seems so impossible. If we are only aware we could easily know what product would sell and give you profit or what stocks to invest to give a good return. But why is it up to now so many people are poor or so many businessmen failed in their business? Like the great scientist who discovered great knowledge that we use to day and sometimes we don't even appreciate, one has to be determined to see through the abundant source of information and abundant source of investment vehicles each and every man can have. When one has determination to learn and to harness such vast knowledge and resources then one has truly opened his eyes and finally sees that consciousness  unfolding little by little.

source: couponegg.com
 

What is a psychological wallet? In Bo Sanchez's book 8 Secrets of the Truly Rich psychological wallet was mentioned. Every person has this imaginary wallet. And each person knows how much money can only fit in that wallet thus in times of prosperity or when they made a jackpot in their business, or they got a bonus, or a promotion, the tendency is for them to spend the excess because they cannot fit it to their wallet. Thus when an employee got an increase  or bonus she or he plans where or what will he spend it for. Probably a treat at a pricey resto with friends, a Louis Vuitton bag, a vacation trip in Bangkok or in Boracay, or any thing as long as such excess money is spend and not tuck in their wallets.

Check Truly Rich Club for Bo Sanchez's secret to be truly rich.

source: livetradingnews.com

The thing is the secret to be truly rich is to accumulate and re-invest in a vehicle that will keep on earning and re-investing on its own. 

Thus for those spenders such wont be achieve because the money that they could have placed in a mutual fund or a stock investment is already gone. That is why it is recommended to change your psychological wallet. You can actually make that imaginary wallet  bigger so that you can happily put that extra earnings, save it, and invest it in an investment vehicle that will continually give you returns which you can now enjoy in Boracay or a Bangkok trip without you worrying where to get the money for it because it is now a fund that earns on its own.

The stock market is one good investment vehicle one can put one's free cash. The stock market may be running up and down but when you know when to buy and when to sell by opening that consciousness about the stock market you can prosper from it and reap its benefits in the long run or short run if the market is so good just like recently.

Again open your mind and be conscious of the abundant prosperity around us and always make your psychological wallet big enough to accept that incoming money from your stock investments.

Prosperity Consciousness and Psychological Wallet

I read about Prosperity Consciousness in Bob Proctor's book You are born rich(To get a free copy of this book go to my webpage's Must read books tab or click here for the free ebook).

Bob Proctor explains that the things that were invented and enjoyed today has been there since before it was discovered. It was through one's consciousness about such idea or invention that lead to its discovery. So as with prosperity or abundance. 

source: http://www.re-motivate.com

Many people today are so blind that money or abundance or prosperity is within each and every one's reach. If we are only aware we could easily know what product would sell and give you profit or what stocks to invest to give a good return. But why is it up to now so many people are poor or so many businessmen failed in their business? Like the great scientist who discovered great knowledge that we use to day and sometimes we don't even appreciate, one has to be determined to see through the abundant source of information and abundant source of investment vehicles each and every man can have. When one has determination to learn and to harness such vast knowledge and resources then one has truly opened his eyes and finally sees that consciousness  unfolding little by little.

source: couponegg.com

What is a psychological wallet? In Bo Sanchez's book 8 Secrets of the Truly Rich psychological wallet was mentioned. Every person has this imaginary wallet. And each person knows how much money can only fit in that wallet thus in times of prosperity or when they made a jackpot in their business, or they got a bonus, or a promotion, the tendency is for them to spend the excess because they cannot fit it to their wallet. Thus when an employee got an increase  or bonus she or he plans where or what will he spend it for. Probably a treat at a pricey resto with friends, a Louis Vuitton bag, a vacation trip in Bangkok or in Boracay, or any thing as long as such excess money is spend and not tuck in their wallets.

source: livetradingnews.com

The thing is the secret to be truly rich is to accumulate and re-invest in a vehicle that will keep on earning and re-investing on its own. Thus for those spenders such wont be achieve because they money that they could have placed in a mutual fund or a stock investment is already gone. That is why it is recommended to change your psychological wallet. You can actually make that imaginary wallet  bigger so that you can happily put that extra earnings, save it, and invest it in an investment vehicle that will continually give you returns which you can now enjoy in Boracay or a Bangkok trip without you worrying where to get the money for it because it is now a fund that earns on its own.

The stock market is one good investment vehicle one can put one's free cash. The stock market may be running up and down but when you know when to buy and when to sell by opening that consciousness about the stock market you can prosper from it and reap its benefits in the long run or short run if the market is so good just like recently.

Again open your mind and be conscious of the abundant prosperity around us and always make your psychological wallet big enough to accept that incoming money from your stock investments.

Investing word of the day: Rally

I got this article from investmentterms.net

Rally, in stock market refers to a sudden, significant rise in price of a particular security or in the total market. This can especially happen after a continuous period of falling prices. Suppose the stock market has dropped in the morning, and the investors consequently make haste to purchase companies at lower prices, then the stock market is said to have rallied.

It is caused due to a huge sum of money that enters the market, bidding the prices up. The magnitude or length of a rally is dependent on the depth and volume of buyers, as well as the amount of selling they do. Thus if there is a greater number of buyers but less investors intending to sell, there is likelihood of a large rally. If the number of buyers matches the number of sellers, the rally most likely will be of a short tenure with the price movement being minimal.

Rally is a period of sustained increase in stocks, bonds and prices of indexes. This type of situation can take place either during a bull market or a bear market.

Bear market rally

source:http://www.zealllc.com/

A bear market rally refers to a rally that occurs after a great amount of downward trend. A bear market rally apparently is an indication of the markets making recovery. In other words it is turning around to a bull market. However this might signify a temporary trend. Because of the inherent unpredictability associated with this rally, it is also sometimes termed as a sucker rally. Many people are misguided into investing seeing the upward trend only to be deceived shortly, when markets do fall.

Bull market rally

source: http://blogs.reuters.com/globalinvesting/
This is a sustained, prolonged period of rising investment prices, faster than the historical average. One of the significant periods of bull market rally in the U.S. was in the early 1990s.

Investing word of the day: Rally

I got this article from investmentterms.net

Rally, in stock market refers to a sudden, significant rise in price of a particular security or in the total market. This can especially happen after a continuous period of falling prices. Suppose the stock market has dropped in the morning, and the investors consequently make haste to purchase companies at lower prices, then the stock market is said to have rallied.

It is caused due to a huge sum of money that enters the market, bidding the prices up. The magnitude or length of a rally is dependent on the depth and volume of buyers, as well as the amount of selling they do. Thus if there is a greater number of buyers but less investors intending to sell, there is likelihood of a large rally. If the number of buyers matches the number of sellers, the rally most likely will be of a short tenure with the price movement being minimal.

Rally is a period of sustained increase in stocks, bonds and prices of indexes. This type of situation can take place either during a bull market or a bear market.

Bear market rally

source:http://www.zealllc.com/

A bear market rally refers to a rally that occurs after a great amount of downward trend. A bear market rally apparently is an indication of the markets making recovery. In other words it is turning around to a bull market. However this might signify a temporary trend. Because of the inherent unpredictability associated with this rally, it is also sometimes termed as a sucker rally. Many people are misguided into investing seeing the upward trend only to be deceived shortly, when markets do fall.

Bull market rally

source: http://blogs.reuters.com/globalinvesting/
This is a sustained, prolonged period of rising investment prices, faster than the historical average. One of the significant periods of bull market rally in the U.S. was in the early 1990s.