Stocks

Short Selling Explained: Risks and Rewards

What is short selling, and what's in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock's price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn't actually own the […]

Stocks

Short Selling Explained: Trading Strategies

How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won't always be able to short any stock you want, whenever you want. Working with an online brokerage service like Ally Invest ensures you have plenty […]

Stocks

Trading Stocks for Beginners

Just starting out with stock trading? Great! Before you begin actively trading and investing, educate yourself about how stocks work. Learning the fundamentals of the stock market can help you anticipate change and develop investment strategies to mitigate loss. As a popular security, stocks come with their own set of potential risks and rewards. We've […]

Stocks

Investing in Stocks: A Beginner’s Guide (Part 1)

Buying and selling stocks for investment is no longer the domain of the professional trader. Master the basics of trading first, then you'll be ready to research and manage your own investment portfolio. What are stocks? A stock is a type of security that reflects ownership in a publicly traded company. When companies need to […]

Stocks

Investing in Stocks: A Beginner’s Guide (Part 2)

Risks and Rewards All trading involves risk, commissions and other fees, and potential tax implications. Before you begin trading, educate yourself about how stocks are traded on the NYSE and NASDAQ markets and how earnings reports, market forces, and company changes can impact stock prices. This knowledge will help you become a more responsible self-directed […]

Stocks

Investing in Stocks: A Beginner’s Guide (Part 3)

Trading Strategies and Types of Stocks Stocks are issued in two main types: common stock and preferred stock. Some companies go one step further and issue classified shares separated into several classes. Each type of stock has unique benefits and drawbacks. Common stock vs. Preferred stock COMMON STOCK PREFERRED STOCK Lower priority for dividends Nearly […]