We already began looking at the different components of a stock quote: Ticker symbol… dividend yield… dividend per share… etc. I have a few more to cover with you today before talking about how you can use them as part of your investment strategy.
I’ve been reading stock quotes for decades now, but I still get surprised when a company’s stock moves differently from what the stock quote leads me to predict. That instability makes trading more fun.
If you’re interested in adding a global dimension to your portfolio but don’t know where to begin, ADRs may be worth considering. ADRs offer the opportunity to invest overseas with minimal confusion and hassle, and can help you benefit from the financial success of other regions of the world.
Why do ADRs matter? Let’s look at it from the point of view of the company, and that of the investor.
ADR stands for American Depositary Receipt (sometimes also spelled depository). An ADR is a security that allows foreign companies to trade on the US financial exchanges. If you’re not buying shares of a foreign stock directly, how do ADRs work?
The reality, though, is that even a depressed market sector doesn’t need to impact your trading by a significant degree, especially if you’re into penny stocks or day trading. You’re looking for individual opportunities.
A sector, in some ways, is just another way of saying “industries.” In the finance industry, however, investment sectors refer to the specific delineations between different types of stocks and securities. Healthcare, energy, pharmaceuticals, and tech are just a few examples of investment sectors.
You can calculate your initial investment using an initial investment formula, but if the result is more money than you’re comfortable with investing, it’s moot.
Here’s where things get a little messy… You can open lots of different types of trading accounts, each of which might require a different initial investment. Let’s have a look at your options today.
Some people make an initial investment in the six figures, while others start with several hundred. What I want to share with you today are the considerations you need to take into account before you make that initial investment.