A sure-footed path for small investors
Article Abstract:
There are five measures that small investors can take to increase their chances of success in the stock market. First, they should choose only long-term investments because these are safe from most market risks. They must make sure that they have no immediate need for the money they will invest so that they will not be forced to cash in their investments when market prices are low. Second, small investors must gain a good understanding of the importance of compounding. For example, $1000 invested in common stocks with total annual returns of 12% will grow to $93,051 in 40 years. Third, investors should apply the principles of diversification and dollar averaging to avoid market risks. Fourth, they should defer taxes whenever possible to maximize compounding. Lastly, investors must make it a point to buy only the services that they really need.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1995
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Reflections on the DJIA
Article Abstract:
The Dow Jones Industrial Average (DJIA) is a stock index that tracks the price movements of 30 blue-chip stocks drawn from a variety of industries. The DJIA includes companies that are typically very large firms which usually have high dividend declarations. The DJIA, as such, is not representative of the companies listed on the New York Stock Exchange. Despite this, the DJIA remains the best known and most widely quoted stock index. Its popularity being derived, in part, from its historical importance and, principally, from its unique role as an influential stock market barometer.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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