magazine archive


magazine archive

Education

When to use price-to-book value

Thursday 17 Oct 2019

It has long been a vital tool in helping investors to value shares but price-to-book value (PBV) has fallen out of favour in recent years. For most of the past decade investors have been drawn to growth stocks because that’s where the best returns have been earned. The PBV value tool is not always...

What does a good and bad portfolio look like?

Thursday 03 Oct 2019

Portfolio construction has an important part to play in the investment world, but receives very little attention. It’s a shame because it can make a huge difference to long-term performance as well as reduce stress to help investors stay the course. This article looks at the benefits of building a...

What are dividends and when do they get paid?

Thursday 08 Aug 2019

Dividends are rewards paid by companies to their shareholders, typically in cash or sometimes as shares. These payments tend to be distributed twice a year for individual company shares. Many investment funds and exchange-traded funds (ETFs) also pay dividends to their investors and distributions...

What are adjusted earnings and why do companies use them?

Thursday 01 Aug 2019

When companies report their financial figures, often the final figure they want you to see is not the one that simply represents all of their incomings minus their outgoings. A growing number of firms think if you just take the statutory figures they provide, which usually stick rigidly to industry...

Understanding the different investment fund charges

Thursday 06 Jun 2019

Funds are obliged by the regulator to display their ongoing charges figure (OCF) to give investors a clear picture of the total costs they will pay for buying, selling and holding units in a fund. The lion’s share of the OCF is related to fees paid to the fund manager. This is to compensate the...

Can you give shares as a present to family or friends?

Thursday 11 Apr 2019

When you are thinking of potential gifts for someone, chocolates or a good book are more likely to be at the top of your list rather than shares, although the latter is possible. Everyone has an annual gift allowance of up to £3,000, which can be carried forward only to the next financial year,...

Why do share prices change overnight?

Thursday 21 Mar 2019

Relative newcomers to investing may be confused by the fact share prices can move between days, apparently without any trading taking place. Even more experienced investors often grumble darkly about these moves and in some cases the difficulty in buying as much as they want of a stock when it is...

What happens when you buy a share

Thursday 14 Mar 2019

While potential investors are often focused on what they should invest in, they can overlook a vital aspect: how do I actually buy a share? Anyone looking to make their own investment should open a dealing account, ISA or SIPP (self-invested personal pension) through an investment platform or a...

Forget non-farm payrolls, you need to focus on PMIs instead

Thursday 21 Feb 2019

Every so often a piece of economic data comes along which causes stock markets to have a major wobble. Among economic releases, by far the most widely anticipated are the US non-farm payrolls and the US manufacturing purchasing managers’ index or PMI. Non-farm payrolls are simply the number of...

Explaining stop losses and how they work

Thursday 24 Jan 2019

The risk of loss is a reality for all investors so using a stop loss to sell shares if they fall to a certain price sounds like an ideal solution, but the reality can be different. Stop losses send an alert to a stockbroker when a share hits a certain price and instructs them to sell the shares on...

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