Online Stock Fraud

With erratic prices, corporate scandals and "market corrections," you may think you already have enough to worry about when it comes to trading stocks. But there is one more important worry to add to the pile -- investment fraud.

Long before the days of online trading, a few unscrupulous brokers defrauded investors or absconded with their money. Fraudulent firms known as boiler rooms have also employed brokers to make unsolicited phone calls to investors, selling bogus or overvalued stock. People must evaluate their broker's ethics and judgment, and part of the broker's job is to protect investors from fraudulent stocks.

With online trading, though, people must research stocks on their own, deciding what to buy and sell without the help of a broker or an investment planner. Fraudsters have taken advantage of this, leading to several notable methods of defrauding investors. These include:

• Pump-and-dump schemes - People spread the word about a "sure thing" stock via online message boards, online stock newsletters, email and other methods. The resulting interest in the stock drives up the price. The organizers of the scheme sell their stocks for a huge profit, and then stop promoting it. The price plummets, and investors lose money.
• Fraudulent IPOs - Some investors like IPOs because they provide a chance to "get in on the ground floor" and to make a substantial profit. Some scammers, though, spread the word about an upcoming IPO for companies that never intend to go public or that don't exist. Then, they abscond with investor' money.
• Fraudulent OTC stocks - Con artists promote stock in companies that do not exist or start a pump-and-dump scheme for an OTC stock. After investors buy stock in non-existent companies, scammers simply take the money and run.
• Fraudulent company information - Publicly traded companies have to release information about financial performance. Overstating or misrepresenting a company's goals and achievements can drive up the stock price.

  

Fortunately, you can protect yourself from most of this by doing your own research. In addition to researching your brokerage, you should research any company you plan to invest in, including reading annual reports and financial statements. You should also check the SEC's Electronic Data Gathering, Analysis & Retrieval (EDGAR) system, especially if you are going to participate in an IPO. EDGAR includes IPO information and periodic reports from companies in the United States and other countries. Filing information with EDGAR is required by law.

Also, it's always a good idea to remember that if a stock deal seems too good to be true, it probably is.

Check out the links on the next page for lots more information on electronic trading, stocks and the stock market.

""Making Trades"

Once you've opened and funded your account, you can buy and sell stocks. But before you do that, you want to get a real-time stock quote to confirm the current price of the stock. Your brokerage may provide real-time quotes as part of your service. Many free financial news sites offer delayed quotes, which are at least twenty minutes behind the market. If the market is moving quickly, a delayed quote can be substantially different from the real trading price.

Once you've gotten your quote and decided you want to make a trade, you can choose to place a market order or a limit order. A market order executes at the current market price of the stock. A limit order, however, executes at or better than a price you specify. If the price doesn't reach the limit you set, your trade will not go through.

Some brokerages offer additional options, often used to prevent high losses when a stock price is falling. These include:

• Stop order - A form of market order, this executes after the price falls through a point that you set. The order executes at market price, not at the stop point.
• Stop limit order - These are like stop orders, but they execute at a price you set rather than market price. In rapidly moving markets, the broker may not be able to execute your order at your set price, meaning that the stock you own may continue to fall in value.
• Trailing stop order - Like a stop order, a trailing stop executes when the price falls through a point you set. However, its selling price is moving instead of fixed. You set a parameter in points or as a percentage, and the sale executes when the price falls by that amount. If the price increases, though, the parameter moves upward with it. So, if a stock is trading at $20 per share, and you set a trailing stop order with a three-point parameter, your initial selling price would be $17 per share. But if the price then increases to $25 per share, your new selling price would be $22 per share.

You must also select whether your order stays active until the end of the day, until a specific date or until you cancel it. Some brokerages allow you to place "all or none" or "fill or kill" orders, which prevent a partial rather than complete exchange of the stocks you want to trade.

Contrary to many people's perceptions, making trades online is not instantaneous, even if you're placing a market order. It can take time to find a buyer or seller and to electronically process the trade. Also, even though you can access your account and place buy and sell orders twenty-four hours a day, your trades execute only when the markets are open. An exception is if your firm allows after-hours trading, which is riskier due to the reduced number of trades taking place.

Opening & Funding an Account

When you open an account with a United States online brokerage, you'll answer questions about your investment and financial history. These questions determine your suitability for the account you are requesting -- the brokerage cannot legally allow you access to investments that you cannot reasonably handle. You will also have to provide your address, telephone number, social security number and other personal information. This helps the brokerage track and report your investments according to tax regulations and the PATRIOT Act.

In addition to providing this information, you must make several choices when you create an account. With most brokerages, you can chose between individual and joint accounts, just like at a bank. You can also open custodial accounts for your children or retirement accounts, which are often tax-deferred. Unless you pay a penalty, you can usually retrieve earnings from a retirement account only when you retire.

Next, you must choose between a cash account and a margin account. You can think of a cash account as a straightforward checking account. If you want to buy something using your checking account, you have to have enough money in the account to pay for it. Using a cash account, you have to have enough money to pay for the stock you want.

A margin account, on the other hand, is more like a loan or a line of credit. In addition to the actual cash in the account, you can borrow money from the brokerage based on the equity of the stock you already own, using that stock as collateral. Then, you can buy additional stock. Your margin is the equity you build in your account.

According to the Federal Reserve Board, you must have at least 50 percent of the price of the stock you wish to purchase in your account. In other words, if you want to purchase $5,000 worth of stock, the value of the cash and stock in your account must be at least $2,500. You can borrow the other $2,500 from the brokerage.

Once you have made your purchase, you must keep enough equity in your account, also called your equity percentage, to cover at least 25 percent of the securities you have purchased. Here's how the brokerage determines this number:

• The market value of your stock minus the amount of the loan you took to buy the stock is yourequity amount.
• Your equity amount divided by your total account value is yourequity percentage.

If your equity percentage falls below the minimum, the broker has the right to issue an equity call. Typically, the brokerage will try to contact you, but the firm has the right to sell any and all of your assets to raise your equity percentage to the minimum. The brokerage is not obligated to contact you.

Margin accounts are definitely more complex than cash accounts, and buying on credit presents additional financial risks. If all of that sounds overwhelming, it's a good idea to stick with a cash account. If you'd like some more examples of how margin accounts work, check out the IORC's Investing Simulator Center.

Finally, you must decide how the brokerage will store your money between trades. Many brokerages offer interest-bearing accounts, so you continue to earn money even when you are not trading.

Once you have made all these choices, you must fund your account. You can make a deposit by check, make a wire transfer to the brokerage or transfer holdings from another brokerage.

When your account is open, you're ready to trade. We'll look at the trading process next.

BULL VS. BEAR

Market analysts use the words "bull" and "bear" (or "bullish" and "bearish") to describe whether the market is generally rising or falling. If you have trouble remembering which is which, just think of the way the two animals attack. Bulls toss their horns upward, and bears swipe downward with their claws.

Choosing a Broker

Before you can trade stocks online, you have to select an online broker. Your online broker will execute your trades and store your money and stock in an account. The online trading industry has seen lots of mergers and acquisitions, but there are still many firms to choose from. Different firms also offer different levels of help, account types and other services. Here are some things you should keep in mind as you look for a broker.

• How much money you plan to invest. Most firms require investors to have a certain amount of money to open an account. This is different from a minimum account balance -- although most brokerages have those, too.
• How frequently you plan to make trades. Are you going to buy one stock and hold on to it? If so, you'll need to make sure the brokerage doesn't charge a fee for account inactivity. On the other hand, if you're going to make lots of trades, you'll want a lower fee per trade. Regardless of how much you plan to use your account, you should evaluate how much using the site will cost you.
• Your level of trading experience and how much guidance you need. Some of the least expensive brokerages don't offer much in the way of research or broker-assisted trades. Others, while still moderately priced, offer market analysis, articles on successful trading and help from licensed brokers.
• Any other services you may want. A few trading sites let you buy and sell stocks but not much else. Others are more like major banks, offering debit cards, mortgage loans and opportunities for other investments like bonds and futures.

Some sites, such as Keynote and Smartmoney, rate online brokerages based on success rates, customer service response time, trading tools and other factors. They can help you make a decision as you shop around for the best trading site for your needs, but keep in mind that there are no official standards for ranking or evaluating brokerages.

As with any site that requires your personal and financial information, you should make sure your online broker has good security measures, including automatic logouts and transmission encryption. You should also make sure your brokerage is reputable. The Investing Online Resource Center has a good list of links you can use to make sure your firm is legitimate.

INVESTOR PROTECTION ORGANIZATIONS

Several national and governmental organizations educate investors and protect the integrity of the market. These are good sources for reliable information about making investments. They include:

• The Securities and Exchange Commission (SEC), part of the United States federal government
• The National Association of Securities Dealers (NASD), a private-sector regulator
• The North American Securities Administration Association (NASAA), an international investor protection organization, which also created the Investing Online Resource Center (IORC)

How Online Trading Works

Legend has it that Joseph Kennedy sold all the stock he owned the day before "Black Thursday," the start of the catastrophic 1929 stock market crash. Many investors suffered enormous losses in the crash, which became one of the hallmarks of the Great Depression.

What made Kennedy sell? According to the story, he got a stock tip from a shoeshine boy. In the 1920s, the stock market was the realm of the rich and powerful. Kennedy thought that if a shoeshine boy could own stock, something must have gone terribly wrong.

Now, plenty of "common" people own stock. Online trading has given anyone who has a computer, enough money to open an account and a reasonably good financial history the ability to invest in the market. You don't have to have a personal broker or a disposable fortune to do it, and most analysts agree that average people trading stock is no longer a sign of impending doom.

The market has become more accessible, but that doesn't mean you should take online trading lightly. In this article, we'll look at the different types of online trading accounts, as well as how to choose an online brokerage, make trades and protect yourself from fraud.

Review of Stocks & Markets

Review of Stocks & Markets

Before we look at the world of online trading, let's take a quick look at the basics of the stock market. If you've already read How Stocks and the Stock Market Work, you can go on to the next section.

A share of stock is basically a tiny piece of a corporation. Shareholders -- people who buy stock -- are investing in the future of a company for as long as they own their shares. The price of a share varies according to economic conditions, the performance of the company and investors' attitudes. The first time a company offers its stock for public sale is called an initial public offering (IPO), also known as "going public."

When a business makes a profit, it can share that money with its stockholders by issuing a dividend. A business can also save its profit or re-invest it by making improvements to the business or hiring new people. Stocks that issue frequent dividends are income stocks. Stocks in companies that re-invest their profits are growth stocks.

Brokers buy and sell stocks through an exchange, charging a commission to do so. A broker is simply a person who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or electronically.

An exchange is like a warehouse in which people buy and sell stocks. A person or computer must match each buy order to a sell order, and vice versa. Some exchanges work like auctions on an actual trading floor, and others match buyers to sellers electronically. Some examples of major stock exchanges are:

• The New York Stock Exchange, which trades stocks auction-style on a trading floor
• The NASDAQ, an electronic stock exchange
• The Tokyo Stock Exchange, a Japanese stock exchange

Worldwide Stock Exchanges has a list of major exchanges. Over-the-counter (OTC) stocks are not listed on a major exchange, and you can look up information on them at the OTC Bulletin Board or PinkSheets.

When you buy and sell stocks online, you're using an online broker that largely takes the place of a human broker. You still use real money, but instead of talking to someone about investments, you decide which stocks to buy and sell, and you request your trades yourself. Some online brokerages offer advice from live brokers and broker-assisted trades as part of their service.

If you need a broker to help you with your trades, you'll need to choose a firm that offers that service. We'll look at other qualities to look for in an online brokerage next

For the U.S. market. Feigned calm before the weekend

In the Western markets have been sluggish dynamics. U.S. futures are trading in a negative zero, waiting for news on Michigan's consumer sentiment index (score 72) and the index of leading indicators. Grew by 2.4% in predtorgah retailer Gap after the report. Yesterday the U.S. market went up from the level of 1400 and close to half a year tops, no worrying about it is not, as traders have left for vacation before the Fed conference in Kansas City in late August. The American market has already taken into account the Merkel yesterday's speech in Ottawa, where Chancellor solidarity with the ECB in his vows to save the euro. The euro rose on Thursday evening on the recognition of German policy, which removes some concerns about the position of the Bundesbank opposition Draghi with his idea of ​​supporting ESM buy bonds of troubled countries ECB. Europe on Friday as only moderately increased by Merkel's statement, with Spain leading the growth of the banking sector. Offer Bankia (pioneer Spanish crisis) continues to rise in anticipation of emergency cash replenishment of the eurozone. MICEX index has not kept growth in the beginning of the day (except for Gazprom), the euro / dollar is not growing, feeding the bullish sentiment, Brent oil prices corrected after expiration of September contracts (prices of Brent crude look relatively overbought) The outcome of the day depends on the start of the U.S.session, but on Monday expect a positive opening in the calculation of the rebound of the Chinese market after the weekend.

Internet Trading: independent trade on the stock exchange

Trading (trading) implies a trade speculation involving securities or commodities, the purchase and subsequent sale of which can turn a profit. Education concept was trading in the banking terminology.Internet trading is an independent securities trading on different exchanges with the use of the Internet.Trading on the stock exchanges are conducted with regard to the principle of anonymity and continuity auction filed counter orders, and settlements occur on the same day that the deal was made. Deposit of the full amount of cash or securities held in the depository of the Central Bank.Investment companies provide personal access to the securities markets and applications for exchange through appropriate trading terminals. Direct access to the stock markets in real time is possible due to the professional trade and analytical terminal.Differentiated functional terminal contains graphic flexible interface, built-in indicators for technical analysis, equipped supports collection of quotation and news feeds with information. Implemented for timely export information in real time to an external package of technical analysis and other functions. Trading terminal allows to provide technical support for trading on stock exchanges.Pre-wiring for the service operations online trading after making the necessary data in the registration form and after the mandatory implementation of the following conditions:
                                                                                         get the key with a digital signature;choose the tariff plan for services for Internet trading;sign the contract for connection to the internet trading;transfer of money or securities to trading account;launch of the terminal on your computer and launching transactions.Money to fund your account entered into the system by means of bank transfer to the details provided. May acquire the trading terminal is also provided on the website of the company, providing services for Internet trading.

Trading in shares and securities

If there is free money, more people begin to think about investment opportunities and increase the turnover of capital. The most common way - opening their own business - requires a large amount of seed capital and personal involvement.These circumstances limit the willingness and ability of many. Through the development of Internet and computer technology, today everyone has the opportunity to engage in investing in the financial stock market by trading in securities and shares over the Internet.
Why do stock trading? In contrast to the market FOREX, trading in securities by virtue of their characteristics is considered more predictable. Behind every financial instrument in the securities market is either a specific enterprise or enterprise group, which takes into account not only the macro, and micro-economic indicators. For example, Apple's stock at the beginning of 2011 were worth around $ 300, and by September 2011 topped $ 420. Many analysts expected growth of interest in connection with the release of a new product line, and speculators were able to earn good money by investing in securities of the company.
To large-scale development of the Internet on the financial cost of entry was a big stock market, and investors bought shares directly to the desired company. Now trade is not so much by the actions, as rate of prices of these same stocks. There are new exchange instruments called contracts for difference or CFD (born ContractForDifference). In essence, buying a CFD on certain securities, you get these same stocks, but without tangible media (paper), and have the opportunity to sell their at any time and earn on the difference in prices.
The emergence of CFD allowed at times to reduce cost of entry to the stock market, since in the same proportion decreased operating costs for their purchase. Also a big plus on CFD "material" stake is the opportunity to play on the slide, which is impossible under the traditional trade.
Thanks to the above described changes, active trading in securities and stocks, the so-called internet trading, can lead to small start-up capital of $ 1000 or less.For example, in the Civil FOREXCLUB for securities trading is sufficient to have a minimum deposit of $ 300. At the same time will be available for trading a variety of instruments: stocks, financial indices, metals, energy, etc. - As well as advanced trading platform, operational support and excellent trading conditions.
Now, in order to purchase securities sufficient to open an account in the Civil FOREXCLUB and install the trading platform. Of course, investments in securities and equity investments require certain skills and knowledge. To hone the skills of trade have the opportunity to work on a demo account. And to get the basics in the field of investments in shares and securities - the opportunity to undergo training in the Academy of International Trade Exchange (MABT) CC FOREXCLUB.
The modern man has a unique opportunity - to make money working for yourself, without having a large initial capital. Do not miss your chance!

Why professionals choose SHARES?

Anyone who is not the first year of trading on Forex, should be very familiar with the following situation: there comes a time when well-established vehicle begins to make a profit, and already it seems that the whole world in your pocket. But after some time, "what has been earned through hard work" takes a sudden there came from the same, only more quickly ....
   

We reconsider, hang on TC new elements - again went ... but the result is the same. And so it goes on forever.Maybe the reason is not so in you and your trading system, namely, that where and what trade? After all, forex, we are bound only to a few appropriate tools (pairs trading), but within a year they change their behavior and we simply do not have time to track it (your old vehicle probably forgotten works now).


And if you did not ask the question why the percentage of successful traders on the Stock Exchange is much higher than in the Forex?So, allow you to select stocks for your trading tool that works on your vehicle right now, and if you then give a miss - you can easily replace it with another, because the choice of a large (only a few thousand of Nice, and the selection process at the beginning takes about 1 hour a day - and it has 70% chance for successful transactions). And this does not necessarily have supernavorochennogo vehicle in which you try to see what is not.


Maybe it meant A.Elder when gvoril that "gambling JUST"?Advantages and disadvantages of trading in shares:Advantages:- A wide range of actions: a trader can always find stocks that meet its requirements;- Access to specialist book, tape and volume of transactions, where you can see pending orders of market participants and the volume of transactions;- Actions more predictable and spend economic news, particularly in the section of economic sectors;- Availability of market-neutral stocks that go regardless of the market;- Transparency of trades - you can see the order sending the buyout market themselves and in turn are sent to the other;- The price per share for a world without changes;- The broker is still much you earn - it is not interested in losing a client, on the contrary it beneficial to your success because of the commissions;- Less risk, which affects the technicality, predictability, and smoothness of the shares. After all, the currency pairs reflect country risks at least two countries, and often more than is the case with the European Union, such as CHFUSD - reflected the risks in Switzerland, the United States and the European Union;- And finally, the subjective advantage to claim the leading traders of the number of successful traders share is much higher than in the forex.Disadvantages: large selection of stock, making it difficult for the selection and retention. But this lack is precisely the main advantage, and solved all of this is actually quite simple ...

TRADE SHARES OVER THE INTERNET. Profitable investment or ...?

Many people know that if the money or what not to invest, they will lose their value, often very rapidly. Official data on inflation, saying that the rate of depreciation is measured only two dozen percent. But for those who accumulates a large amount, and duration of payments is measured in years, this theoretically means a loss of more than half the savings.In reality, the price of various goods increased much faster and higher than the official rate of inflation. Those who notice it, understand what picture they see, by investing the money at low rates. So many are looking for the best possible options for where to invest your savings.
Bank interest has long lost that appeal, which they had before. If ever one could expect more than 30% per annum on the most ordinary deposits, now the most advantageous offer about a dozen that do not overlap inflation. Therefore, on bank deposits forget investors, looking for new options for capital.One of them, undoubtedly, is the financial market. Currencies, stocks, metals, raw materials and other financial instruments - a good opportunity to preserve and increase capital.One of the options for investing small amounts can be online trading. Trading stocks online is available to anyone who has a computer, internet access and a small capital. However, some people have illusions about the mechanism of trade and the end results.The causes and nature of these errors varied. The first myth is that you can buy different stocks, to sit around doing nothing, and earn an income. The reason for this opinion is in some real experience in trading stocks when shareholders receive dividends or sell profitable shares received at one time.But stock trading over the Internet - is quite different than people want to see.Typically, the capital for these transactions is small, while they themselves are short term trades. Therefore, the long term bull market is almost no work. In addition, most beginners are often only known examples of successful management of stocks. And the times when people are buying the securities to a strong drop in the market and as a result of losing a lot of money, virtually unknown. Yes, and many try to believe the best, locking the common sense in the far corner. In financial markets, the illusion - it is a recipe for failure.The second misconception is that online stock trading - a simple lesson that is accessible to everyone. On the one hand, yes, it is available. On the other hand the question remains - what will be the result of this trade? To a beginner in this business could get a steady income, even the smallest, he will make the difficult path of becoming a specialist. Unable to trade at random, as the stakes in the casino. Random success will be temporary, and not always successful. For stability, a positive result, you must first learn the basics of the stock market, and the theory of its operation.                                                     
Next, you should be familiar with the options market analysis, to study the mechanisms of interaction between the economy and its various structures.Fundamental analysis is usually - the basis of trading in the stock market. But, nevertheless, technical analysis can significantly improve the results, especially if the person intends to make short-term deal.In order to know all these details, you need a month of hard work, and only then will we become a professional and expect to be stable income.

Trade aktsiyami.Kak buy shares.

The richest people in the world own shares of the largest companies in the world.Successful investor Warren Buffett earned $ 47 billion in trade in shares of leading kompaniy.Baffet advises to buy shares of successful global companies.The essence of his method for buying stocks is to invest your money for 3-5 years in the shares of the companies that produce the goods are always in demand among buyers. For example, McDonald's produces food that is in constant demand around the world, so Buffett has shares of McDonald's.You can also become a successful investor and earn a lot of money if you start trading stocks on birzhe.Vy think that becoming a successful investor is very difficult, if not impossible, but you oshibaetes.Segodnya work on the exchange and trade stocks can any chelovek.Dlya stock trading is not need much deneg.Seychas brokers provide free credit leverage up to 1:1000, which gives you the opportunity to trade stocks like your brokerage account money in 1000 bolshe.Chto gives you leverage? Due to leverage, you have the opportunity to earn money in 1000 than have in your brokerage schete.U you a unique opportunity to increase the money ten times in a short period of time.
When I buy stock?Shares must be purchased during strong padeniy.Aktsii usually drops sharply during the global financial crisis. In early 2009 the shares of major world companies have reached historical lows and began a rapid growth in the second half of the year. Many financial analysts now predict a second wave of the financial crisis, but even if it does not come all the same today, shares of major U.S. companies are ochenin cheap. U.S. insurance company AIG with a century of history and subsidiaries around the world in June 2009 was worth only 50 cents.But in July 2009 the shares AIG soared to $ 50 per share. Just imagine how much money earned investors who bought shares in AIG in June, and sold only a month in July. If you want a legitimate way to make a fortune in a short period of time, the stock trading is the way to go.        


Start trading shares. Now is the time to start trading. U.S. stocks are very cheap.Best of luck! Do not forget about the risk. Do not be greedy, take your money and luck often certainly will smile to you.
List of brokers, trading in shares of U.S. companies.

Principles of online stock trading, commodities

Trading stocks and commodities through the Internet driven world economy.Billions of dollars every day fly around the globe through the web of internet nodal points of the world's stock exchanges, banks and brokerage firms. Millions of businesses buy, sell, earn and lose ... Equities, options, futures, commodities, currencies in the forex market, CFD, forwards, swap, warrants (bonds) ... Enough is enough! You are indeed right on your pages? Is this your world? At first it may seem difficult! Traders are still able to simplify the problems of this for myself so much that can actively and profitably trade stocks, commodities and currencies via Internet using a feasible knowledge and corresponding supply of information.Of course, the right and you!
Trade stocks, commodities and currencies through the Internet - a business. Very well thought out and researched, operative, with a well-established rules and accessible to almost everyone. To trade stocks, commodities and currencies in the financial markets through the Internet you need a minimum background, feasible risk capital (certainly smaller than any classical entrepreneurship), the willingness to work with information and ... learn discipline, determination and the reasons for its employment this business.
Trade stocks, commodities and currencies through the Internet - is a way for the brave. This is a business with minimum capital and strict risk management rules.This is one of the few businesses where you can reach phenomenal profits. If the decision is still engaged in this business, focuses mainly on how to trade stocks, commodities and currency safely and profitably. How to make a trade stocks, commodities and currencies reliable source of income. Anyone can teach you, tell you how to trade with minimal risk, in any case, this one will not be subject to your risk, and will not even make any decisions for you. The fact that it is - your business, your life is your decision.
Trade stocks, commodities and currencies through the Internet is risky, it is a business and as such, wishes good luck to prepared. This is not a game, and the printing press for money. Requires determination, perseverance, willingness to learn and most importantly - the discipline. The world financial and commodity derivatives - trade stocks, commodities and currency of the world of big finance.This world can become your world. You can do a lot to a little bit of money left on your account. Your money, your risks, your profits and losses, your determination, patience, courage and discipline - this is you, your inner resources. Information, education, money, calling helps, service, advice, encouragement - it is your external resources. This is your opportunity. Welcome to the world of unlimited opportunities and equal chances for all participants. Study, evaluate your chances and go.