Questions on Market Workings


Questions on General Markets Workings Answered here. I hope you will find them useful and informative.
Q.
What are Broker Tips?
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What is behind the jargon that analyst use in terms of rating shares. e.g. Underweight, Neutral and Overweight.
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What is the difference between the Bid and Ask?
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What are Preference Shares?
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So are Preference Shares like Loans taken at LIBOR?
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What is a Share Split?
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Why do I have to pay tax on shareholdings?
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What is Dividend Cover?
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What is the difference between the ex dividend and record date?
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Can you tell me how to find out dates of company ex-dividend dates?
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What is the difference between a SCRIP and a DRIP?
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What is Cashflow?
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Please explain 'Yield'?
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Why isn't an AIM stock with a big capitalization like Playtech not in the FTSE 250?
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How are stocks promoted/relegated in the FTSE and how does this impact on a share's price?
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What happens to a spread bet quarterly bet if a company were to move from the main market to AIM?
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If you knew a company was about to move from AIM to Main market would you buy before it moved or just after?
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Mergers - Why do the acquiring company shares often fall while the target company shares rise?
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Are there rules on when profit warnings have to be issued?
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What is a Placing?
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What are the main debt considerations to consider?
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Why do buybacks work?
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Shares going into treasury, does that mean the total number of shares remains the same but sharesholders hold an overall greater share of their own company?
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What does it mean when a stock is said to 'Bounce'?
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Housebuilders priced below book value...isn't that a very strong positive buy signal?
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Why are Shared Ownership Schemes usually a bad idea?
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What are REITS?
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Risk grade - what risk grade?
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What is a 'Price Monitoring Extension'?
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What is Capitulation?
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Is it best to invest in high or low priced shares?
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Buying many shares - is it more worthwhile having my fingers in as many pies?
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But what proportion of your portfolio would you allocate to just one share?
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How do you find the right stocks to trade at the right time?
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How does one select which stocks to invest in?
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So tell me what study and research would you suggest one does?
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How important is free cash in selecting a company to invest in?
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How do you measure how cheap or expensive a share is?
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How can I compare market capitalisation against profits?
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What is 'Beta' in a share?
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How can a sector help you find performing stocks?
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I'm looking for tips on how to guesstimate a target share price...?
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How does corporate news affect the price of stock prices?
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In 2007, JSG share price was trading the in the range of 300-400p - now its 30p surely it could head towards there again?
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How do stock prices usually react to an upbeat trading results market update?
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Is it a good idea to buy more of a stock that's doing well before it gets too expensive or hang on to my cash until another opportunity arises?
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Do you have any tips in picking penny shares?
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Do you pick shorts based on technical analysis? Or do you just use technical analysis to filter a short list and then look at fundamentals as well?
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Sure there might be some decent shorts around but in general its going against the market trend & therefore more difficult to make money?
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What's the biggest risk with shorting?
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With so many investors looking at shares, don't you think that most shares will be trading at a price that reflects their current balance of risk?
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If a stock is said to be 'Good Value' what is meant by that?
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What about buying into underperforming 'badly managed companies' hoping for a turnaround?
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Any good sources of instantaneous news on equity prices and other important news?
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Can you suggest me any sites or resources from which to obtain the best overview as to what is occurring in the markets throughout the day?
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Any tips on how to keep up-to-date with RNS notifications?
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I was wondering if you can recommend a website that emails company news by sector?
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Are there any tipsters or trading publications that you recommend?
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Which are the best spreadbetting books out there to read?
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What about Bonds?
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Moody's, Standard and Poor's and Fitch - what are they?
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What is a Depositary Receipt?
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What are Gilts?
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In one instant this year the government wasn't able to sell all offered gilts - does this imply that Brown is having trouble...
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My Index Linked Gilts fund is falling in value, will it recover? What's the outlook for gilts in times like this?
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'If you buy index-linked gilts you get protection whatever the level of inflation. In fact deflation is best as there is a stop-loss on them...'
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How does inflation affect an investment portfolio?
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What is the difference between the Bank of England rate and LIBOR?
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If the BOE can simply make unlimited loans to keep LIBOR down then why haven't they done it before to control LIBOR if it were so easy?
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Is government borrowing inflationary?
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How does one bet on interest rates?
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Tell me more about spread trading long-term interest rates...
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What does the expression "short Sterling" mean, exactly?
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Are the financial futures markets reliable predictors of the future?
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What is an Exchange Traded Fund (ETF)?
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Why are ETFs so popular in the USA with personal investors?
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What is the difference between ETFs and ETCs?
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Are Exchange Traded Funds derivatives?
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Are Exchange Traded Funds a good trading tool?
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How safe is an Exchange Traded Fund?
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Why are ETFS often better than an actively managed fund?
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What sort of rough percentage profit would a good fund manager achieve as an average?
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What about those funds promising to preserve your capital should the stock market drop?
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I have been looking at Index Trackers in the UK and in Ireland...
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I bought some ETF's recently and noticed I did not have to pay stamp duty ON them as you normally do with other stocks and shares?
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Assuming a sustained rally in the US is coming, what's the best vehicle (with least fees) for a UK investor to get in to the S&P 500...etc?
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Why should you be careful in investing in ETFs when the Pound is rising versus the Dollar?
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Is there an advantage in using GLD (an exchange traded fund) for example over a spreadbet on gold future?
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How does spread betting compare to trading ETFs?
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Is it possible to spread bet iShares ETFs?
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Can you give me the name of an ETF that tracks physical silver?
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I'd like to ask whether it is possible to bet on the Sensex (India) or India 50 and Russian indices?
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How to I get exposure to Brazil?
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Do you think it's better to buy when everyone is selling like today?
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Is high volatility good for spread betting?
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Why do shares fall faster going DOWN and go UP slower?
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Is buying stocks a rip-off?
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I bought in the morning and am a bit disappointed as I did the research and felt that it was a sure fire buy and that the rewards would be a rising price early doors?!
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I've just bought a share with strong upward momentum and it started falling the day after I bought it, surprise, surprise!
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What is Pyramiding?
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Add more to winning positions!!? Why????
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I went for the FTSE long from 5174 at a massive 2pp! If only I'd dare do more!
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About Momentum Investing. Why would I want to buy a share that has already gone up?
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How do I know when the strong trend is over and I need to close my positions?
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Can you tell me more about timing buys/sells or is it something that comes with experience?
Q.
The problem with this is that the gains per trade also go drastically down when you are using a trading system which risks just 2%...

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