Join getAbstract to access the summary!

How to Buy Stocks

Join getAbstract to access the summary!

How to Buy Stocks

Little, Brown US,

15 min read
10 take-aways
Text available

What's inside?

In a university, this book would be Stock Market 101: a solid, basic explanation of the nuts and bolts of buying stocks.

Editorial Rating

7

Qualities

  • Applicable

Recommendation

In this eighth edition of Louis Engel’s classic stock market primer, former Merrill Lynch Vice President Henry R. Hecht adds updated information for contemporary readers. This critically acclaimed book provides a ground-level explanation of nearly every aspect of the stock market and investing, while also offering savvy investment principles. It introduces readers to common investment terms and provides a broad picture of stock investing. The book is well-organized and clearly written, as befits a traditional reference in the field. As the author says, “This is a book about how to make your money earn more money for you by investing it. It is not a book about how to make a fortune.” getAbstract recommends this manual to neophyte investors and anyone who wants to learn how to make sound long-term investments in the stock market.

Summary

The Basics

Do investment terms like “capital gains,” “venture capital” or “inverse yield curve” intimidate you? If so, you’re not alone. The sophisticated jargon of the investment trade has convinced many people that investing is too difficult to understand, deterring them from buying stocks. However, investing only seems complex because it involves many esoteric words; the underlying concepts and processes are actually very easy to grasp. Once you build your investing vocabulary and educate yourself about how the stock market works, you will realize that it holds very little mystery.

The stock market has always increased over long periods of time, “a trend that isn’t likely to be reversed.” Thus, when you buy for the long haul, instead of dipping in and out of the market quickly, you are likelier to make a sound investment. You can buy stocks and bonds directly, or you can invest in them indirectly – for example, through mutual funds. Stocks, bonds and mutual funds are all examples of “securities,” or “certificates that represent your participation in an investment activity.” Your involvement is “negotiable,” so you can sell your interest, or increase it by purchasing...

About the Authors

Henry R. Hecht is a former vice president and manager of editorial services at Merrill Lynch. He now works as a writer and an editorial consultant. Louis Engel, the original author of How to Buy Stocks, devoted his career to the investment trade.

Comment on this summary