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VB Personal Finance Responsibility Simulation: Tutorial I





The stock market is in its simplest form just an auction but it is one with a sting in the tail for the unwary. To help you start understanding the stock market you need to think of what makes it work. Very simply the market is driven by supply and demand. That means that if there is only a very limited number of shares in a particular company available the demand for them will be far greater than if the market place is awash with them. 

The Bull market which had lasted throughout the 1920s had even led one eminent economist, Irving Fisher, to state that "Stock prices have reached what looks like a permanently high plateau." It seemed at the time that everyone in the nation was obsessed with the stock market and share dealing became the "in thing" to do. 

Or alternatively you have made yourself dizzy flicking backwards and forwards in one of the older style ones! So do you really need to have a stock market dictionary? No but once you have got yourself a good one to help you fathom out the impenetrable terminology you will find that your investing life becomes so much easier than before. 

" really requires a question in return because it is important to find out the kind of investment they mean. We need to know which types of investment they are considering when they ask "what is the first step to investing?" Many newcomers to the world of investments think only of stocks and shares but there are of course many more options out there. 

As part of assessing your own comfort level you will want to feel comfortable that you can afford to risk losing the money that you are planning to invest. Obviously you don't want to lose it but if you absolutely can't afford to then you should look for something which carries a significantly lower level of risk. 

Just one small monthly repayment covers all your outstanding debts. Well in some cases that is very true but every case is different and you have to do you own checking to make sure you will be better off. It is important to remember that you are taking the existing balances of your bills and spreading them over the term of the new loan.