 What approach does a person take to begin investing in stocks? |
| I have been looking to do this sort of thing for a while now, thru those individual investing firms like Ameritrade, E-trade, Fidelity. But, I did not want to get over my head. I have some ... |
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 My 401k is tanking! What to do? |
| I'm 28 y/o. I'm told to stay and wait it out. But I get so nervous seeing my 401k tank by more than 25%. I have investments in Fidelity Magellan which invest in AIG. And my investments in ... |
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 What would u do if u had alot of money? |
| I am going to becoming across hundreds apon hundreds of thousands of dollars if not pass the million mark, here in the next year or so (offshore lawsuit), and i am tring to figure out what i should ... |
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 Homework help? |
Define liquidity?
Why is it important to know if your assets are liquid?... |
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 What is an investor? What is a trader? |
| I'd like a formal definition. How do investors decide on what stocks to invest? How does a trader decide when to trade?... |
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 Dollar Weakness? |
| Would buying up dollars now be a good idea or will it slump even further and if so, why? Is a world recession on the horizon?... |
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 My new employer matches 1%. Is it worth to invest there or open a Roth IRA? |
| My previous employer matched 1/2 of what I contributed. I only put 5% of my pay. I have maybe $3,300? in it. My new employer only matches a whopping 1% of my contributions. I am not sure if opening ... |
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 Why do some companies issue new stock to expand, while others borrow money? |
| Does anyone know the reasons why a company would choose one or the other?... |
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 STOCKS Is it possible to buy a stock with out a broker? |
I DONT WANT BROKER OFFERS !!!!
I just want to know if you can buy a stock without a broker.
Example: I want to buy Sirius Radio stocks... where do I go to buy them.
Contact ... |
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 Avoiding mutual fund fees? |
| Can I avoid paying annual mutual fund expenses by selling the mutual fund before the annual fee charged or am I charged the fee during the sale?... |
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 How can I double my money every year? |
| Ok, no scam how can you double your money every year and what sort of investing you can have? If you're a millionaire give us an honest advise! Thanks!... |
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 Can a growth stock also be a value stock? |
| I'm basically a technical/momentum trader and ignore most everything else, but I've started doing some research on other ways to evaluate stocks for trading. Do you have simple ways to ... |
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Chris R | What is the best thing to do with Dividends ; Re-invest in the same stock or into cash for new stock purchases |
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 |
 
regankc
|
This entirely depends on the potential of the business to increase its market value in the future compared to other investment options.
do you like the company and its ability to produce earnings over time?
do you like the future prospects of this company more than another company, relative to their respective current values? |
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slavaret2
 |
Depends on the type of stock.
If it's a dividend grower you own for equity income - then it makes sense to reinvest to accumulate as many shares as possible.
If, on the other hand, it's a growth stock and the dividend is incidental, then take the cash - fractional shares will only give you a headache when you sell/do your taxes. |
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Adam J
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Reinvest in whatever you think will provide you with the best return, especially if you aren't looking into setting up a DRIP. |
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Ranto
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If you can reinvest as part of a DRiP -- then you will usually buy new shares at a slight discount to the market price and save transactions costs.
If you later decide to invest in another stock, you can sell some of your shares & buy the new stock. |
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Franco
 |
Unless the co.runs a DRIP, you cannot reinvest the dividends into the same cos. as they are usually too small.
But even with DRIP, I do not advocate it as, when it comes to selling the the shares and calculating capital gains, you will have so much work, you will
wish you were not born. |
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bb4479
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Taranto is right. A rational thinker only needs to reinvest (by DRiP) as a default move to save on transaction costs and getting a discount price.
However, don't set up a DRiP on an over-valued stock, hold the cash until conditions get better. And if you already have a well diversified portfolio, buy a new business only when it's a much better deal than the lot you already have. |
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Tom H
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Set up a DRIP to automatically re-invest. Exceptions: The investment is not a long term investment. Or you have a huge dollar value portfolio & you are a terrific trader. |
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