Home | Links | Contact Us | Bookmark
Financial Forum Search :
   Homepage      News      Financial Topics     Finance Directories      Financial Forum      Dictionary  
Financial Forum    Investing
Finance Discussion Forum

 Why does the government keep printing up money to eventually completely collapse the economy?
tell me why think that is and support your answer

to me it's obvious.. it's because every time they bailout a sector of the economy like the banks or auto industry they OWN part ...


 What's the Difference Between Income and Revenue (10 Points Best Answer)?
My Investment teacher wants me to find rate of income growth for a stock and rate of revenue for the stock. What's the difference between income and revenue?...


 If I gave you £500 to buy shares with, which company would you invest in?
And why?...


 Is long term stock investing pretty much a guaranteed profit unless the company goes bankrupt?
Why would people sell a stock @ a losing price unless they NEEDED the money at the moment? I can understand if the business is about to close but yeah? How hard is it to sell a high stock!?!? I know ...


 What would you do with $30,000? I inherited the money, looking for best place to invest.?
...


 Hypothetical question?
Hypothetical question

You have a loan of 45K
you require another 60K for a project

you have one freehold property with rental income

should you sell the free ...


 Does the guide to making internet millions actually work?
i have seen jeff pauls guide to making internet millions and was wondering if it actually works and how does it?...


 What are all different charges made when we invest in mutual funds?
hi i am new to mutual funds can any body tell me what are all different charges made when we invest in mutual funds...please provide me the details of all the ...


 Why does Pfizer (PFE) stock price drop so much?
as it announces the acquisition of Weyth. Isn't it a good news for the company?...


 What shall I do with this money?
I have been left £100 in a will from my great step-grandmother, but I never really knew her, so it doesn't feel ethical accepting her money. I thought about donating it to a charity, but which ...


 What is the best way to invest $1000 USD?
Iam currently collecting 5.05% In a Savings account.
I don't need this money very much at this time and I am willing not use it for a 6 month plus period....


 Why is Yahoo stock down 25%?
Is it because they delete our questions for no good reason and we are complaining to sponsors? Is it because they have some outdated aol rules? Is it because their searches are not as good as G...


 What are some good stocks to invest in?
Give ticker symbol if you have them ...


 Shares or mutualfunds where to invest?
how i can spend my money shares or ...


 Is it smart to put 4k down all at once in a roth ira.. instead of doing it month to month?
...


 Should the United States invest more in oil production in this country?

Additional Details
I am talking about investing in America only. Yes alternative to oil is preferred, but, until we can have alternatives, stop getting oil from other countries. Isn'...


 What is a good stock to invest in these days?
...


 Why DO share prices go down as well as up?

Additional Details
Okay - so why will there be LESS of a demand for something?

I'm just trying to draw some sort of comparison with real life. A loaf of bread, for ...


 I have $5,000.00 to invest for 10 years - where should I invest - how much can I expect to make?
I'm looking for specific places to invest and real dollar amounts of how much I can make....


 Can anyone tell me the best online brokerage for buying/selling investments?
I am 24 years old. I want a site with low rates and great features to use. Is there a site that is the unspoken leader in the online investment community? I have heard of Etrade, scottstrade, ...



Alan M
Why would buying a fund be better than buying each Dow stock?
On a 10,000 dollar investment I would pay 4% in commissions after all have been bought and sold. Lets say that the investment lasts 30 years. The 4% commission would be higher because of all the spin offs. Over a 30 year period there would be many splits and many dividends. Would I make more on a DIA fund or more buying all the individual stocks one by one. With a fund, where do all the dividends go, into the fund handlers hand? Do the spin offs of DIA stocks account in a fund? Are they added into the fund?
Additional Details
I guess you have dissect every word on here. I meant the fees that I would have to pay for selling the spin offs.
                     
 




KeyBlast
If all you want to do is track the DJIA, then you should just buy the stocks yourself.

As you mentioned a mutual fund will be professionally managed and will charge huge fees. If you use Zecco.com then trading is free! So, use that if you buy the individual stocks so that you dont pay any fees.

In a fund, the dividends still eventually get paid to the fund holders. As far as spin offs etc. the fund manager has control over what to do; he may heavily weight some stocks and hold very little of another. It all depends...


zyberianwarrior
Rating
zecco has serious customer service issues stay away from them. second you got it wrong on the commisisons you are not charged a commission for a spin off split whatever unless you buy the spin off company. Third all you are doing is emulating the market NOT beating it. The goal is to BEAT the market. Which is why I don't mirrior any of the major indexes. As for the last part its up to the fund manager wether or not to add them.


jebediabartlett
Huge fees? 4% commissions? Broker copping dividends?
Listen, when you get over your mis-information and paranoia...try a reputable company like Fidelity...get into a couple of funds... cover the DOW if that's what you want... ( but DON'T " index"...it leaves no room for a professional manager to make changes,called IMPROVEMENTS, in your fund) That's what you pay your ( tiny ) fee for.
If you take a little risk... you'll beat the DOW or most indices by quite a bit ( I have three funds averaging over 32% per year..last four)....and I have NO complaints or misconceptions about what it happening !!
If you think the big , bad, broker is out to get your $ 20.00 just put your money in the bank and get 3.5 %
Added later: FEMKX..FLATX..EUROX


jeff410
With that ten thousand in a fund you get better diversification with a lower relative cost. Dividends are usually paid out to fund shareholders. And spinoffs should add to the value of your shares in the fund, the NAV.


gomanyes562
Buying each individual stock one by one would be a big hassle, and extremely time consuming. A fund is an assortment of many stocks, and the price of the fund reflects the performance of its stocks, including spinoffs, splits, dividends, etc.


Dr. Deth
You also wouldn't be able to afford to buy 100 shares of stock of each stock with only 10,000, so you would have to pay higher commissions/fee for a short lot - comm to buy and sell might be a lot higher than 4%. Dividends get paid to you and you can re-invest them automatically


WG-Gann
Rating
Hopefully you would find a Fund with a lower entry and exit than that.

After all you are just looking for a fund that just buys and holds?

Stocks are very cheap to buy outright these days - 4% or even 2% is way over.

So if you are a buy and holder AND you have enough money to buy all 30 Dow Stocks then you will always be better off than pay 1% or 2% commission to enter an INDEX buy and hold fund).


kevinjohnbrown
The Dow Jones Industrial Average is a scaled average, not the actual average of the prices of its component stocks—the sum of the component prices is divided by a divisor, which changes over time, to generate the value of the index. So you would be hard pressed to duplicate the weighting of the DJIA by purchasing the individual stocks that make up the DJIA. You would need to constantly adjust the shares you hold in each component stock to match the index.

DIA is an ETF (Exchange Traded Fund) which closely matches the DJIA. It can be purchased and sold just like an individual stock and it does pay dividends from its compenent stocks.

So if you want to invest your $10,000 in the Dow component stocks it is much more practical and cost effective to simply purchase shares of DIA. Your returns will be similar (or better because of less commissions) to having split your $10K across the 30 Dow component stocks.


 Enter Your Message or Comment


User Name:  
User Email:   
Post a comment:







Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy