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Important Stock Market Terms to Know

The stock market is a public exchange between buyers and sellers. Companies issue stocks, which are part of a company’s equity, and people buy shares of that stock. A dividend is a piece of that company. Buyers can get one or more shares of a stock, depending on how much money they are willing to invest.

The purpose of buying and selling stocks is to avoid inflation, which is when the price of a certain economy rises over time, reducing the value of money. A person can buy shares at one point in time, and if the company does well in the future, the shares can be sold at a higher price than initially purchased.

Participating in the stock market can be a gamble. Here are some terms to know how to navigate the stock market as a beginner.

Annual Report
Companies want buyers to purchase shares of their stocks, to increase their profits. To inform potential buyers about their shares, companies prepare an annual report to be presented to shareholders. This report contains information about the performance of the shares throughout the previous year, in an attempt to persuade shareholders to buy more.

Leverage
Buying a share of stock is not the only thing a buyer can do. Borrowing is also an option. When you borrow a share from a broker, who is essentially a middleman between the buying and selling process, you can sell the share at a higher price. Then you can return the share and keep the profits made. This is called leverage, and it can be a risky business.

Short-Selling
Speaking of borrowing, shares can also be borrowed from other buyers. The share is sold before it has a chance to lose its value, hence the term “short-selling.” The profit obtained from this exchange can be used to buy the share back when it costs less than before, allowing the share to be returned to the original person it was borrowed from. This results in keeping the difference between the profits made from selling the share.

Volatility
To describe the extent to which a stock’s price rises and falls, the term ‘volatility’ is used. Highly volatile stocks have unstable price changes, even throughout just a day. The stock price can skyrocket unsuspectingly, or it can take a dive. It can be difficult to estimate a volatile stock’s trajectory, which is why buying a shared form such stocks are high-risk. However, a stock like this can be extremely rewarding during its high points.

Originally posted on KyleDennis.co.

Leadership Tips To Remember As An Entrepreneur

To succeed in the market today, entrepreneurs need a set of various competencies, one of which is leadership. Leadership happens to be that major ingredient, which can facilitate a business’s sustained existence and competitiveness in the market. Luckily, leadership is a trainable attribute that can be gradually built and enhanced. Here are four major leadership tips to remember as an entrepreneur.

Be Goal-Oriented
Every leader should be able to think beyond the short-term into the long-term. In a company setting, where so many goals made exist, coordinating different functions may prove a major challenge. The only way that leaders can survive is to remain goal-oriented, where every function within the organization on a daily basis is geared towards achieving specific objectives. Goal setting allows leaders to remain focused, even when intermediary challenges threatened to derail the organization’s course.

Lead From The Front
A leader should lead from the front in almost all aspects of organizational importance. Subordinates in a leadership structure will highly likely follow the leader’s example. Endeavoring to be competent in virtually all attributes of a good leader ensures that you win the trust and heart of the rest of the workers. When it comes to leading from the front, although much can be said, it all revolves around setting high standards and expectations for other workers.

Master Teamwork
The core essence of leadership is to provide guidance to an existing team. To be an effective leader, therefore, one needs to know how to form a well-balanced team in the workplace. Coordinating different team activities through progressive training, coaching, teaching, and delegation of responsibilities enable each team to work together towards achieving the identified goal. Coordinating teamwork is not as simple as just delegating responsibilities. It has to do with eliciting the best performance within each team by providing the necessary atmosphere for optimal production.

Excellence In Communication
Communication is what brings people together to work as a unit. Being a leader puts one at the center of an organization. To succeed in such an endeavor, one needs to master different types of organizational communication. Knowing how to compose, channel, and listen to information facilitates a cordial working relationship that is governed by an appropriate feedback system.

Originally posted on KyleDennis.info.

Three Tech Stocks You Should Consider Buying Now

Tech stocks have been on a tear recently. Although the sector saw some pretty wild fluctuations in 2018, it has still outpaced the S&P 500 over the last decade. Many analysts believe this year’s strong performance may signal the potential for even more long-term growth. Here are three tech stocks that may be worth watching going forward.

Microsoft
The company was out of favor with many investors over the past several years. However, Microsoft is back in a big way. In early 2019, it was the only company with a $1 trillion market cap. Investors believe it still has room to grow. The company has put itself in a position to dominate AI and machine learning, and it now devotes most of its resources to this rapidly advancing technology.

Micron
Micron is an undervalued company, which is good news for value investors. This memory-chip maker is ready for a big comeback after the company suffered a recent downturn. Many tech investors consider Micron a strong buy. Most of the company’s struggles stemmed from the U.S. government’s squabble over trade with China. Once the two countries agree on a trade deal, Micron should see stronger free cash flow. Investors point to the company trading at a very low 5.6 times earnings.

Paypal
As the leader in alternative banking and finance, PayPal remains a dominant force in the tech sector. The company’s model focuses on both merchants and consumers, which gives PayPal almost full control over the ever-popular customer experience. PayPal is also in a unique position to “democratize” banking and finance. The company hopes its growing presence will open the doors to underserved populations with little to no banking options. Estimates show that the number is well over 2 billion people worldwide. Some analysts speculate Paypal could see 20 percent earnings growth over the next decade.

Honorable Mention
Apple remains one of the most dominant companies in the world, so why would anyone bet against the company? In early 2004, Apple’s stock was worth just south of $4 per share. Today, the company has a market cap of $900 billion. Many millionaires can thank Apple for their healthy investment portfolios. Who is to say the stock will not double, or even triple, over the next decade?
Originally posted on KyleDennis.co.

Tips For Starting A Small Business

Starting a business is exciting, but it can also be intimidating. While it is an opportunity for you to realize your dreams, failure can result in a financial disaster. Instead of letting those worries keep you from trying to start your business, your fear of failure should motivate you to succeed.

Listen to Everything
Once people find out that you’re starting your own business, they will be eager to impart their wisdom. Some will try to discourage you for their own reasons, while others will genuinely try to help. In either case, listen to everything and think about what they’re saying and what their body language is telling you. Some advice will work for you, but don’t be afraid to discard opinions that don’t seem to promote the goals you’re trying to achieve.

Solve a Problem
It’s not enough to sell a popular item or a new innovation. Your product should be a solution that’s unique and useful to consumers. No matter what product you have developed, its primary selling points should revolve around how it can be useful to your targeted consumers. The more inventive your solution, the more likely your product will sell.

Try a Trial Run
As you start out, offer your product to a few friends and co-workers to get their feedback. This will help you learn how to refine the product and how to market it to consumers. If you do this before you start your business, you can work out the kinks before offering your product to the public.

Allow Your Business to Grow at Its Own Pace
While it may be tempting to go out and buy high-priced equipment and tools, try only to buy the equipment you need. You can upgrade later as your business grows and you begin generating a profit. Similarly, only hire those employees that you need to ensure the daily operation of your business. If it’s cheaper to outsource some tasks, go ahead and do that.

The first couple of years that you run your business will be lean, and you may not see a profit right away. Smart entrepreneurs will plan for this by saving extra money to cover expenses during those first years, or they may keep a job on the side. As long as you develop a strong business strategy and dedicate yourself to its success, there’s no reason you can’t build a thriving business.

Originally posted on KyleDennis.info.