Common Stock Investment Terms for Beginners

If you’re just starting to invest your money in 2014, you’re probably in for the besttime of your life. However, you’ll need to know some basic knowledge regarding stock investing. It might seem that you are just buying and selling stock, but you also need to understand some basic terms used in the market.

1.    The Farm Terms

Animals are a very common term in the stock market. Bull markets appear when the country is doing well with the economy and it sets the ideal conditions for GDP growth, which makes it easier and less risky to pick stocks. A bear market is the complete opposite of the bull market because the economy is not doing well, there is high unemployment and a great recession.

2.    The Common Markets

The Capital Market comprises of long-term bonds, shares and stocks. This is essential for young investors simply because the volatility of the market will have minimal effect on the final value of their investments in the future. For short term investors, there is the Money Market, which deals in annual-yield bonds, treasury bills and certificates of deposits. The Money Market does well if the country’s economy does well.

3.    Beneficial Owner

A beneficial owner is someone who is the real owner of a stock or bond. Stocks or bonds may have three names including the name of the broker, bank and the investor. The investor is the beneficial owner

RBS Hits £2.9 Billion in Total PPI Redress

RBS recently added £250 million to its PPI redress package, bringing it to a total of £2.6 billion for PPI redresses. RBS is second only to Lloyds, who had now reached £8 billion following an addition of £750 million after its third quarter financial results announcement. RBS said that its recent provisions will provide repayments for a total of 10 months based on the monthly utilisation of the bills.

RBS also admitted that it could be possible their PPI redressing could still reach until halfway the following year. There are still uncertainties to the actual redress costs, complaint numbers and uphold rates.

In total, the UK PPI redress package has now reached £17 billion, with Lloyds taking almost half of the entire bill. Experts estimate that the entire UK PPI bill could reach £20 billion or more the following year as PPI claiming does not show any sign of slowdown.

PPI repays consumer loans and mortgages in case of sickness, accidents or unemployment. You could be owed £3000-3500 for an average PPI complaint. You might want to consider having help from claims management companies in claiming PPI from RBS, Lloyds and other financial companies in the United Kingdom.

PPI has become one of the most expensive financial scandals in the United Kingdom. However, consumer confidence will still remain at an all-time low should the UK move on from PPI as banks are involved in the Libor and Euribor scandals.

Franchising for 2014? Yes or No?

I’ve had some people ask me about the feasibility of franchising for an investment in the upcoming year. This 2013 had played its toll on the European economy. The Euro zone crisis took the most highlight with the property bubble bursting and the currency’s value dropping. Everyone has smaller capital to start with. So is franchising a feasible solution? 

1.    Franchiser’s Health

Many strong fastfood and restaurant chains still remain strong especially in the corporate areas of many countries. However, those that gain greater recognition from consumers are the ones that present something unique, and most of these are small businesses. Now small businesses are likely higher risk investments, but they’re innovative. If you haven’t taken a risk with your investment for quite a while, asking the small business for franchising could open up great opportunities.

2.    Franchise Fees

The only downside to franchising is that you will really have to pay higher franchise fees. Resources, establishment and training fees are rising because of competitiveness and a proprietor will need to scrounge up some high capital. As for returns, refer to number one.

3.    Attractiveness

Still, the kind of company you work with will be the basis of your business’ attractiveness to audiences. Targeting children with kid-themed fastfood could work when you are established in nearby schools or supermalls. However, stay away from standard franchises, such as McDonalds or KFC; they are not as attractive as they once were and more people are leaning to either extreme dishes (giant burgers or fries) or fusion and specialty dishes.

The Best Way to Find Investors For Your Business

Small businesses begin humbly with small backings and for further developments, business proprietors will need investors to help them reach the other length. Finding investors, especially in today’s economic stature, could be difficult, but here are a few ways to help you.

1.    Brokers

Contacting the services of entrepreneurs or people who have successfully raised money through fundraising and preparing business plans can help you greatly. Brokers also have a network of investors looking for new business to put their money in. They could give you good insight about investors. They can also point out which investors could benefit from your business.

2.    Profiling

Your broker could give you an idea about the investors you need, but you need to lay it down on paper. There are different kinds ofinvestors; some choose to be passive and allow you free rein on the business. Others will give you advice and want to have a say in terms of the hiring process, product or project implementation and other details. Each of them could give you an advantage in your business.

3.     Total Capital Needed

Nothing attracts an investor more than knowing how much capital do you need to increase your business. If you say a good enough figure and the returns you could provide to your investors, you have a better chance of gaining more investors. It is highly important that this number is final as investors will not take kindly to figure errors, especially in business.

Common Car Warranty Scams

Many car dealers, especially certified ones with good brands and rapport with customers, could give you a good deal off a car. However, some car dealers could easily scam their way into your pocket through seemingly-harmless warranties that you do not actually need or would not actually cover your vehicle. Here are a few common car warranty scams you should know.

1.    Extended Service

Only the original car manufacturers could issue extended warranties for vehicles. What car dealers are offering you are extended-service contracts, which have different provisions from warranties. So if you receive a notification that your warranty expired but you took an “extended warranty” from your car dealer, assume that it is only extended service.

2.    Misleading Sales Pitches

Your add-ons are usually the target of car dealers in having their scams make their way into your bank account. If you purchase an add-on, some car dealers would say they have separate warranties of their own. This is a good deal, but a bundled package of warranties with your vehicle is somewhat suspicious.

3.    Shoddy Repairs

A totalled car could run for a week with rather shoddy patch ups and some car dealers sell new or used vehicles in this manner with clever paint jobs. Automatically, car dealers will offer you warranties for these types of rip-offed vehicles. If you bought one such vehicle and you have a warranty that covers your vehicle once, you can be in big trouble. Beware of very low or “too good to be true” extended warranty or service rates.

Tips on Investing in Certificates of Deposit

Certificates of Deposit (CD) ensure that you get a high return for a low risk investment you make. However, like some deals that may seem “too good to be true” you’ll need to watch out for complex and risky CD deals. Here are a few things you should note.

1.    How CDs Work

Certificates of Deposit are deposit accounts you open and deposit in with banks or thrift institutions that have a higher interest rate than regular savings accounts. CDs, like all bank accounts, are FDIC insured. You’ll invest a fixed sum of money for a fixed period of time that could go from six months to decades. It pays out once it reaches maturity and you earn the interest of the profit with your deposit.

2.    Financial Goals

Take a great look at your financial situation and ensure that you have a definite financial plan. Always assess the risk and know the call features of your CD. A small detail often forgotten by investors is how they will get paid and the processes needed once the CD matures.

3.    Brokered CDs

When you purchase CDs from a legitimate broker, the entire process may become more complex and you could put yourself at a great risk than investing directly with banks. A brokered CD could have you lose some of your principal if you withdraw early as a penalty. Always check their background, know your issuer and ask about your deposit broker’s record keeping.

Commodities You Could Invest in This Year

Oil is actually leading the commodities streak this year, but aside from oil, you have other commodities you could purchase in to ensure maximized profit this year. Here are a few things to consider when investing in commodities today.

1.    Aluminium

Forecasters expect increased infrastructure and construction stimulating contracts and policies from many developing countries in Southeast Asia including the gigantic China. This could move the prices for aluminium on the rise. Aluminium had the value of $2,087/ metric ton last year and forecasters project that by 2014, $2,300/metric ton would be its value.

2.    Copper

Again, because of infrastructure and stimulus from China, demands for copper could increase. However, the mineral could become rare and expensive as supplies are forecasted to slow down by the next five years. Copper had $2.61/pound last year and by 2014 it is projected to increase up to 3.05% from 2012 with a price of $3.72/pound

3.    Gold

Gold still has a high value especially today when the European Central Bank allows unlimited bond-purchasing this year. However, lower public demand could limit its growth by 2014. Gold had a value of $1,665/ounce in 2012 and is expected to increase by $1,800/ounce 2014.

4.    Sugar

Any investor looking for stable prices should invest in sugar. A huge supply of sugar coming from Brazil and India lowered the prices of the commodity will prevent major changes for the next two years. Sugar had $0.19/pound on 2012 and in 2014, it could increase to $0.20/pound.