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Library of Congress Control Number: 2016935126 ISBN 978-1-119-23928-4 (pbk); ISBN 978-1-119-23929-1 (ebk); ISBN 978- 1-119-23930-7 (ebk) Stock Investing For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Stock Investing For Dummies Cheat Sheet” in the Search box. Table of Contents Cover Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1: The Essentials of Stock Investing Chapter 1: Surveying the World of Stock Investing Understanding the Basics Preparing to Buy Stocks Knowing How to Pick Winners Chapter 2: Taking Stock of Your Current Financial Situation and Goals Establishing a Starting Point by Preparing a Balance Sheet Funding Your Stock Program Setting Your Sights on Your Financial Goals Chapter 3: Defining Common Approaches to Stock Investing Matching Stocks and Strategies with Your Goals Investing for the Future Investing for a Purpose Investing for Your Personal Style Chapter 4: Recognizing Risk and Volatility Exploring Different Kinds of Risk Getting the Scoop on Volatility Minimizing Your Risk Weighing Risk against Return Chapter 5: Stock Investing through Exchange- Traded Funds Comparing Exchange-Traded Funds and Mutual Funds Choosing an Exchange-Traded Fund Taking Note of Indexes Part 2: Before You Start Buying Chapter 6: Gathering Information Looking to Stock Exchanges for Answers Grasping the Basics of Accounting and Economics Staying on Top of Financial News Reading (And Understanding) Stock Tables Using News about Dividends Evaluating Investment Tips Chapter 7: Going for Brokers Defining the Broker’s Role Distinguishing between Full-Service and Discount Brokers Choosing a Broker Discovering Various Types of Brokerage Accounts Judging Brokers’ Recommendations Chapter 8: Investing for Long-Term Growth Becoming a Value-Oriented Growth Investor Choosing Growth Stocks with a Few Handy Tips Chapter 9: Investing for Income: Dividend-Paying Stocks Understanding the Basics of Income Stocks Analyzing Income Stocks Exploring Some Typical Income Stocks Chapter 10: Understanding Technical Analysis for Stock Investors Comparing Technical Analysis and Fundamental Analysis Staying on Top of Trends Getting the Scoop on Technical Charts Surveying Technical Indicators for Stock Investors Part 3: Picking Winners Chapter 11: Using Basic Accounting to Choose Winning Stocks Recognizing Value When You See It Accounting for Value Chapter 12: Decoding Company Documents A Message from the Bigwigs: Reading the Annual Report Dig Deeper: Getting a Second Opinion Do It Yourself: Compiling Your Own Research Department Chapter 13: Emerging Sector and Industry Opportunities Telling the Difference between a Sector and an Industry Interrogating the Sectors and Industries Outlining Key Sectors and Industries Chapter 14: Small Cap Stocks, IPOs, and Motif Investing Exploring Small Caps Investigating IPOs Getting the Scoop on Motif Investing Chapter 15: The Big Economic and Political Picture Tying Together Politics and Stocks Poking into Political Resources Part 4: Investment Strategies and Tactics Chapter 16: Discovering Screening Tools Understanding the Basics of Screening Tools Touring a Stock Screening Tool Checking Out an ETF Screening Tool Chapter 17: Understanding Brokerage Orders and Trading Techniques Checking Out Brokerage Orders Buying on Margin Going Short and Coming Out Ahead Chapter 18: Using Trade Triggers and Advanced Conditional Orders Trying Trade Triggers Considering Advanced Conditional Orders Chapter 19: Getting a Handle on DPPs, DRPs, and DCA … PDQ Going Straight to Direct Purchase Programs Delving into Dividend Reinvestment Plans The One-Two Punch: Dollar Cost Averaging and DRPs Chapter 20: Corporate and Government Skullduggery: Looking at Insider Activity Tracking Insider Trading Looking at Insider Transactions Considering Corporate Stock Buybacks Stock Splits: Nothing to Go Bananas Over Keeping a Close Eye on Congress Chapter 21: Keeping More of Your Money from the Taxman Paying through the Nose: The Tax Treatment of Different Investments Sharing Your Gains with the IRS Discovering the Softer Side of the IRS: Tax Deductions for Investors Taking Advantage of Tax-Advantaged Retirement Investing Part 5: The Part of Tens Chapter 22: Ten Indicators of a Great Stock The Company Has Rising Profits The Company Has Rising Sales The Company Has Low Liabilities The Stock Is at a Bargain Price Dividends Are Growing The Market Is Growing The Company Is in a Field with a High Barrier to Entry The Company Has a Low Political Profile The Stock Is Optionable The Stock Is Benefiting from Favorable Megatrends Chapter 23: Ten Ways to Profit in a Bear Market Find Good Stocks to Buy Hunt for Dividends Unearth Gems with Bond Ratings Rotate Your Sectors Go Short on Bad Stocks Carefully Use Margin Buy a Call Option Write a Covered Call Option Write a Put Option to Generate Income Be Patient Chapter 24: Ten Investments and Strategies That Go Great with Stocks Covered Call Options Put Options Cash EE Savings Bonds I Bonds Sector Mutual Funds Motif Investing Bearish Exchange-Traded Funds Dividend Yield Exchange-Traded Funds Consumer Staples Exchange-Traded Funds Part 6: Appendixes Appendix A: Resources for Stock Investors Financial Planning Sources The Language of Investing