About Stocks: Stock Investors should Avoid the Extremes

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	from Ken Little To bail or not to bail? That is a question that is asked repeatedly during these trying times. Should the government (taxpayers) bail out failing financial companies or should it let happen what the market dictates? Taxpayers should not be burdened with protecting investors. Investing involves the chance of loss and investors shouldn't expect otherwise. However, if a failure at a major financial institution threatens the whole financial system, that's a different matter. In those cases, the goal should not be to make investors whole, but to prevent a melt down. That may mean selling off the company at bargain (or lower) prices to stabilize it.
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Stock Investors should Avoid the Extremes Bet on the middle. Stock investors can help themselves if they count on extremes always swinging back to the middle.              More Topics Glossary of Stock and Investing Terms Investing 101 Stock Basics and Types of Stocks Finding a Broker The Basics of Trading Stocks Free Investing 101 E-Mail Course Trading Basics Naked Short Selling - Don't Try this at Home Naked short selling is not a good idea for most investors. In fact, there are more than a few in the financial markets who believe is should be banned or seriously reformed. If your image of naked short selling is a group of hedge fund managers sitting around in the nude, I would like to put that disturbing image out of your head.   Understanding Price to Sales Ratio You have a number of tools available to you when it comes to evaluating companies with earnings. The first three articles listed at the bottom of this article, in particular deal with earnings directly. You can add the two others on dividends and the one on return on equity to the list as specific to companies that are or have made money in the past.     Sponsored Links   Back to School Tips for Students, Parents and Teachers. Get the house, the school, and the kids ready for the new school year with shopping tips, recipe ideas, homework help and more!

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