For ordinary stocks, large enough, with legitimate earnings and somewhat predictable prospects, the size of the bid - ask spread reflects the short - run volatility of price.
Money market trading involves the investors and companies in a trading with much lower risk than
ordinary stock markets.
Investment choices should go
beyond ordinary stock and bond funds to include options like natural resources and inflation - protected securities funds.
For ordinary stocks, large enough, with legitimate earnings and somewhat predictable prospects, the size of the bid - ask spread reflects the short - run volatility of price.
Within the realm
of ordinary stocks and bonds, the best I can come up with is a pair of long and short ETFs, such as the S&P 500 Spyder (SPY) matched with the ProShares Short S&P 500 fund (SH).
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the rules, pointing out that rates of 0 %, 15 %, or 20 % can apply to qualified dividends
on ordinary stocks that are eligible for preferential rates.
The shares of the ETF would have traded on a major exchange, and let ordinary investors use their brokerage accounts to short them in the same way as
an ordinary stock.
Fortunately some American funds trade on the stock market like
an ordinary stock.
St. Nicholas dropped gold coins down the widower's chimney by night, and one of the coins fell into one of
the ordinary stockings hung by the fire to dry.
Preferred stocks yield better than
ordinary stocks and are highly reliable streams of income.
This is
no ordinary stock investment portfolio.
Easily browsable, up - to - the - point information on exchange - traded funds (ETFs), closed - end funds (CEFs) and exchange - traded notes (ETNs), which are all collective instruments that are traded in stock markets, as if they were
ordinary stock.
It's not
an ordinary stock that they are valuing, it's their stock, and because of this, they are unable to think objectively about the stock's value.
They also may have tax advantages over bonds and
ordinary stocks, because if properties are sold, part of the annual payout represents a return of capital.