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Shares Made Simple: A beginner's guide to the stock market

Book Description

Shares Made Simple, written by highly respected financial journalist Rodney Hobson, tears away the mystique and jargon that surrounds the stock market. It takes you step by step through the most basic concepts of stock market investing, carefully explaining issues such as: - What shares are and how they are bought and sold - Why share prices go up and down - Why some companies' shares look cheap while others appear to be expensive - The hidden traps for the unwary This fully revised and updated second edition of this bestselling book sets out to create a level playing field between the stock market professionals and the small investor. As rising living standards and inherited cash provide assets for investment, no-one needs to suffer pitiful bank interest rates when there is real money to be made in sharing the nation's wealth. Thousands of investors have already benefited from Rodney's clear explanation of the stock market - now you can too.

Table of Contents

  1. Cover
  2. Publishing details
  3. Disclaimer
  4. About the author
  5. Preface
    1. Who this book is for
    2. Structure of the book
    3. Supporting website
  6. Introduction
  7. SECTION A: Shares
    1. Chapter 1: What Are Shares?
      1. Stocks or shares?
      2. Where do shares come from?
      3. Issued capital
      4. Part paid shares
      5. A and B shares
      6. Preference shares
      7. Convertibles
    2. Chapter 2: How Shares Are Created
      1. Primary market
      2. Secondary market
      3. Share cancellations
      4. Treasury shares
    3. Chapter 3: Whose Company Is It?
      1. Shareholder revolts
      2. Directors
    4. Chapter 4: What’s In It For Me?
      1. Dividends
      2. Capital gains
      3. Shareholder perks
    5. Chapter 5: Is My Investment Safe?
      1. Shares versus other investments
      2. Insider trading
  8. SECTION B: The Stock Market
    1. Chapter 6: The Market Place
      1. The London Stock Exchange
      2. Trading hours
    2. Chapter 7: Full Listings And AIM
      1. Full listing
      2. Alternative Investment Market
      3. Suspension of share trading
      4. Companies delisting
    3. Chapter 8: How Shares Are Traded
      1. Different forms of trading
      2. Market makers
      3. SETS
      4. SETSqx
      5. SEAQ
      6. International Order Book
      7. Share certificates and CREST
    4. Chapter 9: Stock Market Indices
      1. Weightings
  9. SECTION C: Companies
    1. Chapter 10: Company Focus
      1. What does the company do?
      2. Assessing a company
    2. Chapter 11: Income Statement (Profit And Loss)
    3. Chapter 12: Balance Sheet
    4. Chapter 13: Potential Nasties
      1. Banking covenants
      2. Kitchen sink accounting
      3. Strategic reviews
      4. Pensions
  10. SECTION D: Investing
    1. Chapter 14: Starting Out
      1. First – study yourself
      2. Keep yourself informed
      3. Factors that affect share prices
      4. Facing reality
    2. Chapter 15: Stockbrokers
      1. Cold callers – a warning
    3. Chapter 16: Fundamental Data
      1. Historic and prospective data
      2. Ratios
    4. Chapter 17: Charting
      1. Floors and ceilings
      2. Rangebound
      3. Narrowing triangles
      4. Peaks and troughs
    5. Chapter 18: Tips
      1. Stockbroker analysts
      2. Newspapers and magazines
    6. Chapter 19: Jargon Busting
      1. Those pesky animals
      2. Catching falling knives
    7. Chapter 20: Rights Issues And Placings
      1. Rights issue
      2. Placing and open offer
      3. Bonus issues and share splits
  11. SECTION E: Takeovers
    1. Chapter 21: Mergers And Acquisitions
      1. Takeovers
      2. Mergers
    2. Chapter 22: Before A Bid
      1. Offer period
      2. Put up or shut up
      3. Mandatory offers
      4. Substantial acquisition rules
      5. Inducement and break fees
      6. Due diligence
    3. Chapter 23: A Bid Is Launched
      1. Irrevocable acceptances
      2. Hostile bids
      3. The offeror
      4. Bid terms
      5. Compulsory share purchases
      6. Loan notes
      7. Reverse takeovers
      8. Scheme of arrangement
      9. Partial offers and tender offers
      10. Stub equity
      11. Competition regulators
    4. Chapter 24: Bid Timetable
      1. Competing bidders
      2. Accelerated bids
    5. Chapter 25: Management Buyouts
  12. APPENDIX
    1. Useful Websites
    2. Great savings on Rodney Hobson’s other books
      1. Dividend Investor: A practical guide to building a share portfolio designed to maximise income
      2. How to Build a Share Portfolio: A practical guide to selecting and monitoring a portfolio of shares
      3. Small Companies Big Profits: How to make money investing in small companies
      4. Understanding Company News: How to interpret stock market announcements