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IndexNumericsRITEMADAAL8-K SEC form, 312, 40410-K SEC reports, 118, 312, 407–40810-K wraps, 40910-Q SEC reports, 118, 312, 405–40714A (proxy statements), 409–41052-week high column (stock tables), 11152-week low column (stock tables), 11260 Minutes, 211401(k) plans, 59403(b) plans, 59529 savings plan, 193adviser funds (at Fidelity), 274Affordable Care Act (Obamacare), 464after-tax returns, 29–30agency bondsdefault risk, 207defined, 170evaluating government commitment, 206–207issuers, 205–206markups, 207overview, 205taxes, 207–208yield, 207agentsindividual bonds, 216–218transfer agents, 339, 347aggregators (RSS feeds), 310Alcatel, 400Alcoa, 404alternative energy stocks, 397A.M. Best rating service, 202American Association of Individual Investors,317American Express, 393American Stock Exchange (Amex), 102analysts. See also fundamental analysisChartered Financial Analysts, 16, 240growth stocks and, 126technical, 384, 388The Analyst’s Accounting Observer website, 312analyzing returnsbond returns, 31–32real estate returns, 34–35savings and money market account returns,30–31stock returns, 32–33total return, 28–30COPYRIGHTEA/AA/AAA bond ratings, 138, 202ABCD shares, 259–260accountants, 369accountingfundamental analysisfinancing activities, 411–412investing activities, 411operating activities, 411overview, 410percentage change, 413stock investing, 103–104Accounting For Dummies (Tracy), 410accounting value (book value), 145, 388accounts receivable, 154accrual bonds, 199accrual interest (I bonds), 199ACH (Automated Clearing House) technology,338activation price (stop limit orders), 350active investors, 291–292admission costs (real estate investing), 458–459Index493

annual reportsBerkshire Hathaway, 392changing face of, 409obtaining financial data from, 408–409annuities, 61–62antispyware software, 314antivirus software, 314apartments, 450–452appreciationcapital appreciation, 119defined, 29taxes and, 63–64, 424appsFeedDemon app, 309–310mobile trading, 336overview, 296TweetDeck app, 309The Arithmetic of Active Management, 291Artisan Wealth Management, 209, 221ask price, 398asset class investment, 178assetsbalance sheet, 149, 151, 379–380defined, 103intangible, 145liquidating, 412monitoring, 360tangible, 145at-cost basis (mutual funds), 273ATM networks, 87–88attached housingcondos, 449co-ops, 450overview, 448townhomes, 450audio software, 308Auditor’s opinion (10-K report), 408auto insurance, 435Automated Clearing House (ACH) technology,338494Investing All-in-One For Dummiesaverage cost method, 69average effective duration, 196Bback-end loads (bond funds), 232, 260Bacon, Peter W., 79balance sheetfundamental analysis, 362, 379researching companyassessing financial strength over time,151–152assets, 151calculating net worth, 104, 146debt, 149derivatives, 149–150equity, 150financial assets, 149inventory, 149liabilities, 151net worth, 151total assets, 149bank accountscertificates of deposit, 11–12, 31, 88–89, 133checking accounts, 87–88debit cards, 87–88evaluating banks, 90FDIC insurance, 86online banking, 91overview, 85savings accounts, 88security, 89traditional banks versus online banks, 86–87Bank of America, 326, 329banks, evaluating, 90barriers to entry (local real estate market),479–484Barron’s, 115, 305, 334BBB bond rating, 203Berkshire Hathaway, 391–393Bernanke, Ben, 47, 48, 49–50

bid price, 398bid/ask spread, 213–214, 398Big Board (New York Stock Exchange), 102, 402BigCharts.com, 303Bing, 313Bing News, 302bloated markets, 23–24blogs, 307Bloomberg, 108, 300, 301Blue Coat Systems, 364board members, fundamental analysis by, 370Bogle, John, 273, 386Bogleheads, 291bond basketschoosing, 230–232closed-end funds, 227–228exchange-traded funds, 228–229exchange-traded notes, 229–230mutual funds, 227open-end funds, 226, 227, 238–240overview, 226unit investment trusts, 229bond dealers, 215–216bond fundsback-end loads, 232, 260Fidelity, 273finding, 171loads, 227, 232bond investingagency bondsdefault risk, 207defined, 170evaluating government commitment,206–207issuers, 205–206markups, 207overview, 205taxes, 207–208yield, 207bond basketschoosing, 230–232closed-end funds, 227–228exchange-traded funds, 228–229exchange-traded notes, 229–230mutual funds, 227open-end funds, 226, 227, 238–240overview, 226unit investment trusts, 229corporate bondscallability, 203compared to Treasury bonds, 202convertibility, 203–204credit ratings, 202–203defined, 170overview, 201volatility (risk), 204–205diversifying, 167–168exchange-traded funds, 177financing business, 412fixed-income investingbond portfolio, 173corporate bonds, 174inflation, 172municipal bonds, 174–175sovereign bonds, 175–176high-yield bonds, 168–169importance of, 176index funds, 177individual bondsbond dealers, 215–216brokers/agents, 217–218defined, 171financial planner, 219laddering, 222–224online trading, 218–222overview, 213–214purchasing, 217transparency, 214–215Index495

bond investing (continued)interestcalculating rates of return, 180–182fixed-income securities, 164individual bonds, 223–224maturities, 165measuring volatility, 194–196overview, 179–180researching, 182–188total return, 191–194yield, 188–191intermediate-term bonds, 165internationalization, 178issuers, 165–166issuing bonds, 40–41long-term bonds, 165mortgage-backed securities, 208–209municipal bondscallability, 210defined, 170diversification, 210–211double-tax free, 212issuers, 209–210national, 212state, 212taxes, 210overview, 163–165, 197–198savings bondsEE bonds, 199I bonds, 199overview, 198short-term bonds, 165stability of, 166–167tracking market, 301transparency, 177Treasuriesoverview, 199–200tracking market, 301Treasury bills, 31, 200, 301496Investing All-in-One For DummiesTreasury bonds, 169–170, 177–178, 200, 202Treasury notes, 200, 301Treasury Inflation-Protected Securities,200–201bond ladderingdefined, 171interest rates, 223–224overview, 222–223time frame, 224bond ratingsA/AA/AAA, 138, 202BBB, 203CCC, 203overview, 137–138, 184–185bond returns, 31–32book value (accounting value), 145, 388book-entry issue (Treasuries), 197bookmarking sites, 294–295bottom line, 153brand name, building, 43brand strength (company), 123Briefing.com, 302, 303brokers. See also discount brokersfull-service, 222individual bonds, 216–218onlineavoiding hidden fees, 332–334discounters, 323–331finding, 320–322full-service traditional, 331–332mobile trading, 336–337money market funds, 338overview, 319researching, 335reviewers, 334setting up account, 341–342Brown, Ray, 440Buffett, Warren, 119, 121, 317, 360, 383,391–393

built-in firewalls, 314bullet bonds, 207business accounts, money market mutualfunds as, 96Business Math For Dummies (Sterling), 410buy-and-hold strategies (fundamental analysis),398–399buyer’s market, 490buying in the path of progress (undevelopedland), 453buying without brokermutual funds, 340–341overview, 338stocks, 339–340Ccallable bondsagency bonds, 207corporate bonds, 201, 203defined, 210municipal bonds, 210overview, 185–186capitaldefined, 39, 238for real estate investingadmission costs, 458–459cash, 460–464options, 430overview, 457savings, 460capital appreciation, 119capital gainsbonds, 192defined, 64short-term, 66, 398–399Capital One Investing, 323, 325career risk, 27–28cashcash equivalentschecking accounts, 13money market mutual funds, 13savings accounts, 13–14for real estate investingalternative approaches, 461cash value life insurance, 464financial investments, 463–464home equity, 462–463overview, 460–461retirement savings, 462cash flowapartments, 450fundamental analysis, 362, 380real estate investing and, 424cash value life insurance, 464cause and effect concept (stock investing), 105CCC bond rating, 203CCIM (Certified Commercial InvestmentMember) designation, 469CDs (certificates of deposit)early-withdrawal penalties, 31, 88generating income from, 11–12security, 133taxes and, 89yields, 89certificate fees (brokers), 334Certified Commercial Investment Member(CCIM) designation, 469CFAs (Chartered Financial Analysts), 16, 240CGM Focus fund, 264–265Chany, Kalman, 81Charles Schwab, 277, 279, 326–327, 329Charles Schwab Investor Profile Questionnaire,289–290Chartered Financial Analysts (CFAs), 16, 240checking accountsas cash equivalent, 13money market mutual funds as, 92, 96overview, 87–88check-writing fees (brokers), 334Chicago Board Options Exchange, 130Index497

Ciena, 364Ciesielski, Jack, 312closed-end funds, 226, 227–228, 238–240closing date (stock dividends), 116CMA (comparative market analysis), 468CNBC website, 305CNN Money website, 305Coca-Cola, 393combined rate (I bonds), 199commercial property, 452–453, 488–489commissionsbond funds, 227, 232mutual funds, 243, 256–261online brokers, 320company, researching. See researchingcompanycompany-based retirement plans, 59, 61, 80comparative market analysis (CMA), 468competition, improving profits and, 43composite rate (I bonds), 199compounded effective annual yield, 28compounding returnsextra percent, 36–37goals and, 37overview, 35condo hotels, 445–446condos, 449confirmation (trade execution), 344conservative investors, 131consumer credit, 55consumer debt, 72–73consumer publications, 127Consumer Reports, 126consumersconsumer debt, 72–73defined, 45fundamental analysis by, 370contrarians, 378Controls and procedures section (10-Q report),406convertibility (corporate bonds), 203–204498Investing All-in-One For Dummiesco-ops, 450core sales, 154corporate bondscallability, 203compared to Treasury bonds, 170, 202convertibility, 203–204credit ratings, 202–203overview, 174, 201volatility (risk), 204–205cost of living (rate of living), 46CoStar Group, 469costs. See also expensesdefined, 42executing trades, 350–351managing, 43mutual fundsloads, 256–261operating expenses, 261–263overview, 255–256coupon rate (bonds), 183, 195–196coupon yield (bonds), 188covered call writing, 129credit card debt, 72credit rating, 459crime rates (neighborhood), 486current yield (bonds), 189custodial accounts, 79custodians (mutual funds), 246customer service (online brokers), 321Ddate of declaration (stock dividends), 116, 117date of execution (stock dividends), 116date of record (stock dividends), 116, 117Day Last column (stock tables), 115“The Day of Reckoning” feature (60 Minutes),211day only orders, 351day traders, 384DCA (dollar cost averaging), 78–79

debit cards, 87–88, 95debtbalance sheet, 149consumer, 72–73mortgage, 75–76student loans, 74–75trade cycle, 371debt load, 147debt securities (fixed-income securities), 164deductible expensescompany-based retirement plans, 59IRAs, 61real estate investing, 431deep discountersCapital One Investing, 323, 325FolioInvesting, 324, 325Loyal3, 324, 325OptionsHouse, 324, 325Robinhood, 324, 325SogoTrade, 324, 325TradeKing, 324–325DEF 14/DEF 14A SEC forms, 312default, defined, 412default risk (agency bonds), 207defense stocks, 131defensive stocks, 131deferred loads (bond funds), 232, 260deflation, 201depreciationdefined, 29income tax and, 424real estate, 431undeveloped land, 454derivativesbalance sheet, 149–150mutual funds, 249Digg Reader aggregator, 310direct registration, 347disability insurance, 83, 434–435discount bonds, 182–183discount brokers. See also brokersBank of America, 326, 329Charles Schwab, 326–327, 329deep discounters, 323–325DittoTrade, 327E*TRADE, 327, 329Fidelity, 327, 329Motif Investing, 327–328MotifInvesting, 330mutual funds, 277–281Scottrade, 328, 330TD Ameritrade, 328, 330Vanguard, 329, 330Wells Fargo, 329, 330DittoTrade, 327Div column (stock tables), 112diversificationbond investing, 167–168defined, 9fundamental analysis and, 376income stocks, 138internationalization of bond market, 178market-value risk and, 21minimizing risk of individual investment, 25municipal bonds, 210–211mutual funds, 243–244real estate investing, 430dividend reinvestment plans (DRIPs), 131, 339dividends (stock investing)closing date (settlement date), 116date of declaration, 116, 117date of execution, 116date of record, 116, 117defined, 29ex-dividend date, 116, 117histories, 417–418income stocks, 130–131overview, 115payment date, 116, 117DJIA (Dow Jones Industrial Average), 122, 298Index499

Dodd, David, 393–394Dodge & Cox, 275dollar cost averaging (DCA), 78–79Dominion credit ratings service, 202donors, fundamental analysis by, 370dot-com bubble, 386, 396–397double-tax free municipal bonds, 212Dow Jones Industrial Average (DJIA), 122, 298downside risk (growth stocks), 127, 128DRIPs (dividend reinvestment plans), 131, 339due diligence, 384. See also researchingcompanyduration of bond, 195–196EE*TRADE, 15, 327, 329early-withdrawal penalties (CDs), 88earnings. See also P/E ratio; profitabilitydriving stock prices through, 42–43operational earnings, 156researching company, 146total earnings, 156earnings guidance, 405earnings multiple. See P/E ratioearnings per share (EPS), 154earnings press release, 404–405earnings season, 403–404ECNs (electronic communications networks),348economic analysis, 391economic concepts (stock investing)cause and effect, 105government actions, 105learning from past mistakes, 106–107supply and demand, 105economy, influence on stock investing, 109EDGAR (Electronic Data Gathering,Analysis, and Retrieval system), 118,414–416education/collegecosts, 56500Investing All-in-One For Dummieseducational savings account, 82investing money earmarked for college, 82overview, 79–81using home equity to pay for, 80EE bonds, 199efficient market theory, 44–45, 378egress (undeveloped land), 4558-K SEC form, 312, 404electronic communications networks (ECNs),348Electronic Data Gathering, Analysis, andRetrieval system (EDGAR), 118, 414–416electronic issue (Treasuries), 197electronic transfers (mutual funds), 95Embarcadero Small Cap Growth fund (VanWagoner Emerging Growth fund), 266–267emergency fund (personal-safety-net money),54, 73, 95–96emerging economies (emerging-marketnations), 33, 175employees, fundamental analysis by, 370encrypted data, 337Enron, 128entering trades, 351environmental issues (undeveloped land), 455EPS (earnings per share), 154equityasset allocation, 436balance sheet, 150, 379–380defined, 10trade cycle, 371equity capital, 412estate planning, 84ETFs (exchange-traded funds)advantages, 250–251brokers and, 14defined, 177, 226disadvantages, 251–253dividends, 131establishing position in, 228–229mutual funds versus, 236

ETNs (exchange-traded notes), 226, 229–230Euronext, 102excess liability (umbrella) insurance, 435exchange-traded funds. See ETFsexchange-traded notes (ETNs), 226, 229–230ex-dividend date (stock dividends), 116, 117executing tradescost, 350–351limit orders, 349market orders, 349overview, 348stop limit orders, 350stop market orders, 349–350trailing stops, 350expenses. See also costsdefined, 104income statement, 154–155mutual funds, 239, 261–263real estate investing, 431rental properties, 425–426eXtensive Business Reporting Language (XBRL),416Exxon Mobil (XOM), 148Fface amount (bonds), 164, 182–183Facebook, 307, 309FAFSA (Free Application for Federal StudentAid) application, 80, 81Fama, Eugene, 388Fannie Mae (Federal National MortgageAssociation), 170, 206favorites (bookmarks), 294FDIC (Federal Deposit Insurance Corporation)insurance, 30, 86, 90, 165The Fed (Federal Reserve). See Federal ReserveFederal Express, 123Federal Farm Credit Banks (FFCB) bonds,206–207Federal Home Loan Banks, 170, 206Federal Home Loan Mortgage Corporation(Freddie Mac), 170, 206federal marginal income tax rate, 65Federal National Mortgage Association (FannieMae), 170, 206Federal Reserve (The Fed)financial markets and, 47–48interest rates, 187money supply, 106tracking bonds and Treasuries, 301fee simple ownership, 450FeedDemon app, 309–310FFCB (Federal Farm Credit Banks) bonds,206–207Fidelity Growth Strategies fund, 265Fidelity Investments, 217, 221, 273–274, 280,327, 329FIFO (first-in-first-out) method, 68–69, 35152-week high column (stock tables), 11152-week low column (stock tables), 112financial advisorsfinding, 15–16minimizing risk of individual investment, 25National Association of Personal FinancialAdvisors, 219financial assets (balance sheet), 149financial consultants, 246. See also brokersfinancial data, obtainingaccounting, 410–413financing activities, 411–412investing activities, 411operating activities, 411overview, 410percentage change, 413annual report, 408–409dividend histories, 417–418earnings press release, 404–405earnings season, 403–404EDGAR database, 414–416entering into spreadsheets, 416–417financial reporting rules, 402–403Index501

financial data, obtaining (continued)overview, 401proxy statement, 409–410stock-split information, 418–41910-K report, 407–40810-Q report, 405–407Financial Industry Regulatory Authority (FINRA),214, 232, 335financial intermediaries (mutual funds), 238financial markets. See also bond investing; stockinvestingdriving stock prices through earnings, 42–43efficient market hypothesis, 44–45Federal Reserve and, 47–48how companies raise money through, 39–42inflation, 46–47interest rates, 45–46quantitative easing, 48–50financial models, 375financial newsresearching company, 108researching industry, 109resources, 108role of economy, 109role of politics, 109–110role of social trends, 110financial performance (fundamental analysis),360financial planningassessing savings rate, 77–78dollar cost averaging, 78–79education/collegecosts, 56educational savings account, 82investing money earmarked for college, 82overview, 79–81using home equity to pay for, 80emergency fund, 73financial planners, 219insurance, 83–84investment options, 76–77502Investing All-in-One For Dummiesmanaging debthigh-cost consumer debt, 72–73mortgage, 75–76student loans, 74–75overview, 71financial ratiosfundamental analysis, 363, 380–381, 391liquidity ratios, 381operating performance ratios, 381return on investment, 381valuation ratios, 381financial reporting rules, 402–403financial resources (fundamental analysis),360financial statements (fundamental analysis),391Financial statements section (10-Q report),406financial supermarkets,discount brokersBank of America, 326, 329Charles Schwab, 326–327, 329deep discounters, 323–325DittoTrade, 327E*TRADE, 327, 329Fidelity, 327, 329Motif Investing, 327–328MotifInvesting, 330mutual funds, 277–281Scottrade, 328, 330TD Ameritrade, 328, 330Vanguard, 329, 330Wells Fargo, 329, 330mutual funds, 277–281pricing, 217Vanguard, 329, 330Financial Times website, 305financial websitesBarron’s, 305BigCharts.com, 303Bing News, 302

Briefing.com, 302, 303CNBC, 305CNN Money, 305Financial Times, 305Google News, 302Investor’s Business Daily, 305MarketWatch, 302Motley Fool, 303Reuters, 303USA TODAY’s Money section, 304The Wall Street Journal Online, 305financing activities (fundamental analysis),411–412FINRA (Financial Industry Regulatory Authority),214, 232, 335FINRA BrokerCheck, 218firewallsbuilt-in, 314defined, 314router, 315third-party software, 315first-in-first-out (FIFO) method, 68–69, 351fiscal year, 404Fitch Ratings, 202529 savings plan, 193fixed-income investingbond portfolio, 173corporate bonds, 174inflation, 172municipal bonds, 174–175sovereign bonds, 175–176total returns, 191fixed-income investors, 367fixed-income securities (debt securities), 164flash crash, 349flipping bonds, 214FolioInvesting, 324, 325Fontanills, George A., 129Footnoted.org, 312Footnotes section (10-Q report), 406Ford Motor company, 358Form ADV (Uniform Application for InvestmentAdviser Registration), 16forward P/E ratio, 15714A (proxy statements), 409–410Freddie Mac (Federal Home Loan MortgageCorporation), 170, 206Free Application for Federal Student Aid(FAFSA) application, 80, 81free trades, 330–331FreeStockCharts.com, 298French, Kenneth, 388full-service brokers, 222, 320, 331–334fund managers, 240–241, 269fundamental analysisanalysts versus accountants, 369avoiding overconfidence, 400balance sheet, 362, 379benefits of, 356–357by board members, 370buy-and-hold strategies and, 398–399cash flow, 362, 380compared to gambling, 366–368by consumers, 370difficulty level, 375by donors, 370economic analysis, 391by employees, 370financial performance, 360financial ratios, 363, 380–381, 391financial resources, 360financial statements, 391following the money, 371–372GM example, 357–359ignoring fundamentals, 364income statement, 362, 379index investing versus, 372–373index investors and, 384, 386–387industry analysis, 391by lenders, 370Index503

fundamental analysis (continued)macro trends, 361management team, 360market bubbles, 396–397market value, 395–396by mutual fund investors, 370obtaining financial dataaccounting, 410–413annual report, 408–409dividend histories, 417–418earnings press release, 404–405earnings season, 403–404EDGAR database, 414–416entering into spreadsheets, 416–417financial reporting rules, 402–403overview, 401proxy statement, 409–410stock-split information, 418–41910-K report, 407–40810-Q report, 405–407overpaying for stock, 388–389overview, 355–356, 365–366, 383–384passive investing and, 399–400profitability of, 377–378risks of, 376short-term volatility, 389–390signals to buy/sell, 363–364by stock investors, 369story stocks, 397–398technical analysis versus, 373–374technical analysts and, 384, 388understanding company worth, 368–369value investing, 360, 393–394value investors and, 144–147, 384value-priced stocks, 385–386Warren Buffett Way, 391–393when choosing growth stocks, 123–124Fundamental Analysis For Dummies (Krantz),375, 416fundamentals (company), 144futures market, 300504Investing All-in-One For DummiesGgains tax exemption, 440GDP (Gross domestic product), 109Genovese, Chris, 229Ginnie Mae (Government National MortgageAssociation), 170GM company, 148goalsretirement accountsannuities, 61–62company-based, 59, 61concerns, 57–58overview, 56–57Retirement Income Calculator, 60selecting, 62taking advantage of, 58–59returns and, 37short-termeducation costs, 56emergency fund, 54investing in small business, 55overview, 53–54purchasing home, 55saving for large purchases, 54–55Goldman Sachs, 331good-till-canceled (GTC) order, 128, 351Google, 313, 402–403Google Finance website, 298Google News, 302government actionslocal real estate market and, 484–485stock investing and, 105Government National Mortgage Association(Ginnie Mae), 170government-sponsored enterprises (GSEs), 170,206Graham, Benjamin, 121, 390, 393–394grants, 80Gross domestic product (GDP), 109gross salesdefined, 42

income statement, 153, 154percentage change, 413growth stockschoosingattention of analysts, 126company with strong niche, 123comparing company growth to industrygrowth, 122–123consumer publications, 127evaluating company management, 124–126fundamental analysis, 123–124institutional buying, 126lessons from history, 127–128megatrends, 121–122minimizing downside risk, 127, 128newsletter recommendations, 126overview, 121–122index investors and, 386–387overview, 119–120value-oriented growth investor, 120–121value-priced stocks versus, 385GSEs (government-sponsored enterprises), 170,206GTC (good-till-canceled) order, 128, 351HHagstrom, Robert G., 391HDV (iShares Core High Dividend ETF), 131health insurance, 434health savings accounts (HSAs), 65Heebner, Ken, 264–265hidden fees (brokers), 332–334high barriers to entry, 123High-Level Investing For Dummies (Mladjenovic),129–130high-yield (junk) bonds, 138, 166, 168–169, 204historic buildings, 432A History of Interest Rates (Homer and Sylla), 179holding investmentsdirect registration, 347paper certificate ownership, 346–347street name ownership, 344–345Home Buying For Dummies (Tyson and Brown),440home equityas real estate investing resource, 462–463using for education expenses, 80home ownership, 440–442, 486–487homeowner’s insurance, 435Homer, Sidney, 179Hotspot Shield, 337Hotspot.vpn, 337housing bubble, 396HSAs (health savings accounts), 65II bonds, 199IBM, 393Icarra, 317illiquiditydefined, 211real estate, 429inactivity fees (brokers), 333income, defined, 104income investors, 115income statementfundamental analysis, 362, 379researching companyexpenses, 154–155net profit, 155–156overview, 146, 152–153sales, 154income stocksadvantages of, 131–132choosing, 134–135company’s bond rating, 137–138disadvantages of, 132–133diversifying, 138dividends and dividend rates, 130Index505

income stocks (continued)overview, 129–130payout ratio, 137real estate investment trusts, 139–140royalty trusts, 141suitability of, 131utilities, 139yields, 135–136income taxesfederal marginal income tax rate, 65real estate investing and, 424indemnity bonds, 347index funds, 66, 177, 290Index Funds Advisors Risk Capacity Survey, 289index investing, 372–373index investors, 384, 386–387indirect (overhead) costs, 371individual bondsbond dealers, 215–216brokers/agents, 217–218choosing, 171financial planner, 219laddering, 222–224online trading, 218–222overview, 213–214purchasing, 217transparency, 214–215Individual Retirement Accounts. See IRAsindividual-investment risk, 24–25industry analysis, 109, 391industry growth, 122–123inflationbonds, 187–188financial markets and, 46–47income stocks and, 133taxes and, 12inflation-risk premium (bonds), 187InfoSpace, 364ingress (undeveloped land), 455initial public offerings (IPOs), 41–42, 331, 412506Investing All-in-One For Dummiesinside information, 369insider buying, 126installment sales, 432institutional buying (growth stocks), 126insurancebonds, 185disability, 83, 434–435excess liability, 435FDIC, 30, 86, 90, 165health, 434homeowner’s, 435liability, 83life, 83, 435, 464major medical, 83private mortgage insurance, 461intangible assets, 145interest/interest ratesbondscalculating rates of return, 180–182effect of interest rates on bond value, 186–187fixed-income securities, 164individual bonds, 223–224maturities, 165measuring volatility, 194–196overview, 179–180researching, 182–188total return, 191–194yield, 188–191dividends versus, 130financial markets and, 45–46income stocks, 132money market mutual funds, 93mutual funds, 227student loans, 74yield, 28intermediate-term bonds, 165internationalization (bond market), 178intrinsic value, 145, 392inventory (balance sheet), 149inverse leveraged ETFs, 252

Investigate icon, 3investing. See also specific types of investingcash equivalents, 13–14defined, 8finding financial advisors, 15–16investing for income, 129lending investments, 11–13ownership investments, 8–11overview, 8–9real estate, 10–11stocks, 9–10selecting investment firm, 14–15Investing 101 at Investopedia, 316investing activities (fundamental analysis), 411investing for income. See income stocksInvesting Online Resource Center, 316Investing.com website, 108investment bankers, 41Investment Company Act of 1940, 242investment firms. See also brokers; discountbrokersE*Trade, 15Muriel Siebert, 15Scottrade, 15selecting, 14–15T. Rowe Price, 15TD Ameritrade, 15Vanguard, 15investment grade bond rating, 138investment horizon (real estate), 491–492investment return, 386investment returns. See also returnsinvestment-grade bonds, 166, 174, 184–185Investopedia Stock Simulator, 318investorsactive, 291–292American Association of Individual Investors,317day traders, 384fundamental analysis, 367index, 384, 386–387momentum, 384novice, 131passive, 290–291, 360value, 144–147, 384Investor’s Business Daily, 108, 110, 115, 305The Investor’s Clearinghouse, 316IPOs (initial public offerings), 41–42, 331, 412IRAs (Individual Retirement Accounts)overview, 61penalty free withdrawal, 55, 58Roth IRA, 61, 193Simplified Employee Pension-IndividualRetirement Accounts, 61iShares Core High Dividend ETF (HDV), 131issuersagency bonds, 205–206bonds, 165–166municipal bonds, 209–210JJ.D. Power, 334JDS Uniphase, 364Johnson, Edward C. II, 273Johnson, Edward C. III, 273junk (high-yield) bonds, 138, 166, 168–169, 204KKB Home, 396KeyNote, 334Krantz, Matt, 304, 330–331, 375, 416Lladdering (bonds)defined, 171interest rates, 223–224overview, 222–223time frame, 224Lambert, David, 209, 221large cap stock, 158Index507

large-profit investments, selling, 69–70Last10K.com website, 310leading economic indicators (LEI), 109Lehman Brothers, 174LEI (leading economic indicators), 109lenders, fundamental analysis by, 370lending investments, 11–13leverageleveraged ETFs, 252mutual funds, 242real estate, 428liabilitiesbalance sheet, 151, 379–380defined, 103monitoring, 360liability insurance, 83life insurance, 83, 435limit orders, 349liquidating assets, 412liquiditycorporate bonds, 201defined, 26real estate investing, 429–430liquidity ratios, 381Livermore, Jesse, 122loadsbond funds, 227, 232load funds, 243, 256–261online brokers, 320local real estate marketbarriers to entry, 479–484government factors, 484–485overview, 472–473retailers, 478supply and demand concept, 473–478transportation options, 478location (real estate investing)evaluating neighborhoodscommercial property, 488–489crime rates, 486508Investing All-in-One For Dummiespride of ownership, 486–487property knowledge sheets, 487–488schools, 485–486evaluating regionincome levels, 471–472job growth, 471–472overview, 469–470population growth, 470–471investigating local marketbarriers to entry, 479–484government factors, 484–485overview, 472–473retailers, 478supply and demand concept, 473–478transportation options, 478overview, 466–467LogMeInHamachi, 337London, Scott, 369long-term bonds, 165losses, handling, 70low-income housing, 432low-money-down loans, 461Loyal3 brokerage firm, 324, 325Lucent, 400Lynch, Peter, 119, 121Mmacro trends, 361maintenance fees (brokers), 332major medical health insurance, 83Malkiel, Burton, 44management (company)equity and earnings growth, 125–126fundamental analysis of, 360insider buying, 126return on equity, 124–125Management’s discussion and analysis (MD&A)(10-Q report), 406margin of safety, 393

market bubbles, 386, 396–397market capitalization (market cap)company size and, 387, 388fundamental analysis, 395–396researching company, 144–145market deal, 468market indexesAmex, 102DJIA, 122, 298NASDAQ, 102, 298, 402NYSE, 102, 402Russell 2000, 35, 299S&P 500, 35, 252, 298Wilshire 5000 Total Market, 299market orders, 349market value. See market capitalizationmarketab

after-tax returns, 29–30 agency bonds default risk, 207 defined, 170 evaluating government commitment, 206–207 issuers, 205–206 markups, 207 overview, 205 taxes, 207–208 yield, 207 agents individual bonds, 216–218 transfer agents, 339, 347 aggregators (RSS feeds), 310 Alcatel, 40