Your Questions About How To Pick Stocks

David asks…

What determines whether a stock price goes up and down? What are the principles there?

I’m a business student but I still can’t grasp how prices go up and down in the stock market. I’m trying to learn through stock market games but to pick a winning stock is just hard if I can’t have a fundamental analysis to choosing a winning stock. Hope the business minded people can help! thanks!

John answers:

On the simplest level if you have more buyers than sellers the price will go up and an excess of sellers will bring the price down. This will explain both short and long term movements. A shift in the balance between buyers and sellers could occur for almost any conceivable reason.

Laura asks…

Is it easy to invest in stocks in Japanese companies as it is to invest in Us companies?

I notice most of my stock holdings are US companies, as picked by my stock broker. Could I just as easily invest in Nissan as I can in Ford, for example.
I live in the US.

John answers:

Only American companies are listed directly on the exchanges, so you will be looking for an ADR (American Depository Receipt).

What Does Sponsored ADR Mean?
An American depositary receipt (ADR) that is issued in co-operation with the underlying foreign company whose equity shares will underly the ADR shares. With the corporation’s sponsorship, the ADRs created in the issue usually afford their owners the same rights normally given to stockholders, such as voting rights.

Investopedia explains Sponsored ADR
For an ADR issue to become listed and trade on a major U.S. Exchange, it must be sponsored by the underlying corporation. If not, the ADR issue is likely to be traded over the counter.

Ken asks…

Is there a benefit to having a financial planner handle your investments?

I have heard that you can often avoid the standard fees/loads associated with institutional mutual funds if you go through a financial advisor/planner. Is this generally true, or is it the exception? Also, are there any other ways to avoid those fees/loads? I am trying to decide if it is worth having my financial planner get 1% of my assets even though I am perfectly adept at doing the research and picking funds/stocks myself.

John answers:

You are trying to have your cake and eat it. Eiether do it yourself or pay somebody to do it.

Sharon asks…

What stocks will grow in 40 years?

its for my homework. i have to pick a stock with having 100,000 dollars to invest in.

John answers:

Oil… Oil …oil…and oil…

Michael asks…

Which stock should I use glossy or matte?

I’m planning to get a set of brochures for my start-up business, I don’t know which paper type should I use. Should I go for Matte or pick a glossy stock?

John answers:

It’s really a matter of preference to be honest. On one hand a glossy stock can look nice and shiny but in an environment with mupltiple light sources the glare can be a bit much and take away from the overall presentation of the brochure. On the other hand I find that matte stock is nice when you use images that have a lot of detail in them. For me if you have something with a lot of text and lighter colors I would go with the glossy (depending on the lighting again). If you have something with a lot of images and dark colors I would choose the matte.

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