'The most damaging half truth for savers is “performance matters more than expenses”. Read this book carefully and the financial services industry will have one fewer easy victim, but you will have a sound base for a lifetime of successful investment.'
Martin White, Chair of UK Shareholders Association
This is one of those great big books to buy and then tuck away for constant reference. It's a tour through everything from managing a portfolio to establishing a fair intrinsic value for a share. If it moves in the world of investing, it’s probably here.'
David Stevenson, 'Adventurous Investor' in the Financial Times
‘Informative and easy to read, Glen Arnold has produced arguably the most comprehensive book there is today on stock market investing and one that unquestionably will give an edge to any retail investor. This is a must read for anyone serious about investing.'
Simon Thompson, Companies Editor, Investors Chronicle
The Financial Times Guide to Investing is the definitive introduction to the art of successful stock market investing. Bestselling author Glen Arnold takes you from the basics of what investors do and why companies need them through to the practicalities of buying and selling shares and how to make the most from your money. He describes different types of investment vehicles and advises you on how to be successful at picking companies, understanding their accounts, managing a sophisticated portfolio, measuring performance and risk and setting up an investment club.
The third edition of this investing classic will give you everything you need to choose your shares with skill and confidence. Thoroughly updated, this edition now includes:
- Comprehensive advice about unit trusts and other collective investments
- A brand new section on dividend payments and what to watch out for
- An expanded jargon-busting glossary to demystify those complex phrases and concepts
- Recent Financial Times articles and tables to illustrate and expand on case studies and examples
- Detailed updates of changes to tax rates and legislation as well as increases in ISA allowances and revisions to capital gains tax
Table of Contents
- Title page
- About the author
- Publisher’s acknowledgements
- What’s new in the third edition
part 1 Investment basics
1 What is investment?
- Limited liability
- Ordinary shares and extraordinary returns
- Shareholder rights
- A money-making machine
- Dividends and retained earnings
- What if I want to sell?
- Primary and secondary markets
- Capital structure
- Stocks and shares
- Rights issues
- Financial institutions
- Be proud to be a capitalist!
- A note of warning – investment and speculation
- 2 The rewards of investment
3 Stock markets
- What is a stock market?
- Brokers and market makers
- Pricing – good old supply and demand
- A short history of the London Stock Exchange
- ‘Big Bang’
- The international scene
- Variety of securities traded
- LSE’s primary market
- The secondary market
- The Main Market (The Official List)
- The Alternative Investment Market
- techMARK and techMARK mediscience
- ICAP Securities & Derivatives Exchange (ISDX)
- Who owns UK shares?
- The role of stock exchanges
- Useful websites
4 Buying and selling shares
- Stockbroker services
- Choosing a stockbroker
- Finding prices and other information
- Getting the most out of financial websites
- What happens when I buy or sell shares?
- An alternative mechanism
- A third trading system – SETSqx
- What happens after dealing?
- Ways of paying for your shares
- Internet dealing
- Direct market access
- Transferring shares without brokers
- Useful websites for further reading
- 1 What is investment?
part 2 The investment spectrum
- 5 Pooled investments
- 6 Bonds
- 7 Unusual share investments
- What is a derivative?
- What is an option?
- Share options
- Call option holders (call option buyers)
- Call option writers
- An example of an option writing strategy
- LIFFE share options
- Put options
- How to trade options
- Using share options to reduce risk: hedging
- Using options to reduce losses
- Index options
- Further reading
- 9 Futures
- 10 pread betting, contracts for difference and warrants
part 3 Company analysis
11 Company accounts
- Oh no! Not numbers again!
- How to obtain reports
- The report and accounts
- Profit and loss account
- Balance sheet (statement of financial position)
- Cash flow statement
- Chairman’s statement
- Chief executive’s review
- Financial review
- Directors’ report and business review
- Auditors’ report
- Five-year summary
- Trading statements
- Further reading
- 12 Key investment ratios and measures
- 13 Tricks of the accounting trade
- 14 Analysing industries
- 15 The competitive position of the firm
- 11 Company accounts
part 4 Managing your portfolio
- 16 Companies issuing shares
- 17 Taxation and investors
- 18 Mergers and takeovers
- 19 Investor protection
- 20 Measuring performance: indices and risk
- 21 Investment clubs
- Title: The Financial Times Guide to Investing, 3rd Edition
- Release date: September 2014
- Publisher(s): FT Publishing International
- ISBN: 9781292005164