Break Down Your Money – How to Get Beyond the Noise to Profit in the Markets

<p>Foreword xi</p>
<p>Introduction xiii</p>
<p>Acknowledgments xv</p>
<p>PART I Be An Owner, Not an Employee 1</p>
<p>Chapter 1 To Market to Market, to Buy a . . . What? 3</p>
<p>So What Exactly Is the Stock Market? 3</p>
<p>Buy a Stock and Become a Restaurateur 7</p>
<p>Look to the Indexes for the Market Scoop 10</p>
<p>Wrap–Up 16</p>
<p>Chapter 2 The Lamborghini Murci&eacute;lago LP6 40 Roadster: A Lifetime of Dividends 19</p>
<p>The Derivation of Dividend 21</p>
<p>Dissecting a Dividend s Date 23</p>
<p>Rev the Engine with Some Ratios 25</p>
<p>Drive through the Financials 25</p>
<p>It′s All About the Little Things 26</p>
<p>Get To Know a DRIP (Dividend Reinvestment Program) 28</p>
<p>What′s a DRIP? 28</p>
<p>Of Course, the Company Benefits, Too 30</p>
<p>So How Do You Find a DRIP? 31</p>
<p>DRIP Downers 32</p>
<p>Wrap–Up 33</p>
<p>Chapter 3 Bond, James Bond 35</p>
<p>Bond with the Family 36</p>
<p>The Mature Bond 37</p>
<p>A Bond′s Yield 38</p>
<p>Wrap–Up 39</p>
<p>Chapter 4 Mutual Funds and ETFs: For Folks on the Go 41</p>
<p>Mutual Funds: Funds for Kegs 41</p>
<p>Mixing in Exchange–Traded Funds 53</p>
<p>Wrap–Up 59</p>
<p>PART II Look under the Hood 61</p>
<p>Chapter 5 Navigating the Financial Statement: Your "Just Get to the Good Stuff" Guide 63</p>
<p>Find the Financials (Hint: They re in the Annual Report) 64</p>
<p>Where to Begin 66</p>
<p>Wrap–Up 68</p>
<p>Chapter 6 Auditing Your Potential Investment 69</p>
<p>Open the Company Checkbook: The Balance Sheet 69</p>
<p>Check the Company Report Card: The Income Statement 77</p>
<p>Wrap–Up 85</p>
<p>Chapter 7 Cash Is the Real Deal. Earnings Reports Are Not. 87</p>
<p>Find Your Two Dollars on the Cash Flow Statement 87</p>
<p>Earnings Release: The Ultimate Optimist 93</p>
<p>Wrap–Up 99</p>
<p>Chapter 8 Breakfast with the Federal Reserve: Getting the Economic Porridge "Just Right" 101</p>
<p>Where Did the Fed Come from and Why Do We Need It? 102</p>
<p>Inflation: Bad for the Porridge and the Economy 103</p>
<p>Recession: Bad for Your Hairline and the Economy 104</p>
<p>How the Fed Keeps the Porridge "Just Right" 106</p>
<p>Adjusting Interest Rates: The Long, Slow Simmer 108</p>
<p>Testing the Porridge 113</p>
<p>Wrap–Up 115</p>
<p>PART III Decisions, Decisions 117</p>
<p>Chapter 9 Will You Still Love Me Tomorrow?: Growth, Value, and Momentum Stocks 119</p>
<p>Growth Stocks: Hidden Gems 120</p>
<p>Value Stocks: Till Death Do Us Part 122</p>
<p>Momentum Stocks: One Night Stands 123</p>
<p>Wrap–Up 125</p>
<p>Chapter 10 Evaluating Cars and Stocks 127</p>
<p>Price–to–Earnings Ratio 127</p>
<p>Price–to–Book Ratio 130</p>
<p>Growth Rate 132</p>
<p>Knowing What s Important: A Case–by–Case Decision 135</p>
<p>Hard to Get Good Help 136</p>
<p>Wrap–Up 136</p>
<p>Chapter 11 The Ins and Outs of IPOs 139</p>
<p>Pop Goes the IPO 140</p>
<p>A Beneficial Blow 143</p>
<p>Knowing When to Make the Move from Public to Private 146</p>
<p>Take That IPO on the Road 147</p>
<p>Sorting through the S–1 149</p>
<p>Getting a Ticket to the Hottest Party in Town 152</p>
<p>Leave the Stock, Take the Fund 156</p>
<p>Wrap–Up 157</p>
<p>Chapter 12 Options and Futures 159</p>
<p>An Introduction to Options 159</p>
<p>Check the Expiration Date: Options Expiration Week 165</p>
<p>Use the Futures Market to Foresee Market 167</p>
<p>Wrap–Up 172</p>
<p>Chapter 13 Bringing It All Together 175</p>
<p>1. Be Specific about Your Goals 176</p>
<p>2. Spread the Risk Around 176</p>
<p>3. Don t Marry Your Holdings 179</p>
<p>4. Do Your Homework 181</p>
<p>5. Don′t Forget to Pay Uncle Sam 184</p>
<p>Wrap–Up 186</p>
<p>Appendix 189</p>
<p>About the Author 193</p>
<p>Index 195</p>