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Trade Facts

Trade facts and facts about trades, from the Random Facts shelf.

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Investing facts, tip about hot stocks

The price of hot stocks like IPOs and tech stocks can rise and fall suddenly.

"In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly."

"To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. "

The difference between stocks, bonds, and commodities

Stock: The shares of a company or corporation.
Bonds: A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Commodities: an article of trade or commerce, esp. a product as distinguished from a service.

While bonds generally promise a fixed return, earnings on commodities and stocks go up and down as determined by the free market.