HOW TO BUY STOCKS: A Guide to Successful Investing by Louis Engel

HOW TO BUY STOCKS: A Guide to Successful Investing

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The advertising manager of a well-known brokerage house supplies the inexperienced investor with a basic handbook. The subtitle is- I feel- misleading, except in so far as understanding of terminology, procedure, and the hows and whys of the not-too-mysterious operation of the stock market is integral to successful investing. In final analysis, he presents the case for stocks vs bonds fairly cogently. But this is, presumably, incidental to his aim to give a brief course to prospective investors. He defines a host of terms,- common stocks, preferred stocks, par value, assets, new issues, dividends, venture capital. He discusses debentures, convertibles, mortgage bonds. He reviews the controls of the SEC, the Federal Reserve, the individual stock markets and exchanges. He then comes to the function of the broker, the operation of speculation, buying on margin, pyramiding, short selling. He explains how to follow the financial pages in the newspapers, how to relate news to rising and falling prices, how to interpret the indexes. He discusses formula investments, open end and closed and trusts. And- perhaps most valuable to the reader- he takes specific cases and outlines the type of investment balance to pursue.

Pub Date: April 13th, 1953
Publisher: Little, Brown