Download The Irwin Guide to Stocks, Bonds, Futures, and Options by K. Thomas Liaw PDF

By K. Thomas Liaw

This paintings goals to provide a entire consultant to investments and their markets. The authors current a latest examine all the significant funding securities, items, rules, and the technical features of issuing, buying and selling, clearing, regualtions, principles and taxes. This paintings doesn't specialise in "get-rich-quick" schemes, nor does it be aware of computational instruments utilized in safeguard research. really, this reference covers every little thing from a common evaluate of the securities markets to the buying and selling mechanics and buying and selling sorts of inventory choice and treasury securities. Liaw and Moy additionally clarify the variations among person and institutional funding goals, asset place and portfolio administration concerns, and SEC laws.

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For example, a married couple with $2 million in assets in 2006 will be able to bequest the entire amount, free of estate taxes, if a proper estate plan is drawn up. However, if the couple neglects estate planning, as much as $1 million would be subject to estate taxes when the surviving spouse passes away. Investors with substantial wealth can reduce the size of their estates and hence the amount of estate tax that is paid through a number of lifetime gifting programs. Current tax law allows individuals to give $10,000 per year to as many other individuals as they please without incurring gift taxes.

TaxesPlan assets are exempt from taxes. Laws and regulationsPension plans are governed by ERISA. < previous page page_33 next page > < previous page page_34 next page > Page 34 Unique preferences and circumstancescould include an increase in the number of retirees due to forced or early retirement. Insurance Companies The investment objectives of insurance companies depend on whether they are life or nonlife insurers. Life insurance companies tend to have longerterm, more predictable cash outflows than nonlife insurers.

Chapters 7 through 11 discuss the many investment vehicles available to investors. Once investors decide how to allocate their assets, they can choose how to implement their strategy. They can purchase individual securities to create their portfolio, or they can purchase a pool of investments through mutual funds or dosed-end funds. Chapter 12 discusses the mutual funds industry. Chapter 13 discusses closed-end investment companies such as real estate investment trusts and country funds. These types of funds can be used to manage an individual's entire portfolio or can be used as the foundation of a broader investment program.

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