What Are Warrants in Stocks – Easy Step by Step Guide

Warrants in stocks, also known as stock warrants, allows you to buy a company’s stock down the road at a fixed price and date. This means that even if the company’s share price is higher as at the time you are buying, it does not affect your investment. 

However, this doesn’t entirely guarantee you a profit as you can lose if the company’s shares trade lower than the strike price. So, what are warrants in stocks? How do stock warrants work? What makes them different from other financial derivatives? All these and more you’ll find answers to in this article.

How Do Stock Warrants Work ?

Financial instruments provide investment opportunities that investors can leverage to increase their portfolio and earning power.

The most common of them include bonds, options, mutual funds, amongst others. However, there is another viable alternative that many are probably yet to discover.

What Are Warrants in Stocks - Easy Step by Step Guide  - Picture of a stock warrant
Stock Warrant Example

A warrant in stock is a contract between an investor and a company that gives the investor the right to acquire a company’s stock at a specific price and date. 

Warrants are a company’s way of enticing well-to-do investors to buy the company’s shares, offering them a better stance during an uptrend in the company in the future. At other times, it can be an incentive to outstanding employees in the company.

Practically, as a warrant stockholder, you can buy the stock later on at the warrant’s “strike price” (the agreed-upon price) which may be lower than the current stock trading price. Another great benefit warrant stock offers you is the opportunity to buy newly issued stock from the company that issued the warrant. 

More so, though it comes with a fixed date (after which it expires), you enjoy the privilege of making the stock warrant purchase at a later date. However, you will have to do that through common stocks and if they decide to.

You should know that there is no smoke without a fire. Warrant stock is a strategy companies use to attract investors to purchase shares so that they can gain from the investment. Also, a warrant does not grant you ownership of the stock, rather, it’s a right to gain the company’s share in the future for a particular price. 

In addition, a stock warrant loses its value and is no longer valid when it expires. Hence, you need to use; either buy or sell before the expiry date. For more on the definition of warrant in stocks, watch this video.

What Makes Up a Stock Warrant?

Let’s point out the components of a stock warrant. Here’s what’s inside the financial instrument:

  • An Up-Front Notice: In any stock warrant contract, the recipient can tell the company when he (she) will exercise their right; purchase the underlying stock. 

The company that offered the stock warrant, on getting the purchase notice, will issue new stock shares. This is to increase the number of shares its stock will trade. And, the outcome will be an increment in the company’s total shares of stock, which can reduce the price of the stock.

  • The Pricing Process: Once a company issues a new bond offering, the next thing it does is to declare a stock warrant strike (otherwise called the exercise price).
  • The Expiration Date: Any stock warrant comes with an expiration date, which is listed on the contract.

Why Do Companies Issue Stock Warrants?

Companies issue warrants for a lot of reasons. This could be to raise capital by attracting investors, retaining employees, or offset the impending risk of huge losses.

When it’s to raise capital or counteract impending risks, the company usually publicizes its warrants in the open market to attract individual and institutional investors. Given the massive buying power of institutional investors, they influence the market with their big purchases. Therefore helping to actualize big capital revenue for the company.

Also, when it’s to retain employees, they normally put restrictions on when these warrants can be exercised. Therefore, employees have to wait out a few years before claiming their benefits. You can learn more about why companies issue stock warrants here in this video

Types of Stock Warrants

Stock warrants have diverse types, and they include:

Puttable Warrants

Here, you have a proportion of shares you can resell back to the company at a fixed price especially to obtain your accumulated profits. It has a deadline.

Callable Warrants

You can purchase a certain amount of shares from a company using a callable warrant. This is an authorized warrant that has a deadline.

Covered Warrants

Covered warrants allow you to buy or sell equity, currencies, and financial tools issued from giant financial institutions, not from individual companies. 

Naked Warrants

With naked warrants, you can exercise flexibility as a shareholder. A naked warrant entitles you to exchange your warrant for security, that is to say, you are not tied to a preferred stock or bond.

Wedded Warrants 

As the name implies, it works closely with bonds. You can’t buy and sell it independently, rather, together with bonds.  

Traditional Warrants

Just like the wedded warrant, you can also purchase a traditional warrant with bonds but you can sell them separately in the secondary market.

Examples of Stock Warrants – American vs European

What Are Warrants in Stocks - Easy Step by Step Guide - Warrant to Purchase Common Stock
SemGroup Stock Warrant

Here is an example of how a stock warrant applies in the  USA and Europe:

Say that XYZ Corp. wants to issue a series of stock warrants to new employees, It could structure its warrants as follows:

American-style of Stock Warrants

The warrant for 5,000 shares of XYZ Corp. stock is at the strike price of $30 within five years of expiration. This stock warrant offers you the right, but not the obligation, to buy up to 5,000 shares of XYZ Corp. for $30 per share. 

This is to say that even if the stock is selling for $80 per share, you can still buy it at $30 per share. The more the stock’s price surges, the more valuable this warrant becomes for you. 

And, you can exercise this right at any time within the five years duration. Beyond that, the warrant expires and becomes useless.

European-style of Stock Warrants

Warrant for 5,000 shares of XYZ stock at $100 strike price on July 1. This warrant bestows on you the right, but not the obligation, to sell up all your shares back to the corporation for $100 per share. 

This means that the company re-buys from you at the same rate they sold to you even if the stock is worth $20 per share. Hence, as the stock plummets, the more valuable this warrant becomes for you. 

Since this is a European-style warrant, you can only exercise it on July 1. Before that date, it has not yet matured, while afterward, it has expired.

Companies hardly issue puttable warrants, because when they do so, they would be trading against their own stock. Therefore, you must navigate through a lot of legal, ethical, and cultural issues during any put warrant issuance.

Whenever a company auctions stock warrants, it will also issue the warrant with a price set per share. So, for instance, a stock warrant of 1,000 shares sold at $5, equals $5 per share, or $5,000.

How Do Stock Warrants Work? 

Typically, a warrant acts as bait for companies, to attract investors to buy the company’s shares. They give you the privilege to take advantage of a rising market, where you get greater percentage gains on your shares, compared to common shares. 

Let’s consider the warrant of an imaginary company, Gladstone Energy. Each Gladstone warrant, which trades on the TSX but in U.S dollars, gives the holder the right to buy one common share at   $38.20 (U.S.) until Sep. 22, 2021. The warrants were recently sold for $25.65, and the common shares at $52.50.

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Buying the warrant when you don’t foresee an increase in stock price may not be the best decision. At this point, it costs more to purchase the warrant ($25.65) and exercise it ($38.20) when compared to the current price of the stock. Though if you expect a price rise, then the warrant is valuable. 

A general rule for rating how promising a warrant is will be to evaluate its worth per share per adventure share price doubled. Assume that Gladstone doubled to $105, the warrant will skyrocket to $66.8 (the share price less than the exercise price), and that’s a lot of gains.

There’s one thing you must know though. If Gladstone trades at $38.20 or less than that at the tail end of September 2020, the warrants are as good as nothing, they expire.

How to Buy Stock Warrants

Firstly, to buy a stock warrant, you should be able to differentiate it from the common stock. Common stock and stock warrant tickers are placed side by side in the exchange platform. But, there is a way to fish it out; the extra letter ticker. 

For instance, Gladstone Energy Inc. the common stock will trade with the ticker GLDSE while the warrant will use the ticker GLDSEW or GLDSEWS. This means that stock warrants have an extra “W” or” or “WS” symbol” symbol attached to their tickers.

Taxes on Stock Warrants

Stock warrants are taxable and their tax rate is different from that of common stock or stock options. The breaks that stock options enjoy such as employees’ tax preferential treatment are not applicable to warrant stock.

Let’s say the warrant you exercised is $15 per share to buy 100 shares of XYZ, and the warrant costs you $300. Your total investment is $1,800, and If the market price on the day of exercise is $50, the shares are worth $5,000 and the difference is $3,200 which is your profit.

That amount is seen as ordinary income, not a capital gain since you didn’t own the stock before exercising the warrants. You can always consult a tax expert to make sure you understand and follow relevant tax rules

Stock Warrants vs. Stock Options

Stock warrants and stock options are very identical, they are similar in features and benefits. Yet, each has its uniqueness, hence they differ in some ways.

Similarities

  • Both are investment/financial agreements that let an individual buy a particular company’s stock at a given price, within a given time. 
  • Each of them is specifically designed to offer investors the opportunity of making a profit on their investment. 
  • Both are traded widely on major financial exchanges such as the NYSE or the Nasdaq Stock Market.

Major Differences

  • Stock Warrants Are a Company’s Strategy For Raising Capital.

Unlike stock options, the major purpose companies issue stock warrants are to raise capital. On the flip side, stock options are ways investors can predict a company’s stock. Only the investors benefit from stock options.

  • Works With Different Times

For stock warrants, the investment window is wide open, it can last up to 5 years, and more in some cases. Stock options, on the other hand, can expire within days, weeks, or months. 

This is the reason investors often prefer stock options for short-term investment strategies. Stock warrants serve more for a long-term investment strategy.

  • The difference in taxation method

Tax rules for stock warrants and stock options differ. Taxation on stock warrants depends on the usage of warrants. Stock warrants often attract taxes when you exercise them.

You can learn more about stock warrants vs stock options in the video below.

Pros & Cons of Stock Warrants

Pros

  • Stock warrants possess high upside potential, offering you the opportunity to make huge profits.
  • Exercise dates are usually far, and this is beneficial to the investors. You have more chances of making a profit, unlike some alternatives like stock options which work with shorter periods.
  • Dividends can adjust strike price, and lessen it.

Cons

  • Risky due to volatility.
  • Availability of scant.
  • More complex than other similar options.

CONCLUSION

Warrants in stocks are a cost-effective trading instrument that allows you to earn a fortune. Yet, like all financial derivatives, they have elements of subtlety. Be sure to read in between lines and understand exactly how they work before you buy or sell them. 

You can contact a financial advisor to guide you through the processes involving a stock warrant. You can stay in touch at Successful Tradings to learn more about stock warrants and other such financial instruments..

What is a Stock Split – Easy Guide and Famous Examples

Virtually every company desires to attract as many investors as possible. The more investors you have, the more capital you can invest into the business, and the more profit you can generate. That is why the price and value of a company’s stocks matter a lot to them.

However, the worth of a company’s stocks increases as the company grows, and the increase reflects in the price of shares. Very high share prices mean that not every investor can afford the stocks. So, many companies engage in stock splits to keep their shares affordable to investors at different levels.

Here at Successfultradings, we’ll consider what a stock split is, how it works, famous examples, and every other thing you need about a stock split.

What is a Stock Split?

Simply put, a Stock Split refers to a company’s decision to divide its existing shares into more share units. With a stock split, you can increase the number of shares your company has without increasing the overall worth of the shares.

The general effect of a stock split is that it increases the number of a company’s shares outstanding and decreases the unit price of shares. In essence, the total value of a company in shares and the value of each stakeholder’s shares remain the same. 

The only changes after a stock split are the increase in the number of shares outstanding and the reduction in the price of shares. You can watch this video to learn more about stock splits.

How Does a Stock Split Work?

For a better understanding of what happens after a stock split, let us illustrate with some figures. 

Assume Company Z has a total of 100 shares outstanding at $60 each. That’s a total share value of $6,000. Also, say as an investor, you buy 20 units of shares of stocks from company Z; that’s a total stake of $1,200.

Now, let’s assume the company decides to do a “3-for-1” stock split, for instance. It means every share you have is divided into three units. So, while the company now has a total shares outstanding of 300 shares, you have a total of 60; that is 3 times the previous number of shares.

Remember that the total worth of the shares remains the same even after the stock split divides them into greater multiples. So, in this scenario, the 300 shares of the company will still be worth $6,000 and the 60 shares you have will still be worth $1,200.

However, notice that stock split reduces the unit price of shares. In our example, the new share price will then be $6,000 / 300; that is, $20. So, for every share of $60, you get 3 shares of $20 each after the split.

There are different ratios a company can apply to its stock split. The ratio tells you how many units a share will be split into. For instance, if a company does a “4-for-1” split, it means each share is divided into four units. The most common stock split ratios are 2-for-1, 3-for-1, and 3-for-2.

However, there are no limits to the ratio a company can apply. The major thing is that the total worth of the split shares must equal the original worth of the shares before it was split.

Below is a summary of common split ratios and how they work. Assume you have a share of company BG worth $1,000, and the company decides to split the stock. This table demonstrates the effects of the split under different ratios.

SPLIT RATIOPRICE BEFORE SPLITPRICE AFTER SPLIT
2-for-1$1,0001000/2 =  $500 each, total of 2 shares
3-for-1$1,0001000/3 = $333.3 each, total of 3 shares
4-for-1$1,0001000/4 = $250 each, total of 4 shares
5-for-1$1,0001000/5 = $200 each, total of 5 shares
N-for-1$1,0001000/N = $M each, total of N shares
Forward Stock Split Table Illustration

Why Do Companies Split Stock?

Although stock splits do not add any direct economic value to a company, several benefits make companies consider it. Some of the major reasons are:

  • To Make the Shares More Affordable

When the share price of a company becomes very high, it can scare away investors who are low on budget. It implies that only investors with high capital can afford the shares.

But when such a company splits its stock, the share price reduces without affecting its total value. As such, other investors can afford the stocks and the shares also have more potential to grow in value.

  • To Enhance Stock Liquidity

Stock splits increase the number of shares a company has in circulation. This is a plus for stock traders as it becomes easier to buy and sell the stock at moderate prices.

It means that trades with that stock can be executed much more quickly and without needing so much capital too. This gives day traders the ability to maximize sharp and short market movements to make quick profits.

  • To Spike Up Interest in a Company’s Stock

Most investors perceive stock splits as a sign that a company is doing well. So, when a company splits its stock, investors take it that the increase in price that warranted the split is a signal that investing in the company will be a profitable move.

Since investors love investing in companies that have prospects of high ROI, splitting stocks attracts more investors.

Also, the reduction in share price that results from stock splits attracts the attention of potential investors with lower capital. As more people become interested, the demand for the stock increases. The high demand in turn causes an increase in the price of the shares.

  • To Create Room For More Growth

Due to reduced share prices and more available shares outstanding, a company’s stocks become more accessible to investors at different levels. This means they can generate more capital to expand the company or invest in massive projects.

The reduced price also gives the shares more allowance to accommodate future increases in price and value.

Famous Examples of Stock Split

#1. Apple Stock Split 2020

One of the most popular stock splits in recent times is that of the giant tech company, Apple, in 2020. Apple announced its intentions to split its stock, AAPL, on July 31, 2020. The company stated that it was a move to make its shares accessible to a wider range of investors.

The AAPL split came after the company stocks recorded a high price of well above $400 for the very first time. The rise in value was not surprising though after the company reported a profit of over $11 billion and a revenue of close to $60 billion.

This most recent split by Apple was a “4-for-1”, meaning that each shareholder got four shares for every single share they hold. According to the reports, the split applied only to shareholders who held AAPL stocks as of August 24.

Before the August 2020 split, Apple shares sold for $499.23 at market closing on Friday, 28th August, 2020. The 4-to-1 split meant that the shares sold for about $127 after the split.

History of Apple’s Stock Splits

The 2020 stock split was the fifth time Apple split its stocks since its public inception in December 1980.

  • Their first split was on June 16, 1987, when the company split their stocks on a 2-for-1 split ratio.
  • On June 21, 2000, Apple had its second split which was also a 2-for-1 split.
  • This was followed by yet another 2-for-1 split in February 2005 as the company kept waxing stronger.
  • Then, the company had its biggest split in June 2014 which was a 7-for-1 split.

From rough estimations, Apple shares would have been selling for a sky-high $28,000 per share if they have had no slit stock throughout this timeframe.

How the Apple Stock Split Influenced the Stock Market

The Apple stock split of 2020 had its impact on one of the most popular stock indices; the Dow Jones Industrial Average (DJIA). If you’re knowledgeable in the stock market, this should not be a surprise to you given that Apple is a “blue-chip” company.

The Dow Jones Industrial Average is a price-weighted index. What it means is that the companies that constitute the index are ranked by the prices of their shares.

Before the split, Apple topped the rankings on the DJIA with its share price a little below $500. But after the split, the company was somewhere within the middle of the index table. Of course, this meant that the stock became more reachable to investors that follow the DJIA.

#2. Tesla Stock Split 2020

In the same August 2020, popular electric car company, Tesla, also split its stock in a 5-for-1 ratio. According to the press release, the split applied to every stockholder on record as of 21st August, 2020 and took effect from August 31, 2020.

Before the Tesla stock split, a share of Tesla stocks sold for about $2,213. But the split brought down the price per share of Tesla stocks to about $442.

However, there has been strong evidence of growth in the company’s value after the split. On a split-adjusted basis, the share price since the split was announced in August 2020 has risen to above $800. That’s close to 200% of the price as at the time of the split, and still well above the stock price of many companies.

Because of this increase, many people expect that Tesla might be up for another stock split pretty soon. Such projections are based on the fact that Tesla’s business is considerably doing well at the moment, and the share price is still relatively high. However, investors can only keep watching as the company has not made any indications in that regard.

Reverse Stock Split

Sometimes, companies also do stock splits to directly boost the price per share of their stocks. This type of stock split is known as a reverse stock split. Reverse stock splits works directly opposite the way forward splits work.

In a reverse stock split, multiple shares are combined to make one share. For instance, in a 1-for-5 reverse split, 5 shares combine to become one share. So, if you had 5 shares of $30 each, they will become one share worth $150 after a reverse stock split. 

Companies mostly do reverse stock splits when their price per share gets too low. Very low prices can affect a company’s stock performance in various ways.

First, it might put the company at the risk of getting delisted from an exchange when their share price gets below the minimum required price. This implies that it becomes harder to trade such stocks.

Again, if the share price of a company stays too low for a long time, it might be an indication of low growth potential. Of course, this is a turn-off for most investors. 

So, boosting the share price via a reverse stock split may help attract more investors. If you want to learn more about reverse stock split, this video might be a helpful resource.

Below is a summary of reverse stock split and the effect of different ratios on a company stock of $1,000 each.

NO OF SHARESWORTH BEFORE REVERSE SPLITREVERSE SPLIT RATIOOUTCOME OF REVERSE SPLIT
10$3001-for-101 share worth $300
50$5001-for-510 shares worth $50 each
10$501-for-52 shares worth $25 each
Example of Reverse stock Split Table

Impact of Fractional Shares on Stock Split

With the recent introduction of Fractional Shares trading on many platforms, it is reasonable to assume less and less companies will resort to stock splits as a way to attract new investors.

Nowadays, you could become an owner of NFLX fractional shares for less than the price of a movie ticket .

Or you could easily acquire fractional shares of AMZN for as little as what you pay for your yearly prime subscription.

This is makes it less likely that the big expensive stocks will risk diluting the value of the current shareholders.

Here is our full article on how to buy Fractional shares on Webull, one of the first brokers to offer this feature on a large scale of stocks.

CONCLUSION

Both forward and reverse stock splits do not affect the overall worth of a company’s shares outstanding. You can learn the differences between forward and reverse stock split here.

As an investor, you might need to watch out closely for the causes and implications of a stock split for your company of interest. This will help you make good investment decisions and stay on course for better returns on investments.

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Top 10 Best Investment Newsletters – Easy Step by Step Guide

One of the most important tools you need to succeed as an investor is the right information. To make well-informed investment decisions per time, you need to stay updated on the latest market trends and investment newsletters. And, you don’t just need the right investment information; you need to get it timely enough too.

This is where subscribing to investment newsletters comes in handy. Apart from providing useful information, some newsletters also offer tips and recommendations on the right investment moves for their users. We’ll show you the top 10 best investment newsletters you can trust for the investment information you need. 

Best Investment Newsletters – How Investment Newsletters Work

Investment newsletters primarily provide information about investment commodities such as stocks and their different markets. Most of these financial markets are driven and influenced by various kinds of information, and it might take some hard work to find these information. 

Investment newsletters make these important information handy to investors and everyone interested. So, if you subscribe to the right newsletter, you will minimize the stress of sourcing information by yourself.

While some newsletters offer information and services on various markets, many others focus on some particular niche. So, one newsletter may cover the stock, forex, and crypto markets, while another may just specialize in stocks.

What To Consider When Choosing an Investment Newsletter

To be sure you’re choosing a suitable newsletter, there are certain criteria you should have in mind. These factors include: 

#1. Suitable and Feasible Recommendations

Before you subscribe to any newsletter, find out the kind of services they offer and whether they match your investment goals. Do not just follow a newsletter because they seem good; ensure they’re suitable for your style. 

For instance, if you’re a short-term trader, it might not be useful to follow a newsletter that offers long-term trading tips, and vice versa. If you are trading with small capital, it might be risky to follow the investment recommendations of a newsletter for high capital investments.

#2. Trusted Success History

Virtually every investor desires to beat the market and earn high returns. To achieve that, look for newsletters that have a proven track record of success. They should not just tell you what to invest in; they should also tell you why, backed up with verified data and stats.

#3. Affordable and Profitable

Of course, you would not want to break the bank for newsletters. Look for the ones that offer great services at affordable rates. Check for transparency in pricing too, so you wouldn’t have to battle with hidden charges later.

Now, let’s consider the top 10 best investment newsletters and why each may be suitable for you.

Top 10 Investment Newsletters #1. The Motley Fool

To put it simply, the service presents you with some investment suggestions on a regular basis. Consequently, the purpose of this evaluation is to assess whether or not the stock adviser is a good investment of your money.

Perhaps the most notable thing about the Motley Fool is their tested and trusted long track for success. As state on their website, recommendations from the Motley Fool Stock Advisor have been beating the market since 2002.

Key Features of Motley Fool Stock Advisor

Once you become a member, you will have access to a wide range of tools. They will assist you in making informed investing decisions. For example, you will have access to a variety of current and historical top stocks that are worth investing in.

The average stock pick from the Stock Advisor has returned over 590% while the Rule Breakers have returned over 300%. This means both of them have outperformed the S&P 500 for some years now.

Investment Knowledge

The stock adviser members-only site is a swarm of activity, and it’s easy to see why. There is a wide selection of instructional information available on this page. It can assist you in making smarter financial decisions.

As you are well aware, education is a very vital component for any trader who wants to maintain their abilities.

It is easy to learn about new investing techniques while also obtaining ready-made stock recommendations through the Fool’s tools and resources.

Built-In Alerts and Stock Management Tools

Stock Advisor at Fool.com offers more than just investing advice; it also offers other services. 

And today, owing to the incredible power of contemporary technology, it is feasible to build a one-of-a-kind portfolio of equities if you join a mutual fund. On some websites, this portfolio means a watch list, which is a similar concept.

Collaborative Environment For Increased Productivity

This group is quite well-managed on the Stock Advisor website.

This may not be the busiest chatroom available on the market. But it surely attracts a reasonable amount of attention and participation.

Top 10 Best Investment Newsletters -Easy Step by Step Guide - The Motley Fool Stock Advisor
Motley Fool Stock Advisor Newsletter

How The Motley Fool Works

The Motley Fool provides information and recommendations on long-term investment ideas and strategies. They offer two popular newsletters: the Motley Fool Stock Advisor and the Rule Breakers.

The Motley Fool Stock Advisor recommends stocks of companies that are well established with proven results such as Tesla, Amazon, etc.

The Motley Fool Rule Breakers helps you identify stocks that have a high potential for future growth. It’s a long-term-based newsletter, so you can invest in those stocks and be sure you’re going to earn high returns in the long run.

Both packages showcase strong transparency too. They do not just show you their picks, they also provide factual reasons why they make the choices. And another perk is that you can reproduce their results by yourself.

Pricing

Both the Motley Fool Stock Advisor and the Motley Fool Rule Breakers cost $99 for the first year. That’s about $1.90 weekly, and that’s quite a fair price for the trusted high-quality service they offer.

If you find this newsletter attractive, you can watch the the video review below.

Motley Fool Stock Adviser Review

#2. Mindful Trader

Mindful Trader

The Mindful Trader is a short-term based investment newsletter that recommends daily stock picks based on data-driven analysis. The company owner, Eric, claims to have invested several years of research and cost to develop the strategy you can now trust.

This newsletter recommends day-trading which normally takes within 5 to 10 minutes to follow. They also offer short-term buy-and-hold investment ideas which usually last for a few days.

How Mindful Trader Works

The Mindful Trader releases about 3 to 5 ideas daily. The newsletter delivers its content to the users via mail. The mail usually contains the perspectives behind the content and the investment plan for each day.

The Mindful Trader also tries to keep a good level of transparency as the outcome of the stock picks since it started is displayed on the website.

Pricing

Access to the Mindful Trader Newsletter costs only $47 per month.

Best Investment Newsletters | #3. Finimize

Top 10 BestInvestment Nwsletters - Finimize

Finimize sends you short summaries of financial news in their top two stories of the day known as the Daily Brief.

The newsletter does not explicitly make you buy any particular stock. Rather, it provides you with information so you’ll be able to make your own decision.

The Daily Brief newsletter is usually not more than 500 words and is free.

However, if you subscribe to their premium plan,  you’ll have access to a more robust service. This service features advanced offers such as detailed daily reporting, premium meetup, an audio version of their content, and other perks.

Pricing

You can access the Finimize Daily Brief for free, but a subscription to the premium services costs a charge of $79.99 per year. You can have a taste of what to expect from the premium service through their free 7-day trial.

#4. Trade Ideas

Trade Ideas

The Strength Alerts index newsletter offered by Trade Ideas provides you with 5 new ideas for your trades every Sunday. They supply these trade ideas from their model portfolio using their advanced statistical analysis and high-performance algorithm.

One major benefit of this newsletter is that you will get the alerts for the trade delivered to you on Sunday ahead of a new trading week. The trading information they supply is based on the expert analysis of Michael Nauss, an experienced Chartered Market Technician.

They also provide a question and answer session where you can learn more about their services.

Pricing

The TI Strength Alerts index newsletter costs only $17 per month. The company also provides a free Trade for the Week newsletter for their subscribers. 

#5. Forbes

Top 10 Best Investment Newsletters - Forbes

Forbes newsletter has gained massive popularity and usage due to the wide range of services it offers. Since 2000, Fines Investor has reportedly performed three times better when compared to the S&P 500.

How Forbes Newsletter Works

Forbes does not offer a general investment newsletter. Rather, it divides its service into different categories such as stocks, Options, Funds and ETFs, Income and Safety, Economic Analysis, etc.

Each of these newsletter categories has an expert who writes them. So, it provides an easy way to leverage the expert knowledge of experienced investors and analysts. Another great benefit is that it allows you to choose and focus on your particular area of investment interest.

Pricing

The cost of the newsletter subscription varies with different categories. Different payment plans apply to different categories too. So, you can decide to subscribe quarterly, annually, monthly, etc., depending on what’s available for the category you want.

The pricing ranges from as low as $18 to as high as $995 depending on the payment plan. It also features the Forbes Elite Investor plan which costs around $499 monthly, $4,995 yearly, and $9,550 bi-annually.

#6. Nate’s Notes

Nate's Note

This is one of the most trusted newsletters due to its long years of consistent performance, dating back to its introduction in 1995. It is run by Nate Pile who was one of the earliest investors that recommended Apple stocks to investors way back in the ’90s. It is a very viable option for high-tech stock investors.

How Nate’s Notes Work

The newsletter takes a review of the biggest indexes in the stock market such as the DJIA (Dow Jones Industrial Average) and the S&P 500. It then shares ideas and recommendations based on this review.

Nate’s Notes also reviews the stocks featured in their model portfolio. The portfolio features a category of stocks with less volatile prices of shares. These stocks are known as the “core stocks” and Nate usually recommends investors to invest more in them.

Nate’s Notes usually advises investors to buy stock picks with higher growth potential relative to their prices. It refers to these stocks as “First Buys”. Also, the newsletters prescribe a “Strong Buy” price point for each portfolio – a buying point with the highest return potential.

Pricing

The Nate’s Notes newsletter subscription costs $289 per year.

#7. Fidelity Investor

Fidelity Investor

If you are interested in Fidelity Mutual Funds and mutual funds in general, this might be the best pick for you. The Fidelity Investor newsletter keeps you updated on what you need to know to become a profitable mutual funds investor.

How Fidelity Investor Works

The Fidelity Investor newsletter gives more attention and emphasis to the managers of the mutual funds instead of the mutual fund names. Fidelity mutual funds are actively managed, so the assessment of the manager matters a lot. The better the manager, the higher the chances of the mutual fund performing above the market.

Pricing

For the first 6 months, you’ll have to pay $34.95 to access the newsletter. Subsequently, the cost is $229 per year.

#8. Kiplinger

Top 10 Best Investment Newsletters - Kiplinger
Kiplinger Newsletter

Kiplinger is suitable for investors who love the conservative investment approach. It is the best for you if you want to engage in low-risk investments with moderate rates of return.

How Kiplinger Works

Kiplinger offers both a print magazine on personal finance and digital newsletters. The sectors that the services cover are investing, saving, wealth building, and taxes.

In keeping with its conservative investment style, Kiplinger offers a newsletter known as Kiplinger Investing for Income. This package aims at helping you earn between 4% to 6% cash yield on annual basis.

Pricing

The personal finance magazine, including both the digital and print versions, costs $29 yearly. You can also opt for a bi-annual subscription for $39 annually.

#9. AskFinny Newsletter

AskFinny

Learning about investments and financial analyses can be challenging sometimes. The complex nature of the information and calculations involved can be overwhelming, especially if you are a newbie. 

This is exactly what AskFinny seeks to solve for you, breaking down complex concepts into easy-to-understand terms. So, the newsletter is a perfect fit for investors who are looking to learn and do investing by themselves.

Main Features

The advantages and disadvantages of purchasing or selling individual stocks, exchange-traded funds, and mutual funds. 

Each analysis is accompanied by a Finny Score, which is not a suggestion to purchase or sell. But rather a visual depiction of the balance between the advantages and disadvantages of the subject matter.

Compare Stocks, ETFs, and Mutual Funds

A side-by-side comparison of two stocks, ETFs, or mutual funds of your choosing. Allowing you to compare important financial statistics such as historical performance, expense ratios, valuation, profitability, and other financial characteristics.

Alternatives and Comparables

It compiles a list of equities, exchange-traded funds, and/or mutual funds. They are comparable to the ones you are contemplating investing in.

Top Stocks

A compilation of the stocks that have made it onto “best of” lists. Organized into popular categories such as dividend stocks, bargain stocks, wealth generators, and so on.

How AskFinny Works

The AskFinny newsletter is also known as The Gist. The newsletter aims to help the subscribers become profitable investors by providing information on the latest trends on money and investments. Subscribers receive The Gist two times a week – every Tuesday and Thursday.

Apart from the newsletter, AskFinny also offers an app for stock analysis. The app provides answers to FAQs on finance, tools for stock investment research, and general investment guides.

Pricing

While the AskFinny app costs $8.33 per month, you can access the newsletter and other resources for free.

#10. Zack’s Profit From the Pro

Zacks Profit from the Pro

Zacks Profit From the Pro sends its subscribers timely information on notable market developments every morning. According to the website, there are over 800,000 subscribers who enjoy this offer. And, the most beautiful part of that this service is totally free.

As an added advantage, subscribers of this newsletter also get the renowned “Bull Stock of the Day” with a reputation of making as much as an average profit of 25.60% yearly.

Key Features

A large number of stock screening and backtesting tools are available on the market, each of which claims to be unique in some manner. This may cause you to question whether or not this specific service is appropriate for you.

In order for you to understand what it is suitable to provide, we will need to look at some of its most important characteristics.

Stock Screener

First and foremost, the major goal of this program was to make it as simple as possible for investors to identify the best companies with the greatest potential for long-term development. 

As a result, it revolves around a stock screener that includes hundreds of characteristics such as income statement components, dividends, earnings per share growth estimates, and many more.

Results of the Screener

As soon as the screener findings are presented, you have the option of going further and analyzing them with heatmaps and scatter plots.

The fact that the heatmaps are colored according to how the platform evaluates the stocks that show in your screener results is an important component of the heatmaps’ functionality. 

If only they had been coloured in accordance with your screen specifications, they might have been more useful in assisting you in the execution of your trading plan.

The Graphs and Diagrams

By utilizing the charting features of the platform, you may show virtually any essential data that you need. 

Some of the data elements that you may chart are your stock’s revenue, Net Margin, Return on Equity, Cash Flow, Earnings Per Share, Price to Earnings Ratio, and many more.

Pricing

This newsletter is absolutely free. However, subscribers can also pay to leverage other services from Zacks such as the Zacks Premium for $249 monthly, or the Zacks Mutual Fund Rank as depicted in the video below.

Other Top Investment Newsletters To Consider

Profitly by Tim Sykes

Top 10 Best Investment Newsletters - Profitly
Profitly Homepage

This newsletter made its way among the Top 10 Best Investment Newsletters.

A multi-package program called Profitly claims to train upcoming practices on the best practices for maximizing their winning streaks when trading volatile currencies and commodities. 

Profitly – a multi-package program designed to teach upcoming practices how to maximize their winning streaks when trading volatile currencies and commodities. 

Timothy Sykes and Michael Mosseri came up with the idea for the firm, which they founded. Timothy is the one who came up with the idea for the platform, inspired by his own trading experiences.

Key Features and Workings

Keep track of your trades

Profitly’s exclusive trade monitoring technology painstakingly records and tracks each and every one of your deals in minute detail. After you’ve accumulated a little amount of trading experience on Profitly, you’ll begin to see patterns forming in your trading history.

Traders’ Viewpoints

Taking the time to examine your trading history might provide you with valuable insights into your trading approach. 

With a little effort, you can discover your most effective trading strategies and develop your trading strategy around those skills. This information might also assist you in identifying and correcting errors.

Set up a connection with your brokerage account

Profitly is a subscription-based service, which means that you must pay a monthly charge in order to use it. Then you can start blasting your way to the top of the leaderboard by setting up a profile, connecting your brokerage accounts, and posting your trades.

Stansberry Research

Top 10 Best Investment Newsletters - Stansberry Research
Stansberry Research Homepage

It is a monetary information and software provider that operates on a subscription basis. People who are self-managing their portfolios can benefit from the platform’s practical investing advice and analysis.

It is one of the Top 10 Best Investment Newsletters.

Key Features and Working

The Total Portfolio

It is a hedge stock portfolio model, and it is called the Total Portfolio. It makes use of around 40 different stock suggestion types.

Each stock is selected from a pool of stocks that includes companies from developing markets, growth stocks, safe income stocks, and small-capitalization stocks. The Total Portfolio is a conservative investment strategy.

In terms of portfolio size, Stansberry advises a minimum of $100,000, withholding periods ranging from one to three years on average.

The Income Portfolio

The Income Portfolio is oriented at providing monthly income and can contain up to 30 assets at any given time, depending on market conditions.

The stocks, bond funds, and fixed income bonds that are recommended are usually income-producing investments such as dividend-paying equities.

The Capital Portfolio

This portfolio explains the Capital Portfolio by Stansberry Research since it is their entry-level offering. Once again, this is a cautious investment portfolio.

The Capital Portfolio focuses on gold stocks, foreign companies, real estate, biotech, and energy firms, among other things.

The usual holding time is one to three years, and they recommend that investors have at least $100,000 in their portfolios. In addition to the Capital Portfolio, subscribers will get access to seven other publications.

American Association Of Individual Investors ( AAII) Income Investing

Top 10 Best Investment Newsletters - AAII Investment
AAII Investment Stats

Dividend Investment is a service provided by AAII that takes care of a lot of the research and analysis when it comes to income investing. It is one of the Top 10 Best Investment Newsletters.

In order to target dividend-paying stocks that combine yield and asset quality, the services employ a proprietary stock-screening and selection technique developed by the company.

Key Features and Working

AAII Tools

MyPortfolio+, Stock Screen Power Rankings, the A-F Stock Grades Screener, Stock Upgrades & Downgrades, Top & Bottom Performing Funds, and a Fund/EFT Screener are some of the investment tools available through the AAII website. 

All of these resources are available in the AAII’s My A+ Investor Toolkit, which is free to use.

Portfolios of the AAII

The AAII’s Model Portfolios are among the most widely available tools that the organization provides. The AAII Model Shadow Stock Portfolio is one of the most popular products by the company.

Moreover, they created the Model Shadow Stock Portfolio in order to provide the greatest possible return on investment. While requiring the least amount of time and effort. 

In fact, the Model Shadow Stock Portfolio has beaten market benchmarks by a factor of four over 20 years.

Education and Involvement with the AAII

Education and community activities are two of the most significant benefits of membership in AAII. Webinars are one of AAII’s educational options. 

The Webinars are video lectures that cover certain elements of investing, like dividends, that are not available in the book. The AAII provides a variety of Webinars, including The Individual Investor Show. 

Many of these Webinars are suitable for investors who are less interested in appealing elements of investing, such as taxes.

CONCLUSION

Information is key in the world of investment, and it can be very tasking to source the information yourself.

By subscribing to the best investment newsletters, you can get these important information delivered right to you. From this list of top 10 best investment newsletters, you can find and subscribe to any that suits your investment needs.

Is Acorns Investing Worth It?

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Is Coinbase Safe: Everything You Need to Know

As a cryptocurrency investor, there are some important factors you need to consider when choosing an exchange for your investments. Such factors may include the user interface, method of payment, multiple coin support, fee structure, etc. If you’re looking for a crypto exchange with these features, then Coinbase is one of your best options.

Aside from these factors, one of the major concerns of crypto investors about crypto exchanges is security. So, if you’re considering trading on Coinbase, you may be wondering, “Is Coinbase safe?” In this article, you’ll learn all you need to know about Coinbase and how safe it is for your crypto investment.

Is Coinbase Safe | What is Coinbase ?

Coinbase is an online platform where you can buy, sell, store, or transfer cryptocurrencies.

It was founded in 2012 in San Francisco by Brian Armstrong and Fred Ehrsam, starting as a brokerage service for selling Bitcoin to customers. 

The platform has since then diversified its services to become a full-blown crypto exchange with services like payment plugin for merchants, coinbase index, etc. With more than 56 million users across over 100 countries, Coinbase is one of the biggest online crypto exchanges in the world. It is also the largest Bitcoin broker and exchange in the world.

Services Offered by Coinbase

There are a variety of services that the Coinbase platform offers to its users. What you can do on Coinbase includes:

  • Buying and Selling of various coins such as Bitcoin, Ethereum, LTC, etc.
  • Coinbase Wallet: enables users to store and have access to their crypto funds.
  • Coinbase Merchant Solution: Through a dedicated plugin, the platform enables merchants to accept payments in cryptocurrencies on their websites. This plugin is supported by renowned CMS such as WooCommerce, Magento, and Shopify.
  • Coinbase Index tracks the performance of all the assets listed on Coinbase.
  • Coinbase Custodian Services: stores and safeguards crypto for institutions.
  • USDC (USD Coin): Coinbase stable coin to mirror the USD currency.

Features of Coinbase

Coinbase features many facilities and capabilities that make it rank as one of the best exchanges in the crypto market. Hears are the top features of Coinbase.

User Interface

Is Coinbase Safe -Inside of Coinbase Trading Platform
User Interface of Coinbase

Coinbase has a very user-friendly interface that lets you navigate the platform with ease. The website is mobile-responsive with the home page featuring handy information about the website and ready buttons to get you started in no time. This is part of the reasons why Coinbase is a popular choice among beginner crypto investors.

Supported Coins

Although Coinbase started as a broker for just Bitcoin, it has extended its services to support a host of other popular coins. Today, Coinbase supports over 50 coins in its exchange and 500 tokens in total including NFTs (Non-Fungible Tokens).

Below is a list of some of the popular coins that Coinbase supports.

  • BTC
  • USDC
  • DOGE
  • DOT
  • ETH
  • FORTH
  • FIL
  • LTC
  • LRC
  • LINK
  • MANA
  • MATIC
  • SHIB
  • AAVE
  • ADA
  • BSV
  • And many others.

The availability and processing fees for each of the supported coins depend on factors such as country and payment method. You can find a full list of Coinbase supported cryptocurrencies and their availability on the Coinbase Pro Help desk.

Crypto-to-crypto Trading

Crypto-to-crypto trading lets you maximize the fluctuations of a coin compared to another to make a profit. For instance, you can trade BTC against ETH; if you sell BTC/ETH, you’re predicting that its price as against ETH will fall. If the market goes in favor of your predictions, you make profit, and vice versa.

This method of trading is one of the fastest ways to make profit in crypto. In Coinbase, you have access to more than 40 coins you can trade for BTC, about 11 coins for USDC, and about 7 coins for ETH. In total, Coinbase lets you trade up to 60 pairs for crypto-to-crypto trades.

On Coinbase, the USDC is stable with its price always equivalent to $1. So, you can easily know the fiat worth of your coins by first buying USDC and then using it to buy other coins. Note that crypto-to-crypto trading is available on Coinbase Pro.

Payment Methods

There are different payment options available in Coinbase to suit your location and transaction needs. Fees for transactions using any of these methods may vary. The accepted payment methods include wire transfer, credit cards, debit cards, PayPal (for withdrawals only), and crypto deposit and withdrawal.

Deposits and Withdrawal Transaction Limits

The transaction limits on Coinbase depend on the payment method, type, and level of account you’re using. Your account level depends on the level of verification you’ve done so far.

If you fully verify your account as a US resident, you can deposit up to $25,000 a day via ACH.  If you’re a European user, you may have up to €30,000 in your account per time.

For withdrawals, Coinbase generally does not restrict the amount you can withdraw to your fiat account. However, the time you get your money may depend on the method of payment you use. For instance, ACH transfers may take up to 5 business days before you can withdraw.

Coinbase Pro

This is a Pro version of Coinbase with some advanced features for advanced crypto users. With the Coinbase Pro, you have access to advanced trading options such as margin order, stop order, and limit order.

The system for fees for Coinbase Pro is also different; the higher your balance, the lesser the fees.

Coinbase Earn

This is a special program through which Coinbase lets users learn about crypto and earn at the same time. On Coinbase Earn, you’ll be required to watch some educational videos about cryptos and crypto trading. The videos are usually an average of 4 minutes long.

At the end of each class, the program requires you to write a test to qualify for the earnings. You get your reward deposited in your wallet after each quiz.

Mobile App

Is Coinbase Safe - Coinbase App USer Interface
Coinbase Mobile App

Over 90% of the world’s population of internet users surf the net with mobile phones. So, the Coinbase mobile app helps ensure that the exchange is visible and accessible to mobile phone users around the world.

The Coinbase mobile is available for download at the app marketplaces; Play Store for Android users and App Store for iOS users.

Coinbase Fees

As noted on their website, Coinbase does not charge customers for wallet services.

That means you don’t need to pay a dime for storing your crypt with Coinbase.

You do not also need to pay to transfer assets from one Coinbase wallet to another within the platform.

However, you incur some charges when you transfer crypto from Coinbase to a wallet outside the platform. This kind of charge varies with different transactions and is disclosed at the time of your transaction.

For every time you buy or sell cryptocurrencies on Coinbase, the platform charges you a spread of about 0.5%. Note that the spread may actually be higher or lower because of the fluctuation in market price between the quoted time and the transaction execution time.

Asides from the spread, you’ll also pay a Coinbase fee which is the greater of either a flat fee or a variable percentage fee.

The flat fee ranges from $0.99 to $2.99 depending on the transaction amount as illustrated here. The variable percentage fee may be influenced by the payment type, region, or product feature involved.

Is Coinbase Safe To Link Your Bank Account ?

For many crypto traders and investors, knowing that Coinbase is secure enough for then to link their bank account is a big deal.

Because of the high amount of capital and value that crypto platforms hold, they are often the target for hacking attacks. So, ensuring that an exchange is secure before investing is a top priority for most crypto geeks.

Coinbase employs different security techniques to ensure the maximum security of assets on the platform. First, the exchange notes that 98% of the funds they hold are stored offline. This means it is out of reach for hackers looking for accounts to devour.

Again, Coinbase ensures that all users enforce the 2-step verification security feature on their accounts.

Is Coinbase Wallet the most Secure Crypto Wallet ?

This means that beyond your username and password, you will have an extra means of proving that you’re the owner of an account before you’re granted access.

Also, the Coinbase website is hosted on a secured SQL (https) and user wallets are encrypted with the AES-256 encryption system. To help keep user accounts more secure, the platform checks for password strength when during sign up or password reset.

Very importantly, all crypto funds held by Coinbase are covered by insurance. However, the insurance policy does not cover losses due to individual account errors from the user, such as compromise of password.

How to Get Started With Coinbase

If you’ve chosen Coinbase as your crypto exchange, getting started is easy with just a few steps. You can follow these guidelines to set up your account.

  • Download the Coinbase app for your device
  • Open the app, enter your email to create an account, and click Start
  • You will receive a verification message in your email. Click the link to verify your email.
  • Enter your phone number, and a code will be texted to your number as you continue. Verify your phone number by filling in the code.
  • Fill in other required details such as name, date of birth, Social Security Number, etc.
  • Select your mode of usage e.g investing, online purchases, etc.
  • Enter your income source and click on “Let’s Go”
  • Follow the next set of prompts to link your bank account to your Coinbase account.
  • Viola! You’re good to go on Coinbase.

The Coinbase app is relatively easy to navigate and use. So, you can buy, sell, or withdraw your crypto in few easy steps. Let’s consider some general guidelines for making transactions on the platform.

How to Buy a Cryptocurrency on Coinbase

  • Log in to the Coinbase app and click on Get Started
  • Select the crypto asset you want to buy from the list of available assets. Assume you select BTC for instance 
  • Input how much you want to buy. Coinbase lets you buy fractions of assets. So, you just input the amount in USD and the fraction worth of the asset is calculated. Note that the minimum amount is $1.99
  • Preview the buy order. Coinbase takes a certain percentage of the order amount, so notice this charge.
  • Click on Buy Now to confirm the purchase.

How to Withdraw Your Crypto on Coinbase

You can sell your crypto assets directly into your Coinbase fiat wallet from where you can withdraw into your linked bank account. Follow these simple guidelines.

  • On the mobile app, select the Buy/Sell button.
  • Click on Sell
  • Enter the amount you want to withdraw
  • Preview the withdrawal and confirm when you’re ready.
  • Select the account you want to withdraw into and proceed.

However, note that your Coinbase withdrawal takes between 1 to 2 days to arrive in your account. Also, there’s no limit to the amount you can withdraw.

Pros

  • User-friendly interface
  • Wide variety of available cryptocurrencies
  • Wide range of crypto trading and investment services.
  • Low transaction minimum to encourage investments at every level
  • High security and Insurance

Cons

  • Relatively high transaction fees.
2-Minute Video Review of Coinbase

Alternatives to Coinbase

Coinbase is a popular choice among crypto investors, both for beginners and advanced users.

However, you can look up other platforms that offer similar services to compare and figure out which is most suitable for your investment. Such platforms include 

  • Binance
  • Kucoin
  • Kraken
  • Gemini
  • Robinhood
  • Coinmama, and a host of others.

CONCLUSION

As one of the leading exchanges for cryptocurrencies, Coinbase has been trusted by millions of users worldwide.

The security and insurance system it has makes it one of the most reliable platforms for crypto investment and trading.

Nonetheless, the answer to the popular “Is Coinbase safe?” ultimately depends on your opinion of the platform.

You can learn more about crypto investments and what you need to know to become a profitable investor on Successful Tradings.