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Stock Investing for Dummies

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Editor:            Paul Mladjenovic

Publisher:       Wiley Publishing, Inc.

Reviewer:        Goke Ilesanmi

One of the fastest and easiest (though also risky) routes to achieving financial sufficiency is stock investing. It is therefore important for us to X-ray this book christened “Stock Investing for Dummies” to educate people on stock investing. It is written by Paul Mladjenovic, a certified financial planner (CFP), consultant, writer and public speaker.

According to this author, stock investing is a great topic that is fascinating. Mladjenovic says although the stock market has served millions of investors for nearly a century, recent years have shown that a great investing vehicle such as stocks can be easily misunderstood or even abused. He educates that the great bull market of 1982 to 1999 came to a screeching halt in 2000. This consultant says investors at the tail end of a bull market often think that stock investing is an easy, carefree, mindless way to make a quick fortune.

This text has five parts of 24 chapters. Part one is generically christened “The essentials of stock investing” and contains five chapters. Chapter one is entitled “Exploring the basics”. In the words of Mladjenovic here, “Stock investing became all the rage during the 1990s. Investors watched their stock portfolios and mutual funds skyrocket as the stock market experienced an 18-year rising market (or bull market). Investment activity in the United States is a great example of the popularity that stocks experienced during that time period….”

This author adds that the stock market is a market of stocks and a market like any other market. “The stock market is an established market where people (investors) can freely buy and sell stocks because they seek gain in the form of appreciation…or income…or both,” educates Mladjenovic.

Chapter two is based on taking stock of your financial situation and goals. Here, this author says investing in stocks requires balance, but investors sometimes tie up too much money in stocks and therefore put themselves at risk of losing a significant portion of their wealth should the market plunge. He adds that then again, other investors place little or no money in stocks and therefore miss out on excellent opportunities to grow their wealth. Mladjenovic says a disciplined investor also has money in bank accounts, bonds, mutual funds, etc.

In chapters three to five, Mladjenovic discusses concepts such as defining common approaches to stock investing; recognising the risks and getting a snapshot of the market.

Part two is summarily woven together as “Before you get started” and covers four chapters, that is, chapters six to nine.

Chapter six has the thematic focus of gathering information. Here, this author educates that knowledge and information are two critical factors in stock investing. He expatiates that people who plunge headlong into stocks without sufficient knowledge of the market in general, and current information in particular, quickly learn a negative lesson.

In chapters seven to nine, Mladjenovic analytically X-rays concepts such as going for brokers; investing for growth; and investing for income.

Part three is based on the eclectic subject matter of picking winners, and contains four chapters, that is, chapters ten to 13.

Chapter ten is entitled “Running the numbers: Using basic accounting to choose winning stocks”. Here, Mladjenovic says stock picking can seem like a combination of art, luck, timing, and science. He stresses that when you turn to the so-called experts, you get all sorts of opinions, which frequently are contradictory. The most tried-and-true method for picking a good stock starts with picking a good company, Mladjenovic advises.

In chapters 11 to 13, this expert discusses concepts such as decoding company documents; analysing industries; and money, mayhem, and votes.

Part four is generally tagged “Investment strategies and tactics” and covers six chapters, that is, chapters 14 to 19. Chapter 14 is entitled “Taking the bull (or bear) by the horns”. According to Mladjenovic here, understanding the investment environment may even be more important to your wealth-building success than choosing the right stock.

Chapters 15 to 19 are based on the subject matters of choosing a strategy that is right for you; stopping in the name of money; getting a handle on DPPs, DRPs and PDQ; looking at what the insiders do; and tax benefits and obligations.

Part five generically focuses on the part of tens and covers five chapters, that is, chapters 20 to 24. Chapter 20 is entitled “Ten things to think about before you invest”. According to Mladjenovic here, before you invest in anything, you must have a strong economic foundation, have complete understanding of the types of investments appropriate for your current situation in life and educate yourself about financial and investment matters, guides Mladjenovic.

In chapters 21 to 24, this expert beams his intellectual searchlight on concepts such as ten things to remember after you invest; ten signals of a stock price increase; ten warning signs of a stock’s decline and ten ways to protect yourself from fraud.

The concepts discussed in this book are well-researched, educative and fantastic. As regards style, one thing that works for this text is the simplicity of language. There is the use of graphical embroidery, especially cartoons, to achieve visual reinforcement of readers’ understanding and soften otherwise too much seriousness of the concepts.

However, even though the title is meant to communicate the depth of research and didactic prowess of the text, it somehow sounds derogatory. It should have been something like “Stock Investing Simplified”. Generally, this text is fantastic. It is a must-read for anybody that wants to create wealth through stock investing.

GOKE ILESANMI (FIIM, FIMC, CMC), CEO of Gokmar Communication Consulting, is an International Platinum Columnist, Professional Public Speaker, Career Mgt Coach and Certified Mgt Consultant. He is also a Book Reviewer, Biographer and Editorial Consultant.

Tel: 08056030424; 08055068773; 08187499425

Email: [email protected]

Website: www.gokeilesanmi.com.ng

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3 injured as 2 armed drones from Lebanon explode in Israel

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Two unmanned aerial vehicles (UAVs) from Lebanon carrying explosives exploded in northern Israel on Tuesday, lightly injuring three people, Israeli authorities said, amid heightened tensions between Israel and Iran and its allies.

The Israeli military said in a statement that the armed drones crossed from Lebanon into Israeli territory and exploded in the area of Beit Hillel in the Galilee.

Three people sustained light injuries, Israel’s state-owned Kan reported.

The drones did not trigger air raid sirens, and the military said the incident was under review.

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CBN expresses commitment to harnessing digital technologies

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The Central Bank of Nigeria says it is committed to harnessing the power of digital technologies to enhance financial inclusion.

Mr Yemi Cardoso, CBN Governor, said this on Tuesday in Abuja, during a strategic institutions tour by participants of Senior Executive Course 46 of the National Institute of Policy and Strategic Studies (NIPSS).

Cardoso, who was represented by Dr Bala Bello, Deputy Governor, Corporate Services, said that digital technologies would also boost productivity and create an enabling environment for innovation and entrepreneurship to thrive.

According to him, the apex bank has already deployed robust digital technologies in driving most of its processes towards achieving optimal performance.

He said that NIPSS, as a foremost national policy think-tank, had made invaluable contributions to the socio-political and macroeconomic development of Nigeria.

“We are, therefore, not surprised at the apt and relevant choice of your research theme.

“The CBN and NIPSS have had a long-standing and robust working relationship since the establishment of the institute. This has culminated into positive mutual benefits for the two institutions.

“The CBN, on the one hand, has provided infrastructural support to the institute through construction of an auditorium and a hostel, in addition to the provision of technical support.

“On the other hand, NIPSS has supported the technical capacity of the CBN through the training of some personnel both at senior executive course level and intermediate course cadre,” he said.

The Director-General of NIPSS, Prof. Ayo Omotayo, said that the study visiting would be representing the institute in getting information from operators of the apex bank on the relevance of digital technology to developing jobs for Nigerian youths.

According to Omotayo, a lot of progress has been made globally in using digital systems to run the economy.

“The more of our activities that we can put in digital format, the more we get the opportunity of providing employment access to a whole lot of the 120 million active Nigerians.

“We at NIPSS always knock at the frontiers of knowledge, checking what is going to happen in the immediate future.

“We are working towards a system where we believe that almost every service can be delivered digitally,” he said.

The Acting Director, Monetary Policy Department of the CBN, Dr Lafi Bala Keffi, commended the NIPSS study group for its interest in the apex bank.

She urged the participants to explore the time-tested culture of NIPSS, which is to diagnose national, profer practical solutions and recommend ways of making such solutions realisable.

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NCAA suspends licences of 3 private jet owners

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Nigeria Civil Aviation Authority (NCAA) has suspended licences of three Permit for Non-Commercial Flight (PNCF), otherwise known as private jet owners, over alleged failure to comply with regulatory requirements.

Acting Director-General of NCAA, Capt. Chris Najomo, disclosed this to newsmen on Tuesday in Lagos.

Najomo said that after issuing a stern warning to the PNCFs in March, the authority deployed its men to monitor activities of private jet owners at airport terminals across the country.

He said that consequent upon the heightened surveillance, three private operators were found to have violated the annexure provisions of their PNCF and Part 9114 of the Nigeria Civil Aviation Regulations, 2023.

Najomo further stated that NCAA would be carrying out a re-evaluation of regulatory requirements compliance of all PNCFs owners within the next 72 hours.

This, he said, this was in line with the authority’s zero tolerance for violations of regulations.

“In line with our zero tolerance for violation of regulations, the authority has suspended the PNCF of these operators.

“To further sanitise the general aviation sector, I have directed that a re-evaluation of all holders of PNCF be carried out on or before April 19, to ascertain compliance with regulatory requirements.

“All PNCF holders will be required to submit relevant documents to the authority within the next 72 hours,” he said.
Najomo recalled that in 2023, the use of private jets for commercial purposes had gotten the attention of the Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), who issued marching orders for cessation of such acts.

He said that in March, NCAA issued a stern warning to holders of the permit for non-commercial flights, PNCF, against engaging in the carriage of passenger cargo or mail for hire and reward.

Najomo said that the riot act was also directed at existing Air Operator Certificate (AOC) holders who utilised aircraft listed on their PNCF for commercial charter operations.

“It must be emphasised that only the aircraft listed in the Operation Specifications of the AOC are authorised to be used in the provision of such charter services.

“Any of those AOC holders who wish to use the aircraft for charter operations must apply to the NCAA to delist the affected aircraft from the PNCF and include it into the AOC operations specification.

“NCAA wishes to reiterate to the travelling public not to patronise any airline charter operator who does not hold a valid AOC issued by the NCAA, when they wish to procure charter operation services,” he said.

The NCAA boss, thereafter, encouraged legitimate players in the aviation industry to promptly report such illegal activities to the authority for necessary action.

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