Shares and Investing: If you call me a yuppy, you die.

[MADDOG]

OK, I know this is a sex site, but some of you must be rich and I want in. I need a little advice.

I finally have a bit of spare cash, and rather that blowing it on a new stereo or car (Both of which are tempting, believe me!), I have decided to invest in the stock market. However, after watching the Aussie Stock market very loosely, I have come to the conclusion that there are far bigger returns to be had in the US. Only thing is, I am clueless as to how to go about investing there, and even whether I can or not.

I am particaularly interested in Initial Public Offerings (IPO's) and the speculative end of the market, as I'm not dealing with a large sum of cash just yet and I don't mind taking a few not TOO risky risks. (If that makes sence?).

I am an Australian Citizen and Resident, and I have no US Passport, Relo's or anything like that.

What I would like to know is:-

1. Can I, as a Non US Citizen and Resident invest in IPO's on the American markets? If so, are there any restricions?

2. How do I do that? I mean, how do I apply for shares and then buy them? If you don't know if it's different for someone from overseas, just clue me in on how it's done within America.

3. How do I trade those stocks once I have them? Do I need to go through a full service broker? (Which I am happy to do because I really know Sweet FA at this stage, but I intend to learn.). Or could I do it through E*Trade or something.

4. I was wondering if anyone knows of any books or websites that deal in simple English with the ins and outs of trading shares - I mean the very basics. I have no idea.

5. Are there any great sites with info on new IPO's and good stocks to look into?

6. Is there anything else I need to know or give consideration to before I go ahead with this?

Any help you guys could give me would be greatly appreciated. (Because it will help me get rich.) Thanks heaps!

MADDOG

 

[Cheyenne]

OMG, you want IPO's to start with??? It is wonderful that you want to learn to invest, but IPO's aren't for beginners. To get a sex analogy in here, it would be like going from complete virgin status to anal expert in one evening. Besides, IPO shares are normally allocated to the best customers of full service brokers. Most people on the street can't get them even if you want them. Normally anyway, there are always exceptions to every rule.

If you have just a little bit of money to start with, I wouldn't go with individual stocks. Buy a good mutual fund that will diversify your money for you. Individual stocks are much more risky and you need to hold a variety of them in various sectors to cut that risk. Mutual funds still own stocks, but are much safer for beginners in the market.

I'm not sure about the logistics of someone in Australia buying US mutual funds. But you won't need a full service broker, you can probably do a search on the Net and contact the fund directly. I like Strong Funds and Janus Funds, personally. But you have to do your own research.

I also don't know any good books about learning the stock market, but I'm sure someone else will answer your thread with ideas in that area.

 

[Cheri]

For basic info check out:
http://www.fool.com/
I like their books too.
I also read investing newsgroups and message boards when I get the chance.

 

[Expertise]

Another thing you might want to check on is what percentage of your total investment can be "foreign". Canadian law allows no more than 40%. That is to say the other 60% would have to be invested in Canadian funds or companies. My guess is that Oz has something similar.

IPO's ....don't let fear or good judgment hold you back.LOL

Consult a broker, at least at first.

 

[Magic Merlin]

MADDOG, here is another link to a site that might be able to help you understand the US investment climate.

http://www.bobbrinker.com/


It has a lot of useful information for the beginning investor, with a glossry of commonly used terms in the investment market. Although, its geared mostly for the US investment market, its a good resource for learning about investments.

Good Luck.

MM


p.s. So are you saying your a Yuppie wannabe *ducking as MADDOG takes a shot at MM* just kidding, guy...

 

[April]

Oh my! Where to start? I'm like a kid in a candy store! I'll just go randomly as my mind takes me.

For IPO information, try http://www.ipo.com
Try browsing through http://www.money.com, CNN's website, (they have a financial area)
I would also recommend browsing some financial magazines to find out what's going on.

Cheyenne's right about going with a mutual fund first. You don't want to blow your money right away with an IPO that goes bad. Or doesn't do anything. I've done pretty good with a Legg Mason fund. Research before you invest. I can't stress that enough.

 

[Godiva]

MADDOG you're not a Yuppie you're a Yuppie-wannabe.LOL

 

[Bliss]

Irving is a Yuppie.

Maddog,

Unless you were balding and middle aged in 1983 and still own a Beemer from that era due to failed Reganomics, y'all ain't no Yupster.

For sound analysis for your funds, visit http://www.msdw.com

No hype, just facts there. Best wishes and high interest yields to you!

 

[Siren]

Does this mean I die?

 

[Skibum]

Mad Dog, whatever you do, do not buy stock in a ski area company. The one I work for went public in Oct. 1998 at $18/share. Now it is $2.35 and falling.

 

[Thumper]

Maddog is a yuppie!!!!!

Yuppie yuppie yuppie!!!

Just the daredevil in me I guess! Can't resist a challenge...

 

[Cyra_3]

Maddog, whatever you do don't go for British Telecom, they've just lost their contract with MCI a major American company and they can't negotiate a new contract due to massive debts and possible restrictive practices in the UK they are trying to expand in Europe and not succeeding very well.

 

[Bigdog]

To my fellow canine..

I have to second Cheyenne on the mutual funds. All my retirement accounts are in various mutual funds and I have done very well over the last 10 years. One thing, you have to have long-term goals and not get spooked every time the market dips. I have had 7% losses followed by 34% gains, just be patient and ride the waves.

As for IPO's, if you don't know what you are buying it's like juggling chainsaws while drunk.

 

[Whispersecret]

Now my advice might be colored by the fact that my husband is in financial services...but I think you should consider consulting a financial advisor. I look at it like any other service I go to a professional for. Sure, I can plan my own two-week vacation in Kenya, but it would take a shitload of work. I'd rather pay a fee to a professional travel agent and save myself the headache. And in an area that's as important as my own investments, that goes double. They work with money FOR A LIVING. If an advisor is shitty at it, they probably won't have many clients. Ask your friends and business associates for referrals.

Mutual funds are a good way to go. Don't be afraid of the ups and downs of the market. Stocks, as I understand them, are really more for the long-haul, unless you're a huge risk-taker.

 

[RonG]

I don't have the time or inclination to watch the stock market all day, so I let the experts do that. But I do have a sure fire way to avoid getting screwed by my broker.

1) Select a broker/financial planner with kids.
2) Get said kid on a sports team I am coaching.
3) Make sure that my financial planner recognizes that I now have a hostage.

So far, so good. The big thing in investing is making sure your planner understands what time frame you are looking at. Is the investment for retirement, income growth, etc.?