Wednesday, January 31, 2007

Equities: An Introduction to the Core Concepts - Book Review

Equities: An Introduction to the Core Concepts (Mark Mobius Masterclass Series)

What Is It About?

This book is an introduction to equities as an asset class. The book starts with the most basic of topics, the purpose of equities and the risk and rewards that come from ownership, and ends with an overview on how to read financial statements, perform security analysis, and manage investments. In between the book touches on the different classes of equity shares, how to trade them, and other basic topics. Simply put, this book does cover the core concepts of equities.

What Did I Get Out Of It As A New Investor?

I would have liked this book to have been available last year when I first started investing. Deep enough to provide meaning to a new investor, but not so detailed that one feels lost, the book is a very good primer on equities. Touching on topics related to equity investment the book provides answers to new investor questions. Questions such as, what is the difference between preferred and common stock, what is an IPO and how is it conducted, and what is channel stuffing and how does it impact earnings, are but some of the basic questions this book addresses. While these fundamental questions may seem rudimentary to those in the know, they are not to a new investor.

The book does a good job of writing to the intended audience. Overall, the book is well designed for those with no previous exposure to equities. Further reinforcing its role as a teaching text, at the end of each chapter the book contains quick quizzes about the material covered.

The Good News

For those just beginning a search for knowledge about equities, this is a good book. If you are at the beginning of such a journey, or know one who is, reading this book will provide answers to many basic, yet necessary, questions.

The Bad News

Except for all but the most novice of investors this book may not have much appeal. On the other hand, an experienced investor may find value in this book as a reference when asked by friends and family for a good text to learn the basics of equities.

The Bottom Line

A new investor who is looking for a introductory text on equities would benefit from reading this book.

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penny stocks said...

I have a web site where I give advise on penny stocks and stocks under five dollars. I would like to take a moment to talk about low price stocks not classic penny stocks or stocks under one dollar the term most people most often think of when the word penny stock is used. Their are companies of really decent quality trading under five dollars’ but for every one company trading under five dollars that is of decent quality their are maybe ten of poor quality. So the really big difference between those investors that are tremendously successfull when it comes to investing in low price stocks and those investors that lose enormous amounts of money investing in stocks under five dollars’ is having a great deal of knowledge and experience when it comes to low price stocks’ or having a total lack of knowledge and experience when it comes to low price stocks. Finding quality stocks under five dollars requires a lot more research than finding a decent stock above ten dollars.


Now thats a great book review.