When an investor diversifies his/ her investment what is he/ she doing?
536133
lowering his/her risks to market volatility.
1079873
If the plan does the reinvesting, then no.  If the plan pays your dividend to you and you choose to invest it in the same plan, then yes.  \n\nIf the plan sent you a check, the money was in your hands to do with as you choose.  You will get a 1099-DIV and will have to pay tax on the dividend.  When you reinvest, you now have more shares of the security and a higher basis for when you sell it.\n\nIf you have your plan reinvest dividends, make sure that you keep track of them by saving the annual statements on which they are reported. If you keep good records, when you sell the investment, you'll be able to add the reinvested amounts to your basis in the investment, and pay less in capital gains tax. If you lose your records, in some cases the issuer of the stock or mutual fund will be able to tell you what your reinvestments were, but they might not be able to locate records that go back as far as you need.
986833
Fees are excepted in exchange for managing the fund. The thinking that you receive a greater rate of return with someone  carefully managign your investuaory.
276922
Actually, this is a reverse split. You get 4 for every 5 you own. Sounds like the compnay is buying back some of their interest.
146823
Segregated Funds combine the growth potential of mutual funds with the security of insurance. When you invest in a segregated fund, you are actually buying an insurance contract. The money from each contract is then invested in an underlying mutual fund. While you don’t own units of the mutual fund, the returns of your segregated fund will closely track those of the underlying mutual fund. \n\nSegregated funds come with guarantees designed to protect your money from market volatility. Depending on your chosen level of protection, you are guaranteed that you will get back up to 75-100% of your investment, regardless of how markets perform. Following your 10-year term to maturity or upon your death, you or your beneficiaries will receive either the guaranteed amount or the market value of your investment, whichever is greater.\n\nLike mutual funds, you can buy and sell segregated funds at any time. However, if you sell prior to the maturity date, you will receive the market value, which may be less than your original investment.\n\nSome segregated funds include a “reset” feature, which allows the investor to lock in investment gains and reset the minimum guaranteed amount at a higher level.
341184
My understaning is that this term refers to 3 groups of people:\n\n1) The stakeholders (investors)\n2) The actuators (those involved in advising, brokering and secureing the transactions.)\n3) The receiving (the companies, funds etc; you are investing in)
197791
Reinvesting dividend is like purchasing new units at their market value. Most of the people use this option to save tax on long term capital gains that they would incur in growth option. \n\nTo calculate the returns, the simplest and the most logical way is to compare the market value of your investment incl that of the newly purchased units through dividend reinvestment while ignoring the dates of reinvestment. Further, if you wish to, you can annualize the returns and/or use appropriate inflation deflator to calculate the real returns.
903284
What!!?  \n\nIt's about making a profit and has nothing to do with catering to anyone.\n\nIf you were going to invest your hard earned money wouldn't you want to make as much profit as possible?  It's business and has nothing to do with helping out anyone besides the investor.
628926
I don't understand your term "investment" what are you investing in? \n\nYou should call the Better Business Bureau and tell them the name of the company, see what you can find out about them. Some are scams. Be careful.
306629
decrease in cash flow for investing\nincrease in cash flow for financing
1008150
It's taking the dividend you received and buying more shares of that investment.  The share price the day it is reinvested is the price you are seeing.
375924
whats a capital investor?
910643
Hi Tajinder. Go and read some of the articles on investing at http://www.hammocksurvivalguide.com/\nYou will find a lot of useful advice there. Make sure you know what you are doing before you part with your money. Remember that when somebody makes money through an investment. Somebody else usually loses it.
981808
Investing is a risk, do so with insight!
2610
Whether you're hit with the AMT or not, the real answer is that you should exercise the shares when you are ready to sell them, there's no other reason for you to exercise shares unless you're leaving the company.  \n\nThere are tax and AMT issues, but without understanding your full income picture there's no real way to answer that question.\n\nI know of several people that exercised stock, held it and then placed margin buys against the value of the shares, when their stock tanked the margins were called and at least one of these individuals had to sell their house to pay off the margin call.  I was in your position a few years ago, i exercised and sold immediately all shares that i exercised.  [if for no other reason to 'diversify my portfolio']
1185175
YOU GOTTA BE KIDDING !!!   No one should have more than 5 % of their total investments in any one stock.   If you purchased it at $ .50 (total investment = $ 5,000 ), wait til it hits $ 1.00 and then sell off half.  You now have all of your investment back and no matter what happens,  you are safe.  If it goes to $2.00,  sell off another half.    Then just sit back and hope that it goes to $ 10 and splits.  In a few years, you could have 10,000 shares worth $ 100,000 but, in the meantime, you have had no sleepless nights worrying about it.
1050711
There is no value added by diversification (all things being equal). You are trying to reduce your risk.