It is possible for children to purchase stocks as investments. However, they have to have an account called a custodial account. This type of account requires that an adult, or one of the child's parents open the account for the child. Nevertheless, the same fees are involved when purchasing the shares. In the case of a child, searching around for ways to save on the transaction fees it advisable since the amount invested will be relatively low compared to adults.

The world's stock markets have lost around 40% of their value this year as a result of the global economic crisis and fears of a global recession. It really is a substantial fall. However there is still money to be made in my view, but I think it's important that you only invest in quality shares if you're hoping to make decent returns.

By quality shares I mean huge companies that have got a long historical record of increasing both their earnings and dividend payouts year after year. Ideally you should be looking to invest in market-leading companies with little or no debt, who are well placed to get through this forthcoming recession relatively unharmed.

Stock market indices play an important role in gauging the economic health and progress of a country. Oftentimes someone will say “the stock market is up” or “down” but that is not necessarily a meaningful statement. Understanding how stock market indices are calculated and their history can be very instrumental in understanding the stock market as a whole.

The Origin Of The Stock Market Index

As stock markets became more and more prevalent in industrialized countries, people began to look for a “barometer” of the stock market as a whole. The very first stock market index was the Dow Jones Transportation Average, which was created by Charles Dow in 1884. It was followed shortly thereafter by many more indexes like the Dow Jones Industrial Average which, in a very modified form, is still widely publicized and followed today.

Investing in bonds is very safe, and the returns are usually very good. There are four basic types of bonds available and they are sold through the Government, through corporations, state and local governments, and foreign governments.

The greatest thing about bonds is that you will get your initial investment back. This makes bonds the perfect investment vehicle for those who are new to investing, or for those who have a low risk tolerance.