Introduction
Chapter 1
Getting Started
Chapter 2
Market
Chapter 3
Companies
Chapter 4
Internet
Chapter 5
Brokers
Chapter 6
Drip
Chapter 7
Records
Chapter 8
Strategies
Chapter 9
Close
Disclaimer
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Records
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Keeping accurate and up to date records are very important. Buy yourself a
hardbound memo book for keeping records. This book will serve several
purposes. Keeping track of your Drip’s, account numbers, addresses and phone
numbers. Keep track of all of your transactions of buying and selling. Also
have a few pages set aside for the certificate numbers as you get them over
the years.
Write down the company, account number and the address and telephone number
at the top of the page for each company. Skip a few pages for each company
allowing for growth over time. Make columns for the following.
Date, Amount Invested, Price per Share, Shares,
Total Shares, Total worth
Price Per Share multiplied by Total Shares = Total worth.
Do not get discouraged if the total worth goes down because of the movement
of the price per share. If this happens, it can be better in the long run.
Here is how. The same or a little more dollar amount will be invested each
quarter. When the price of the shares are lower, more shares are bought, thus
increasing your total share amount that are used to calculate dividends! This
is the bottom line we are looking for anyway, gaining as many shares for the
buck. When the share price goes back up, it will be worth more!
In the front of this book, keep track of the transactions. Here is a good
way.
Date, P/S, Company Name, Price, Comm/Fees,
Shares and Value/Cost
P/S stands for Purchase, Sold and have an abbreviation
for Split. Also write in which account Single (whom) or Joint. Commission and
Fees are important for cost price calculations later. Value is figured by
multiplying the price and the shares together. Do write in the Total cost of
shares next to the value. Somewhere, have an abbreviation for the brokerage
house. Also write down any spin-offs from the splits. ie. AT&T spun off
NCR and Lucent Technology. Do keep your brokers phone number and account
number in these pages.
Take a few pages to keep a log of Certificate Numbers:
Date Company Shares Certificate Number
It is really a good idea to keep a list of these.
This book is also a good place to keep serial numbers
for things like your tools, TV’s, stereo equipment, VCR’s, cameras etc.
Might even want to keep bank account numbers and credit card numbers along
with their telephone numbers in case they get stolen. Never let anyone see
this book and kept it in a safe place.
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