Money City Direct

Here’s one of my favourites, commodities such as gold, crude oil, and food, have been traded on the markets for a lot longer than stocks and shares, and still form a large part of the global economy. They have a reputation for being a safer bet than equities, but is this reputation warranted? In this article, we take a brief look at the history of the commodities markets from ancient times up to the present day. More >

It is never a good idea to put all your eggs in one basket, and this is as true in the world of finance as it is anywhere else. One way in which you can spread the risk of investing is to purchase several different assets, in an investment strategy known as portfolio investing. That way, if one asset fails to perform, your other assets will hopefully make up for it. Here is a guide to putting together an investment portfolio. More >

Most of the shares you see listed on the stock exchange are what is known as ‘common stock’. While this type of stock does not come with the same privileges as its more exotic cousin ‘preferred stock’, it can often prove to be a better investment. Here we take a look at the advantages and disadvantages of purchasing common stock rather than other types of equities. More >

The forex market, where currencies are traded night and day from Sunday evening to Friday evening, enables traders to buy and sell large quantities of foreign currency. It is one of the biggest financial markets in the world today, but also one of the most exclusive. In this article, we take an in-depth look at the forex market, and explain how it came to be. More >

Convertibles are effectively bonds that can be converted into shares, which gives them greater profit potential than ordinary corporate bonds, with less risk than regular shares. This makes them very popular with fund managers looking to maximise income and minimise risk on behalf of their clients. Here, we discuss the various ins and outs of convertibles, and advise you how to get the best out of them. More >

Corporate bonds are effectively I.O.U. notes issued by corporations in order to raise capital to expand their business. They pay a fixed rate of interest, known as the coupon rate, which is expressed in currency rather than percentage terms. Usually, corporate bonds are longer-term debt instruments, with a maturity date that is at least a year after their issue date. Corporate bonds with a loan length of less than a year are often called ‘commercial paper’ to distinguish them from longer-term corporate bonds. Occasionally, the term ‘corporate bonds’ is used to describe all types of bond, other than those issued by national governments in their own currencies, such as those issued by international organisations or local authorities. However, strictly speaking the term ‘corporate bonds’ only refers to bonds that are issued by corporations. More >

Futures contracts are a type of forward contract between buyers and sellers of assets such as commodities, shares, bonds, or financial instruments. They allow you to purchase an asset at an agreed price, and then take delivery of it later, by which time it will hopefully have gone up in value. The futures market offers great profit potential for the savvy trader – but it can be a risky business. Here, we take an in-depth look at the futures market, and discuss just what is involved with a typical futures trade. More >

Government bonds are widely viewed as a risk-free investment, and while it is true that they are less risky than most other types of investment, there are still some risks attached to them. In this article, we describe government bonds and point out the advantages of investing in them, as well as some of the potential pitfalls. More >

Linked bonds are bonds whose performance is linked to an index such as the FTSE or a select basket of shares. They offer a high guaranteed income when compared to corporate or government bonds, but the risk to your capital is much greater than with either of these. Here, we discuss the pros and cons of investing in linked bonds, in order to help you decide whether they are the best option for you. More >

In recent years, online share trading has become a very popular way for small investors to get directly involved in the stock market. It is cheaper, quicker, more convenient, and less pressurised than other methods of share dealing. In this article, we explain the advantages of online share trading, and give you some tips as to what to look out for when choosing an online share trading service. More >

Options are financial instruments that give the buyer of the option the right to buy or sell an asset if certain conditions are met. There are many types of option, and some can be bought and sold on public options exchanges, which makes them of interest to investors. Here, we explain how options work, and talk about some of the different types and styles of option that are available. More >

In recent years, electronic paperless share certificates have all but replaced conventional paper share certificates. The reason for this is that electronic share certificates are cheaper and easier to deal with, as they require less administration. However, many people still prefer to hang on to their old share certificates, rather than trading them in for their more efficient electronic equivalents. Here, we look at the relative merits of owning physical share certificates as opposed to virtual ones. More >

Stock market indices, such as the FTSE 100 or the Dow Jones Industrial Average, are widely used by journalists and financial services firms as benchmarks for the performance of the stock market on a national and global scale, and the various industry sectors within it. In this article, we take a look at all the different types of stock market index, and how their prices are calculated. More >

If you are not a full-time trader, and you want to be able to play the stock market, you will need to use a stockbrokers service. Stockbrokers services can range from automated, online execution-only services to personal services, which can offer advice and can even manage your portfolio for you if you do not have the time to. Here, we show you how to choose the right stockbrokers services for your needs, and give you some tips as to what to look out for when choosing a stockbroker. More >