Sp Guild to Investing

®

• Bull and Bear Markets • Stocks • Bonds • Indexes

• Mutual Funds • ETFs • Risks/Returns

and

VIRGINIA B. MORRIS

KENNETH M. MORRIS

VIRGINIA B. MoRRIs KeNNeth M. MoRRIs

©2007 by Lightbulb Press, Inc. All Rights Reserved.

hen the first Lightbulb Press guide to money and investing made its debut almost 20 years ago, it offered something unique: a serious discussion of the financial markets that combined clear, concise explanations of principles and products with colorful, informative, and often witty design. This new edition, the fifth, is evidence that our hallmark approach retains its relevance and appeal. Since that initial publication, we have experienced the longest bull market in US history and what threatens to be one of our longest and deepest recessions. We’ve been through heady gains, several market contractions, a crash, and two broken bubbles that sent the markets reeling and had a devastating impact on many individual portfolios at home and around the world. We’ve also seen the introduction, popularization, and sometimes the demise of a whole range of new financial products, including exchange traded funds (ETFs), managed accounts, real estate investment trusts (REITs), hedge funds, and structured products, as well as the growing impact of electronic trading on individuals and on traditional securities exchanges. The combination of volatile investment markets and the growing urgency for regulatory reform underlie the need for this revision. Whether you’re already familiar with Lightbulb guides or if you’re picking up a copy for the first time, you’ll find that the Guide to Money & Investing holds to our founding principle—namely, to provide objective, practical, and accessible financial information that everyone can understand and act upon. We are not offering financial advice in these pages as much as helping investors know what to look for, and what to look out for, so they can draw their own conclusions. We hope all of our...