David Stevenson & Paul Mladjenovic 
Investing in Shares For Dummies, UK Edition 

Master the markets and make wise investments.

Investing in Shares For Dummies gives you the sound
advice and proven tactics you need to play the markets and watch
your profits grow. The experienced authors introduce you to all
categories of shares, show you how to analyse the key markets, and
offer invaluable resources for developing a portfolio. Whether the
markets are up or down, you’ll discover practical investing
strategies and expert insights so you have the knowledge to invest
with confidence.

The book is divided into five parts:

Part I: The Essentials of Investing in Shares (including
common approaches to investing in shares, assessing risks and
getting to know the stock markets)

Part II: Before You Start Buying (including gathering the
right info, finding a stockbroker, investing for growth and
investing for income)

Part III: Picking Winners (including decoding company
documents, analysing industries and seeking emerging sector
opportunities)

Part IV: Investment Strategies and Tactics (including
choosing a strategy, trading techniques, using your broker, and a
glimpse at what the insiders do!)

Part V: The Part of Tens

Table of Content

Introduction 1

Part I: The Essentials of Investing in Shares 9

Chapter 1: Exploring the Basics 11

Chapter 2: Sizing Up Your Current Finances and Setting Goals
17

Chapter 3: Defi ning Common Approaches to Investing in Shares
33

Chapter 4: Assessing the Risks 43

Chapter 5: Getting to Know the Stock Markets 57

Part II: Before You Start Buying 65

Chapter 6: Gathering Information 67

Chapter 7: Finding a Stockbroker 87

Chapter 8: Investing for Growth 99

Chapter 9: Investing for Income 111

Chapter 10: Using Basic Accounting to Choose Winning Shares
123

Part III: Picking Winners 139

Chapter 11: Decoding Company Documents 141

Chapter 12: Analysing Industries 153

Chapter 13: Emerging Sector Opportunities 163

Chapter 14: Pounds, Prices and Politics 175

Part IV: Investment Strategies and Tactics 187

Chapter 15: Taking the Bull (Or Bear) by the Horns 189

Chapter 16: Choosing a Strategy That’s Just Right for You
201

Chapter 17: Using Your Broker and Trading Techniques 209

Chapter 18: Getting a Handle on DPPs, DRIPs and PCA . . . ASAP
225

Chapter 19: Looking at What the Insiders Do: Corporate Capers
235

Chapter 20: Tax Benefi ts and Liabilities 247

Chapter 21: Creating a Smarter Portfolio with Lower-Cost Funds
257

Part V: The Part of Tens 277

Chapter 22: Ten Warning Signs of a Share’s Decline 279

Chapter 23: Ten Signals of a Share Price Increase 287

Chapter 24: Ten Ways to Protect Yourself from Fraud 293

Chapter 25: Ten Challenges and Opportunities for Stock Market
Investors 301

Part VI: Appendixes 307

Appendix A: Resources for Investors in Shares 309

Appendix B: Financial Ratios and Accounting Terms 319

Index 329

About the author

David Stevenson is a columnist for the Financial Times where he writes the ‘Adventurous Investor’ section. He has also written three books in the Financial Times Series and is a columnist for Investors Chronicle. Paul Mladjenovic is a certified financial planner and investment consultant with many years’ experience of teaching and writing about share investment.