The Motley Fool

Many companies emerge from bankruptcy with new shares of stock, leaving the old ones worthless (or nearly so).

You might want to sell instead, or perhaps just not buy any more shares.

An ADR is created when a bank buys shares of a foreign company outside the United States and issues a security representing shares of that company.

It's a rule addressing when to sell; it says you should sell out of a stock if it dips by 7% or so below your purchase price.

Traits to favor include a healthy balance sheet (less debt, more cash), profitability, growing revenue and earnings, a large target market to tap, a compelling business model and a reasonable or low valuation.

Bonds backed by the United States government are generally seen as least risky, while bonds with poor credit ratings are considered "junk bonds," with much higher risk.

A stock's volume will vary from day to day, and it can be very different from the volume of its peer companies, because each company has a different number of shares.

When legendary leaders pass the torch, selling isn't necessarily a smart move.

Some mutual funds are focused on one kind of asset, such as stocks or bonds, and some invest across asset classes.

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