How Skype Works

Skype is a software application that allows you to make free phone calls to more than 75 million people worldwide, and shockingly cheap calls to practically everywhere else on Earth! As a result of that, Skype has become the fastest growing service in the history of the Internet. Recently, the company was acquired by eBay, another step forward towards achieving the final goal of making Skype the world's largest communication company.

Skype is easy to install and use. It allows its users to make crystal clear calls, regardless of their location, send instant messages, switch seamlessly between text and voice communication, make video calls, conference calls, transfer files, call landlines and cell phones for a fraction of the cost of a traditional call. Skype is truly making a revolution in the way we communicate.

But how does it actually work? This article focuses on describing the Skype network and the technology behind it.

How Skype Works

Skype is a type of peer-to-peer Voice-Over-IP client, based on the Kazaa file sharing program. The developers of Skype claim that it provides better voice quality than similar applications like MSN and Yahoo Messenger. It also encrypts calls end-to-end.

There are two types of machines in the Skype network - ordinary host (Skype Client) and Super Node (SN). An ordinary host is the computer of a regular user who has the application installed and connects to the network in order to communicate with other users. The Super Nodes are the end-point of ordinary hosts in the network. In other words, ordinary hosts connect to the Super Nodes. Any computer with a public IP and proper hardware configuration can be a SN. An ordinary host must connect to a super node and must register itself with the Skype login server for a successful login. The Skype login server is the only central unit in the whole network. It stores the usernames and respective passwords of all Skype users. Nslookups have shown that this server is located in Denmark. All Super Nodes connect to the login server in attempt to verify the username password of the client. It stores your Skype Name, your e-mail address, and an encrypted representation of your password.

If you are a regular Skype user, then your computer is considered an 'ordinary host' that connects to a Super Node. The Super Nodes are servers, located in different parts of the world. But your Skype client, must know to which SN it has to connect. Therefore, every Skype client (SC) maintains a local table that contains the IPs and corresponding ports of Super Nodes. This is called a host cache and it stored in the Windows Registry of the given SC. So basically, every time you load up Skype, it reads the date from the host cache, takes the first IP and port from there and tries to connect to this SN. If the connection fails for some reason (the SN is offline; it is no longer part of the network, etc) then it reads the next line from the table. In case it fails to connect to any of the IPs listed, the Skype returns a login error upon start-up. Hence, the host cache must contain at least one valid entry in order for the application to connect to the network and work properly. Valid entry means an IP address and port number of an online Super Node. The path to the table in the Windows Registry is HKEY_CURRENT_USER / SOFTWARE / SKYPE / PHONE / LIB / CONNECTION / HOSTCACHE. You can verify that on your computer by opening the Start menu, then click Run and enter 'regedit', without the dashes. Of course, the exact path could be different in the next versions of the application.

As a concept, Super Nodes were introduced in the third-generation P2P networks. They allow improved search performance, reduced file-transfer latency, network scalability, and the ability to resume interrupted downloads and simultaneously download segments of one file from multiple peers. Basically, they help ordinary hosts connect to each other and guide efficiently the encrypted network traffic.

Super Nodes are also responsible for the 'Global Indexing'. This technology enables you to search for other users in the network. The company guarantees that it will find a user if he has registered and has logged in during the last 72 hours.

A very interesting moment about the Skype network is that it 'self-modifiable'. If you have the application installed, your computer may turn into a Super Node, without you even knowing it, because those capabilities don't have a noticeable impact on a computer's performance. SNs basically store the addresses of up to several hundred Skype users, without carrying any voice, text or file-transfer data. In that manner, the more Skype users come online, the more supernodes become available to expand the capacity of the network.

Skype routes the traffic intelligently by choosing the optimum data transfer path. Since it uses either TCP or UDP protocol, it breaks the whole data stream into separate packets, which can take different paths to the end destination. The final arrangement is done at the receiving end.

As far as safety and privacy are concerned, Skype uses Advanced Encryption Standard, known as Rijndel, used also by the U.S. Government organizations to protect sensitive data. Skype uses 256-bit encryption.

The programmers of Skype have implemented wideband codecs which allows it to maintain a good sound quality at a bandwidth of 32kb/s and allow frequencies between 5-8,000Hz to pass trough.

Your list of contacts, the application stores in the Windows Registry. This is called the Buddy list and once again, it is digitally encrypted. So, the list is local for every machine, or in other words, it's not downloaded from the central server.

Let's briefly describe the tasks of the Skype client. First it connects to the network. It then listens on particular ports for incoming calls, refreshes the host cache table, uses wideband codecs, maintains the buddy list, encrypts messages and determines if there is a firewall or not.

The login process:

The login process is the most important one and it consists of several phases. As mentioned, SC must connect to a valid SN in order to authenticate the username and password with the Central Server.

Skype gets the fist IP from the host cache, sends it a UDP packet and waits for response. If there is no response after 5 seconds, it sends a TCP packet to the same IP. It tries to establish a TCP connection to the HC IP address and port 80 (HTTP port). If still unsuccessful, it tried to connect to IP address and port 443 (HTTPS port). If this does not work either, it reads the next address in the HC. If Skype is unable to connect to a SN, it will report a login failure.

The application comes with several build-in addresses of different nodes, called bootstrap super nodes.

If the connection attempt is successful, the client must authenticate the user name and password with the Skype login server, which holds all user names and passwords and makes sure they are unique across the whole network. When the application connects to an SN, it receives an up-to-date list of other active SNs, so it has the most current information.

The Media Transfer process:

The video/voice communication through Skype is established through UDP. The trick here is that quite often, one of the users is behind a firewall or a router, hence it doesn't have a real IP address. But if both Skype clients are on real IPs, then the media traffic flows directly between them over UDP. The size of the voice packet is 67 bytes, which is actually the size of UDP payload. One second conversation results in roughly 140 voice packets being exchanged both ways, or 3-16 kilobytes/s.

If one of the callee or both of them do not have a public IP, then they send voice traffic to another online Skype node over UDP or TCP. The developers of Skype have preferred to use UDP for voice transmission as much as possible.

An interesting fact is that even if both sides are not speaking, voice packets will still be flowing between them. The purpose of these so called 'silent packages' is to keep the connection alive.

Conclusion:

There are several factors responsible for the success of Skype. First of all, the voice quality is better compared to other applications. It works without a problem on computers with firewall. It is very easy to install and use. Skype's security is also a big advantage. Everything that is being transferred across the network is being encrypted to ensure privacy. As a result of that, even if hackers intercept the data being transferred, they won't be able to decode it.

The Skype application does not include any adware or spyware. But, there are cases when third parties have managed to add such functionalities (not only for Skype), so it's really important that you download it from the right place. Therefore, do it either from the official website, or from respected sites as http://www.freesecuredownloads.com/skype/index.html.

How Skype Works
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Learn to Fly on Your Computer - RC Flight Simulator

Flying model aircraft via radio control (RC) has been a very popular hobby since the mid 1960s, with the advent of compact electronic radio control systems. However, in order to learn how to fly, all instruction had to be done with your model flying in the air. There was essentially no training that could be accomplished on the ground. As you can imagine, this method of learning to fly led to many accidents and crashed or damaged model aircraft.

With the availability today of powerful personal computers, practical radio control model airplane flight simulators are an everyday reality. For a very modest cost, you can purchase RC flight simulator software and hardware for home use. The hardware is a realistic replica of an RC transmitter (usually called the controller), plugged to your computer via the USB port. An RC flight sim produces extremely realistic images of flying sites, and the computer generated aircraft look and behave virtually like the real thing. You can even see the flight control surfaces move to your control stick's input.

The aspiring model airplane pilot uses the controller to taxi the airplane to the RC simulator's runway, increase the throttle, and take off just as if you were at the airfield. Of course, all engine sounds are realistically produced by the RC flight sim. The airplane becomes airborne, and the computer monitor's scene is automatically orientated such that you get a great view of the airplane in flight from your position "on the ground." It's just as if you were really at the field.

Learn to Fly on Your Computer - RC Flight Simulator

When learning to fly a radio control model airplane, it is always a very good idea to have an instructor for your first few actual flights. The RC flight sim, however, is invaluable in minimizing the time needed in the air to become an accomplished flyer. As a general guide, you can easily cut your flight practice time in half when an RC flight sim is an integral part of your training strategy.

Another model flight training area that RC sims have changed forever is learning and practicing advanced maneuvers. In the past, learning a new stunt had to be done at the field. You always risked a crash when practicing loops, rolls, inverted flight, etc. With the availability of the flight simulator on your computer, you can now safely practice these new maneuvers as much as you like in the privacy of your own home, without fear of damaging your aircraft. It is almost impossible to describe how quickly you can acquire new flying skills via this method.

In addition, most of the new RC flight sims have very useful video clips from experienced model airplane instructor pilots on how to perform these new flight maneuvers. They include maneuver descriptions of what you will be doing on the RC flight sim, as well as a discussion of common errors. They even discuss what you will be doing with your control sticks to perform these stunts.

New aircraft are constantly being added to RC flight sim programs. One can experience flying a wide variety of model aircraft with a click of your computer mouse button. These planes can range from lightweight electric powered park flyers to turbine jet fighters. The sounds, control feel and performance of these various airplanes within the RC flight sim are very accurately reproduced.

Whether you are just starting out learning to fly radio control model aircraft, wish to improve your flying skills, or just want to have some fun flying indoors on a cold, windy winter's night, the new generation of RC flight sims is an ideal way to enter the fascinating world of computer flight training.

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Alienware X51 Dell PC Guide - A Mini-Desktop With Plenty of Power, Speed, and Space

The Alienware X51 PC is a mini-gaming desktop by Dell. You can easily place it anywhere in your home due to its compact size. The tower can be placed vertically or horizontally on any flat surface. Don't think that its compact size holds it back, however, as it's still faster and more powerful than the average desktop. It's also highly customizable and upgradable, so you can add more hardware to it later on down the road.

It comes with a variety of advanced features, such as the AlienFX lighting technology and AlienFusion management controls. The lighting technology gives users access to 8,000 unique lighting combinations. It's up to you how you want to customize the lighting scheme of your desktop. As for the AlienFusion, the user is in charge of power management controls. Lower the settings when you want to preserve energy and crank them up whenever you need an extra boost of power.

The great thing about Alienware X51 is that it's inexpensive compared to other gaming desktops. It's a great starter entertainment PC. Despite its small sizes, it's still expandable. The components can be upgraded later on down the road. There is plenty of room for an additional graphics card, CPU, and memory. Keep the machine up to date by adding new hardware when you need it.

Alienware X51 Dell PC Guide - A Mini-Desktop With Plenty of Power, Speed, and Space

There are a number of dual and quad-core processors from which you can choose. The desktop can handle up to a 2nd generation Intel Core i7 processor with Turbo Boost technology. Its CPU should be able to handle any program you throw at it. An i3 model is the default option. If you need more than this, you can simply select an i5 or i7 when placing your order online.

Processors deliver the power, and memory delivers the speed. Your memory options go up to 8 GB dual-core channel with 1333 MHz (system memory). This is enough memory to take on high-performance multimedia and gaming applications with ease.

No entertainment PC is complete without a NVIDIA video card. This one comes with a 1 GB NVIDIA GeForce GT 640. You won't have to worry about your games lagging or your videos getting choppy. With this kind of graphics power, you can easily run your favorite multimedia smoothly. Thanks to a 1 TB SATA hard drive, you'll be able to save all of you files on the computer. It's almost impossible to run out of space!

If you read any Alienware X51 reviews, you'll see that consumers are very happy with the amount of power they are getting. It really is a great PC that's designed to last for a very long time. Its expandability alone makes it worth every penny.

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Now that you know what to expect from this desktop, you can take a look at Alienware X51 discount offers to learn how to save. Dell is really great when it comes to providing online shoppers with deals and promotional offers. You can save on an Alienware computer and accessories.

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Computer Cookies: Are They Good or Bad?

Explaining "Cookies" (the non caloric ones that reside in your computer!)

You can't talk about all those nasty 'things' that can 'attack' your computer while you are surfing the Internet, like viruses or spyware, without talking about 'Cookies'. But what are they and are they really bad for my computer?

Ok, first let's define the term, and then we'll explain the good and the bad about it.

Computer Cookies: Are They Good or Bad?

Cookie(s):

A small data (text and numbers) file (piece of information) created by a Web server (large computer that stores web sites) that is stored on your computer either temporarily for that session only (the time that you spend on a web site) or permanently on the hard disk (persistent cookie). Cookies provide a way for the Web site that you visit and go back to visit again, to identify users and keep track of their preferences. Amazon and Barnes and Noble online are very creative in the use of their cookies that get generated when you visit.

Here's an example from my computer from visiting the Disney.com website:

CP null*disneyworld.disney.go.com/1088 1761935360 30785590 403215680 29726670*

Notice that the only thing in that string of text and numbers that you can recognize is the name of the website. The rest of the information is simply a set of numbers that only a computer can understand.

Why are cookies important to you? Well, you would not be able to browse through the Web as you are currently used to if you had cookies restricted on your computer.

The Good "Cookies" (non calorie type)

Cookies are commonly used to "maintain the state" (the current or last-known status) of the session (time that you spend on a site) as a user browses around on the site. For example, if you filled out a form and decided to leave that for a moment to view another page, when you come back to that form, the information that you already filled in would still be there. Without cookies, the site would not know who you were.

On the 2 web sites that I mentioned, Amazon and Barnes and Noble, they both use a combination of cookies and online database to recognize you when you return to the site as well as "remember" your earlier choices and from those choices recommend possible book or music choices for you on your current visit.

Imagine, if you will, walking into a local Barnes and Noble store where a clerk immediately recognizes you, walks up to you as she calls you by name and walks you over to your own table of books and music. You see that they have put all of your favorite kinds of books and musicians on the table, both new and old works, all laid out for your quick viewing pleasure!

And, on the next table, is a sign saying "Other people who bought these items also purchased these items" so that you may find interesting items that you may never have seen but might find interesting. Wouldn't that make shopping a great experience?

Well, that is exactly what it is like to shop online with a sophisticated shopping web site like Barnes and Noble and Amazon! And it's only because of cookies remembering who you are that allows this type of service to occur.

The Bad Side of Cookies

Actually, as you have just seen, cookies on your computer are not a bad thing; it's just that the information that they contain can be quite enticing to unscrupulous people. Quite a bit of personal data may reside in the cookie files in your computer, such as ID and Password information. As a result, this storehouse of private information is sometimes the object of attack, which is what happens with some types of spyware.

The default (Default refers to a value automatically assigned to a computer program or device), settings in your Web browser typically allow "first-party" cookies that do not contain any personal information, but not "third-party" cookies.

First-party cookies are ones that are created by the Web site you are visiting. Third-party cookies are created by a Web site other than the one you are currently visiting; for example, by a third-party advertiser on that site (pop-up or banner). The purpose of such cookies is usually to track your surfing habits, which is why third-party cookies are considered an invasion of privacy and riskier than first-party cookies. In some instances cookies are used to consolidate and track user behavior across different sites, which provide marketers with private information about you without your knowledge. These are what are referred to as Tracking Cookies.

Aha, now we're getting somewhere!

Because, a Tracking Cookie is a somewhat new term for a cookie that has been design by the above mentioned 'unscrupulous' people that do business on the Web. It is part of the unfortunate phenomenon known as Spyware! But, that's a topic for another whole article!

Computer Cookies: Are They Good or Bad?
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What Is A Blog And How Does It Work? A Detailed Guide

So what is a blog and how does it work anyway? You're hearing more and more about the "blogging phenomenon" and the explosion of blogging online, and you might even fancy it as a way of earning a side income. Blogging is certainly an online publishing strategy that's here to stay, and here are 3 key characteristics of a blog that sets it apart from any other site:

What Is A Blog And How Does It Work? #1: It's A Simple Push Button Website

A blog is an easy way for anyone (and I mean anyone) with a computer and access to the internet to publish whatever they want on the internet without learning HTML or doing any kind of website development of their own. There are literally hundreds of different blogging platforms out there that provides free hosting for your blog, such as Blogger, WordPress and Tumblr, just to name a few. You also have the option of hosting your own blog on your own website, but you will have to buy the domain name and find a hosting provider of course.

What Is A Blog And How Does It Work? A Detailed Guide

What Is A Blog And How Does It Work? #2: It's A Publishing Tool

A blog has a unique way of displaying content, in that is shows up all your latest posts right at the top of the page, and older posts further down at the bottom. Most people started out using it as an online diary or journal, but since then many people have used it to showcase their expertise about various topics like gardening, stock trading and cooking, just to name a few. The beauty of a blog as a publishing tool is that you always see the newest content first, which is convenient for new and repeat visitors alike.

What Is A Blog And How Does It Work? #3: It's A Public Forum

You might be thinking "Okay, there's nothing all that special about a blog, it's just a glorified website... right?" Well, in addition to it being a push button website and a handy publishing tool, it also acts as a forum for your visitors. Anyone and everyone can comment on your posts, and many popular blogs have hundreds of comments on their posts every single day! That means that there are a lot of opinions being aired, which adds to the value of your content, and a strong community spirit being built, because people are personally invested in the blog.

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What Is A Blog And How Does It Work? #4: It's A Source Of Income

Just like any other publishing tool and community, you can make money from blogging if you know how to do it properly. Once you have a good understanding of what is a blog and how does it work?, you can easily leverage it to make money with your blog.

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Types of Monitors

A cathode ray tube or CRT, is traditionally used in most computer monitors and the advent of plasma screens, LCD, DLP, OLED displays, and other technologies. As a result of CRT technology, computer monitors continue to be referred to as "The Tube". A CRT works by moving an electron beam back and forth across the back of the screen. Each time the beam makes a pass across the screen, it lights up phosphor dots on the inside of the glass tube, thereby illuminating the active portions of the screen. By drawing many such lines from the top to the bottom of the screen, it creates an entire screenful of images.

A Liquid crystal display (LCD) is a thin, flat display device made up of any number of color or monochrome pixels arrayed in front of a light source or reflector. It uses very small amounts of electric power, and is therefore suitable for use in battery-powered electronic devices.

A plasma display is an emissive flat panel display where light is created by phosphors excited by a plasma discharge between two flat panels of glass. The gas discharge contains no mercury a mixture of noble gases (neon and xenon) is used instead. This gas mixture is inert and entirely harmless.

Types of Monitors

The glass panels seem to be vacuum sealed, because when they are broken the plasma breaks up, seemingly from the addition of air to the space.

Surface-conduction electron-emitter display (SED) is a flat-panel, high-resolution display. Some SEDs have a diagonal measurement exceeding one meter (approximately 40 inches).
The SED consists of an array of electron emitters and a layer of phosphor, separated by a small space from which all the air has been evacuated. Each electron emitter represents one pixel. The SED requires no electron-beam focusing, and operates at a much lower voltage than a CRT. The brightness and contrast compare favorably with high-end CRTs. Prototype electron emitters have been developed with diameters of a few nanometers. SED technology can offer unprecedented image resolution.

Digital Light Processing (DLP) is a technology used in projectors and video projectors. In DLP projectors, the image is created by microscopically small mirrors laid out in a matrix on a semiconductor chip, known as a Digital Micromirror Device (DMD). Each mirror represents one pixel in the projected image. The number of mirrors corresponds to the resolution of the projected image: 800x600, 1024x768, 1280x720, and 1920x1080 (HDTV) matrices are some common DMD sizes. These mirrors can be repositioned rapidly to reflect light either through the lens or on to a heat sink.

An organic light-emitting diode (OLED) is a thin-film light-emitting diode(LED) in which the emissive layer is an organic compound OLED technology is intended primarily as picture elements in practical display devices. These devices promise to be much less costly to fabricate than traditional LCD displays. When the emissive electroluminescent layer is polymeric, varying amounts of OLEDs can be deposited in rows and columns on a screen using simple "printing" methods to create a graphical color display, for use as computer displays, portable system screens, and in advertising and information board applications. OLED may also be used in lighting devices. OLEDs are available as distributed sources while the inorganic LEDs are point sources of light.

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The Fixed Asset Register - A Beginners Guide

Within the wider framework of keeping a company's books there sits a plethora of different accounting methods and record keeping processes that have to be used. Some because there is a statutory requirement, others by virtue of good common sense. Into the first category falls the FAR or 'Fixed Asset Register', the Companies Act of 1956 means that it is mandatory for companies to maintain a Fixed Asset Register as part of their general business bookkeeping.

The Fixed Asset Register is quite simply a record of the chunk of a company's assets that constitute its 'fixed' assets; fixed is the term used to describe assets which cannot easily be converted into cash and are not held for the purpose of selling them on; assets that are owned to enable a business to function, either to provide a service or produce a product; in the case of manufacturers it is usually machinery, land, property etc. and for service providers, equipment and premises; it can also include less tangible assets such as copyrights, patents and trademarks.

The reasons for the existence of an individual register of this kind are many; the Government's interest lies mainly in always knowing the value of a company's fixed assets for taxation purposes, hence the legislation, but there are other benefits to knowing the separate costs of such assets not least for the purposes of a company's insurance.

The Fixed Asset Register - A Beginners Guide

However this record is not a simple list, it collects very specific data in a precise and detailed way and the way that it is recorded can tell those who understand FAR a lot at a glance. In addition to detailing the nature of a company's fixed assets, the bookkeeper must account for loss or impairment of assets as well as logging the ongoing condition and changing value.

Keeping track of the exact origins of large assets can be problematic for the person keeping the records, as it can involve physical verification, which, as the name suggests would mean physically finding and visiting each piece of equipment or building to confirm its existence and location; most bookkeepers therefore 'tag' each asset in the register with an engraved alpha-numeric identification number to make tracking simpler; of course in the case of land and vehicles there will conveniently already be independent registration numbers.

Part of the recording process includes logging the assets' value in the form of an assigned 'carrying cost', in order to do this a valuation has to take place; the carrying cost is usually set at either the current market value, the potential sale or realisable value or the distress sale value, which basically refers to an asset's scrappage value.

Most bookkeepers and accountants who have the task of maintaining the Fixed Asset Register do so nowadays with the help of specially designed computer software; these programs can produce reports on demand and collate large amounts of information. Although they do not necessarily make the job of keeping the FAR up to date a simpler one, they certainly can make it less time consuming, which in turn helps with the accuracy of these important and required records.

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Why is My Internet Explorer So Slow? - A Guide to Speed Up Internet Explorer

Have you been asking yourself, why is my internet explorer so slow? Your connection is fine, yet internet explorer seems to take forever to process information and load pages. This is actually a much more common problem than you may think. Before you toss your computer into the garbage can, why not try to speed up internet explorer the easy way?

The most likely cause of IE being slow is a computer that has not been properly maintained. The problem with most computer users is that they spend all of this money on upgrading and buying new equipment, yet spend nothing to properly maintain it. When the CPU becomes sluggish we simply ask "why is my internet explorer slow" and then go buy a new computer. Well this will make the computer stores very happy. But what if I let you in on a little secret? You can turbo charge your existing computer right now so it runs like it is brand new.

What you need to do is run a full system scan and diagnosis. I promise there are lots of troubled areas of your computer that can be cleaned up and optimized. Lets start with the Windows registry.

Why is My Internet Explorer So Slow? - A Guide to Speed Up Internet Explorer

The Windows registry is the most important area of your computer. It contains information to run all software and hardware, including Internet Explorer. Yet it is filled with errors, corrupt files, and redundant programs that are doing nothing but taking up space and slowing everything down. Windows does not have an internal tool to clean this up. To speed up internet explorer, the first thing you can do is clean up all the junk out of the registry.

I personally use a program that does this and so much more. It will also remove all the hidden programs running in the background and taking up valuable RAM. This program will perform a diagnosis in your entire computer and provide solutions to make your computer run faster.

So stop asking the question "Why is my Internet Explorer so slow?" Simply scan your computer for free and start speeding it up.

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How to Buy Shares - A Complete Beginner's Guide

Picking stocks is a lot like buying a car. When you buy a car, you can't just go with the first one that's the right color - you need to know about it. You want to check under the hood, or at least kick the tires. If you don't know about cars, you bring along your brother or your dad or someone who does. Most importantly, you take your time. If you're not sure about the mileage or the sound from the exhaust you pass it up and wait for a better deal. It's no different when you pick stocks.

The first thing you need before you buy shares in a company is a stock trading account. For this, you need a broker. If it's your first time, I recommend using a discount broker. This type of broker will process your buy and sell orders, and little else. Where do you go to find a stock broker? Try your bank. There might be other less expensive options, but your bank is a place you feel comfortable, and you know how it works. Chances are if you have an account there they can help you start a share trading account easily and at a low cost. I trade shares using online banking.

For your first purchase, you want to buy what you know. Look at 3 companies that you like - companies you have bought things from or know people at. Pick up a newspaper and write these four things down:

How to Buy Shares - A Complete Beginner's Guide

Price- If the shares are 0 a piece, you might want to skip this one for now. Year's Move (YM) - This is how much the share grew in value last year, and a fairly good indication of what the company will try to beat this year. Dividend Yield (DY) - This is a percentage of the value of each share that the company pays to shareholders each year. Some shares don't pay dividends, but make up for it with more growth (if the company doesn't pay shareholders it can spend that money making the company more valuable). Price/Earnings (PE) - This is simply the price of the share divided by how much the company made in this financial year. This figure can be misleading depending on current phase of the financial year, but basically a low Price/Earnings ratio means that the company's stock is valued about right for how much money the company is making.

Either that or the share is undervalued and could go through the roof any day now. If the ratio is high it means that the company has a lot of projected growth, but little actual profits so far. This was common during the "internet bubble" when companies had huge prospects but hadn't made any money yet.

Once you have these, it's time to look at some graphs. Go to the company's website, and click on "Investor Relations". Download everything, and look at graphs of their share price and dividend payouts for the last year, 3 years and 5 years.Now read the newspaper. Not the front page, the boring bits at the back about money. Most of these articles are fairly easy to read, and reading them for a few weeks will give you a pretty good idea of what's going on in the world of high finance.

Picking stocks is about more than knowing the company. It's about knowing what's going on in the world that will affect the company. Now it's time to decide on your goals and make a buy case. First, write what you want out of your investment. Do you want to build capital over 10 years, or do you want to double your money in a year, but with the risk of losing half of it? If you are the former, then you are a growth investor. Otherwise you are a value investor. You might be somewhere in between, but since this is a first purchase it would be a good exercise to pick stocks according to a strict investment philosophy.

Now your buy case: This is an argument for and against buying the shares. In it you need to write:

What's going on in the company with regards to new business, new directors, new enterprises, new debt, new acquisitions/sales of subsidiaries etc. What's happening in the world that could affect the company's ability to make money The worst thing you can imagine happening. Think of the one thing that would make your company's stock plummet more than anything else. As many pessimistic ideas as you can think of for why you should not buy these shares Why you think it is a good time to buy shares in this company now

Lastly, before you buy shares, ask people. Ask someone who works for the company or ask an investment advisor, even if you have to pay them. If there is even one factor that you have not considered, your entire share trading experience could be very painful.

Remember, buying shares is not gambling if you know the rules. Understand your risks, and don't take any you cannot afford to make. Avoid startups for a first investment - save the riskier stocks for when you are more confident.

How to Buy Shares - A Complete Beginner's Guide
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About me: I have a bachelors degree in English and Philosophy (UCT, Cape Town). I have written a 100 page eBook on foundation philosophy and over 1,000 articles for web sites and discussion forums. I post on WriteNonsense (almost) daily about how to get started doing what I do, and how to navigate all of the difficult issues like finding work, getting paid, etc.

http://www.investorguide.com/university.cgi - Some great tuts on investing for beginners.

WriteNonsense - My blog about how to get started writing web content for a living

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How Long Do I Need to Keep This? - A Guide to Receipts, Statements and Financial Clutter at Home

In most homes, paper causes clutter. And it seems to mysteriously multiply by itself. But just how long do you need to keep all those receipts, bank and credit card statements and other financial papers? Below is a handy In most homes, paper causes clutter. And it seems to mysteriously multiply by itself. But just how long do you need to keep all those receipts, bank and credit card statements and other financial papers? Below is a handy reference that you can use for dealing with your home paper trail.

Toss after One Month

ATM and bank deposit/withdrawal slips

How Long Do I Need to Keep This? - A Guide to Receipts, Statements and Financial Clutter at Home

keep in a file folder until monthly statement received
reconcile with your statement to ensure that charges and payments have been properly processed
if for major purchase with warranty, staple receipt to the owner's manual and file for the term of the warranty
if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner's insurance policy
if for minor purchase without warranty, shred

Cash purchase receipts

enter into your chequebook or computer software to ensure that you are accounting for all your purchases
if for major purchase with warranty, staple to the owner's manual and file for the term of the warranty
if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner's insurance policy
if for minor purchase without warranty, shred

Credit card receipts

keep in file until monthly statement received
reconcile with your statement to ensure charges and payments have been properly processed
if for major purchase with warranty, staple to the owner's manual and file for the term of the warranty
if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner's insurance policy
if for minor purchase without warranty, shred

Toss after One Calendar Year

Keep for 7-10 Years

Keep Indefinitely

Now what?

Now that you know what to keep, where are you supposed to put it all?

Set up a simple home filing system to cover the basics, and invest in a couple of sturdy cardboard or plastic filing boxes for the information you should keep log-term or indefinitely.

And a final caution - when you decide that you no longer need to keep certain documents, make sure you shred them and DO NOT put them in the general trash or recycling. Sensitive financial information or personal information should always be DESTROYED to avoid any chance of identity theft that could lead to headaches greater than you can imagine.

How Long Do I Need to Keep This? - A Guide to Receipts, Statements and Financial Clutter at Home
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Written by Jill Chongva of TheOrderlyDiva.com ©
http://www.theorderlydiva.com
Email - diva@theorderlydiva.com
Telephone (204) 333-9438

Jill Chongva is a WordPress expert, Professional Organizer,Virtual Assistant & Life Blogger who has over 25 years experience in the Administration field. Her WordPress and marketing assistance help small business owners make the most of their message by creating branding that stands out in the crowd. Learn more at http://www.theorderlydiva.com where she shares "real solutions for real life!"

© 2003-2011

References-
Real Simple's "Getting Organized" booklet
"Organizing from the Inside Out" - Julie Morgenstern

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