The Basics Of The Stock Market-jiuyaogan

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Business Stocks are the basic building block of the stock market. A stock represents partial ownership of a .pany – the smallest share possible. .panys issues stocks to raise capital and investors who buy stock are actually buying a portion of the .pany. Ownership, even a small share, gives investors rights to a say in how the .pany is run and a share in the profits (if any). While stocks give owners certain rights, they do not carry obligation in case the .pany defaults or faces a lawsuit. Worse .es to worse, the stock worth absolutely nothing but thats where the liability ends – investors will never actually owe money if the .pany goes bankrupt. 1. .panies Give Stocks To Raise Money In most cases, the .pany needs money to expand or to acquire new properties. Each stock issue is limited to a certain number of shares, and when they are issued they are given a par value. The value of a .panys stock is often directly related to it’s market share. 2. Buy Low, Sell High If you are going to buy stocks, make sure you invest in a .pany that you believe will be growing soon. Investors who acquire stock in a new .pany are taking more of a risk than buying shares of well-established .panies but the potential gain is much greater. For example, those who invested in Microsoft and held onto them are quite wealthy today. 3. How Is Trade Done? Trade actually happens at stock exchanges such as the NYSE or NASDAQ. Only reputable, and listed, .panies can have shares bought, sold, or traded. As an investor, you will need a broker to make your transactions for you. You can tell your broker to sell once the stock reaches a certain price or simply to sell what the market will bear. Your broker will get a .mission for the sale. 4. Why Stocks Over Other Investments? – Stocks grow over time – Stocks give you rights to vote as a shareholder – Dividends give you money once or twice a year – You will never owe money if the .pany goes bankrupt – Can earn more money than any other savings investment About the Author: 相关的主题文章:

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