Stock Market For Beginners
We all dream of the day when we can be in our house sitting on a sofa sipping nice tea along with an assortment of cookies and in the meantime you know that every minute there is money rolling into your bank account . Talk of good times and if wishes were horses then everybody would ride them.
Yes, in theory the above can be true but there are two ways to do that , the first one to start a company, make it profitable, sell a a majority share to somebody else then reap the fruits of your labor through that minority holding in that company. The other way is less labor and you can get started with as little as $1000.
High and high gain is the mantra. Buy the stocks at low price and then wait to sell at a higher price. Also do not worry about how much stock holding that you have in the company. You are still an owner with limited shareholding.
Before you take your cheque book out and start looking at companies to buy for $1000 , you should know the stock market basics and then start investing to make more money. It is absolutely very important to understand all the stock market terms and technical lingo which gets thrown around quite a bit to make some serious money in the market.
Let us get the initial understanding of what is a stock? I will take an example of a company called XYZ, newly formed and into the business of selling shirts. This company XYZ will need money to buy machinery, raw material, pay for employees salary etc and the money will come in the form of loans, money from friends and family and also you sell some part of the company to other persons or companies. How do you part with ownership of the company is that you create shares or parts of the company for say $10 each .
Each share has some value based on the profits of that company and that means that you are netitled to that mush profits and well as dividends. If there are 100 shares each with value $1 then if you own 51 shares you are the majority shareholder of the company. Your holding will be worth $51 because the share price is $1.
Now let us assume that you are the person who bought 49 shares of the company XYZ at a price of say $10 only, the company is making decent amount of profits, then you would like to sell those 49 shares to someone who is willing to pay more than $10 to you. The place where you could Ideally go to buy or sell something is a market and that is what a stock exchange is all about, a place to market your shares or let us say either buy or sell the shares of the company XYZ.
This is in simple terms what is a stock and what is a stock exchange.
Yes, in theory the above can be true but there are two ways to do that , the first one to start a company, make it profitable, sell a a majority share to somebody else then reap the fruits of your labor through that minority holding in that company. The other way is less labor and you can get started with as little as $1000.
High and high gain is the mantra. Buy the stocks at low price and then wait to sell at a higher price. Also do not worry about how much stock holding that you have in the company. You are still an owner with limited shareholding.
Before you take your cheque book out and start looking at companies to buy for $1000 , you should know the stock market basics and then start investing to make more money. It is absolutely very important to understand all the stock market terms and technical lingo which gets thrown around quite a bit to make some serious money in the market.
Let us get the initial understanding of what is a stock? I will take an example of a company called XYZ, newly formed and into the business of selling shirts. This company XYZ will need money to buy machinery, raw material, pay for employees salary etc and the money will come in the form of loans, money from friends and family and also you sell some part of the company to other persons or companies. How do you part with ownership of the company is that you create shares or parts of the company for say $10 each .
Each share has some value based on the profits of that company and that means that you are netitled to that mush profits and well as dividends. If there are 100 shares each with value $1 then if you own 51 shares you are the majority shareholder of the company. Your holding will be worth $51 because the share price is $1.
Now let us assume that you are the person who bought 49 shares of the company XYZ at a price of say $10 only, the company is making decent amount of profits, then you would like to sell those 49 shares to someone who is willing to pay more than $10 to you. The place where you could Ideally go to buy or sell something is a market and that is what a stock exchange is all about, a place to market your shares or let us say either buy or sell the shares of the company XYZ.
This is in simple terms what is a stock and what is a stock exchange.
About the Author:
The author has stock market for beginners advice and he would like you to write about definition of nasdaq.
posted by Credit Counseling at
6:19 AM
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