If you are a beginner and thinking about stock investing, there are some basic tips that you can consider that will make your investment career go a lot more smoothly. First, think of the stock market as a giant auction only the ownership in the businesses is what’s up for grabs!
Most beginners need to understand how the stock investing works in the market. Stocks are traded at places called exchanges and there are traders who buy and sell shares of different companies for different prices.
The price of these stocks is determined by supply and demand so people wanting to buy a stock will send the price up because those shares are rarer and in more demand. People will pay a higher price for the stocks that are in demand.
On the other hand, beginners don't always understand the fact that stock investing makes for a lot of shares that are for sale and no one is interested in buying them! In these cases, the prices of the stocks will quickly fall because the demand is low.
When someone purchases stock in a company, they become part owner of the company and they can take a share in its profits. The more shares a person buys, the more ownership they are going to have in the company.
A simple beginners example of stock investing may help to clarify the situation. Lest suppose that you have $100 to invest and you decide to invest it in a company that has stock selling for $2 per share. You then own 50 shares. If the company's share price rises to $3 per share, you will then have $150 in stock value that you didn't have before! Essentially, you will have made a 50% return on your investment!
This is what stock investing is all about! Stocks can be labeled in many ways, such as common stock, preferred stock and penny stock.
The important thing for the beginner in stock investing is knowing which stocks to choose right before they increase in price. If you stick to some basic principles of investing, you are sure to become a wise investor in the future.
Source: Global Investment Insitute Tags: Beginner, Stock, Investment, Stock Investing, Share
Most beginners need to understand how the stock investing works in the market. Stocks are traded at places called exchanges and there are traders who buy and sell shares of different companies for different prices.
The price of these stocks is determined by supply and demand so people wanting to buy a stock will send the price up because those shares are rarer and in more demand. People will pay a higher price for the stocks that are in demand.
On the other hand, beginners don't always understand the fact that stock investing makes for a lot of shares that are for sale and no one is interested in buying them! In these cases, the prices of the stocks will quickly fall because the demand is low.
When someone purchases stock in a company, they become part owner of the company and they can take a share in its profits. The more shares a person buys, the more ownership they are going to have in the company.
A simple beginners example of stock investing may help to clarify the situation. Lest suppose that you have $100 to invest and you decide to invest it in a company that has stock selling for $2 per share. You then own 50 shares. If the company's share price rises to $3 per share, you will then have $150 in stock value that you didn't have before! Essentially, you will have made a 50% return on your investment!
This is what stock investing is all about! Stocks can be labeled in many ways, such as common stock, preferred stock and penny stock.
The important thing for the beginner in stock investing is knowing which stocks to choose right before they increase in price. If you stick to some basic principles of investing, you are sure to become a wise investor in the future.
Source: Global Investment Insitute Tags: Beginner, Stock, Investment, Stock Investing, Share
