How does the Stock Market Work?
When you turn on the television and watch the news or when you open up a newspaper, you probably read and hear all about the stock market. You've probably heard about people making a lot and losing a lot of money, but how does it work?
The Stock Market isn't really that complicated. First you need to know what a market is. Think of a super market. It's a place where you buy and the owners sell goods. This is what a market is, a place to buy and sell goods or services.
Stocks are bought and sold on the stock market. Stock is basically ownership in a corporation. When you own stock you have equity in that corporation. In other words, you own part of that corporation.
Stocks are bought and sold on a stock exchange. The most common exchange would be the New York Stock Exchange. There are stock exchanges all over the world where stocks of different public companies are bought and sold.
If you want to make money from stocks, you need to follow a simple process. First, you buy the stock of a corporation at a specific price. Then, when the price has gone up, you sell it. The difference is the profit you gain.
It's just like buying and selling anything else. Take ebay for example. You might find at a yard sale a dvd that is very cheap, maybe $4. You go to ebay and you sell it for $7 after fees. That is a gain of $3, your profit.
You don't have to physically go and find someone to sell you stock or find someone to sell it to. When you have a brokerage account, you just tell your broker what you want to buy or sell and they use the exchange to find the buyer or seller.
These are the basics of the stock market and how it works. The rule of thumb to make money with it is to buy low and sell high. Even if you aren't able to do this all the time, as long as you do it most of the time, you should make a profit. - 23199
The Stock Market isn't really that complicated. First you need to know what a market is. Think of a super market. It's a place where you buy and the owners sell goods. This is what a market is, a place to buy and sell goods or services.
Stocks are bought and sold on the stock market. Stock is basically ownership in a corporation. When you own stock you have equity in that corporation. In other words, you own part of that corporation.
Stocks are bought and sold on a stock exchange. The most common exchange would be the New York Stock Exchange. There are stock exchanges all over the world where stocks of different public companies are bought and sold.
If you want to make money from stocks, you need to follow a simple process. First, you buy the stock of a corporation at a specific price. Then, when the price has gone up, you sell it. The difference is the profit you gain.
It's just like buying and selling anything else. Take ebay for example. You might find at a yard sale a dvd that is very cheap, maybe $4. You go to ebay and you sell it for $7 after fees. That is a gain of $3, your profit.
You don't have to physically go and find someone to sell you stock or find someone to sell it to. When you have a brokerage account, you just tell your broker what you want to buy or sell and they use the exchange to find the buyer or seller.
These are the basics of the stock market and how it works. The rule of thumb to make money with it is to buy low and sell high. Even if you aren't able to do this all the time, as long as you do it most of the time, you should make a profit. - 23199
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How does the stock market work? Learn more about the stock market and learn how to buy stocks to start making more money.
posted by X - Men @ 3:34 AM
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