Question : In simple terms, how does the stock market work? Also, are there any good stock trading websites?
I never could quite understand how the stock market works. Can anyone give me an easy-to-understand description. Pretend like you're talking to a complete idiot because any technical terms will confuse me. I was also looking for a website where I can spend about $10 or $20 just to get a feeling of it. Also, is stock trading more of a long term investment, or can you make a regular income off trading stocks.
- asked by gregdaman925
All Answers:
Answer #1
Each stock is like owning a piece of a company. When you buy a stock, you are a buying a piece ofa company of what the market (or general public)thinks that that company is worth. As newinformation is released about that company or thesurrounding business world, the stock will go downdepending on the positive or negative affect onthe company's sales or earnings.
- answered by curious_maya
Answer #2
If the ticker symbol for any stock that you OWN isgreen: that means that stock has increased invalue, meaning that it's time to sell shares.Neverbuy or purchase stock if it's green, because theprice is up, and you will wind up probably losingmoney on your investment.If the ticker symbol forany stock that you OWN is red: that means thatstock is down for the quarter, and if you sell itwhile it's down, you will lose money on the deal.Only buy or purchase stock when it's red becauseyou are buying it cheap- then as soon as it turnsgreen- sell it off FAST!!! That way, you're incontrol of how you invest, and you can make goodmoney playing the stock market that way. I own 924shares of ExxonMobile, XOM, valued at$104.56/share. It will do me no good to sell itoff because the stock price is still rising,though it is in the green right now. So I guessI'm being greedy- waiting for the stock to splitagain, and double my money.
- answered by topgun1988
Answer #3
In the simplest terms, the stock market is like anauction. You have buyers and sellers. Morebuyers than sellers, and the price goes up. Moresellers than buyers, and the price goes down. Inthis case, you are buying and selling shares (orownership) of publically traded companies. Inreality, a little more complicated than that. Butthat is the jist.As far as long term investment...YES. Just ask Warren Buffett, the most successfulinvestor in history. His theory is he won't buy astock that he's not comfortable holding for 10+years. Can you make money in the short term? Yes, but history proves you'll lose more than youwin if you try. There are many stocks that paydividends on a regular (usually quarterly basis)if you're looking for regular income.re: the stocksplit answer... The price cuts in half when astock splits, so you don't double your money. Although many times, splits do tend to enhanceprice appreciation (appears cheaper to the averageinvestor).
- answered by m C
Answer #4
In simple termsCompany A needs moneyCompany Amakes an Initial Public Offering (stockshares).Investors buy stock shares and Company Amakes a quick buck.Investors then trade (buy andsell) their shares on the market to those whowould like to own a piece of the company.Theincrease and decrease of the price depends onthose buying and selling shares. What are theywilling to pay for a piece of the company and whatare they willing to let it go for.A good solidcompany who increases their profits year afteryear and future looks promising usually havestocks which increase in value.A bad company wholoses money every year and future looks depressingwill decrease in value and eventually be gone.Tosum up..... the stock market is about predictingwhat investors will do in the future. Pastperformance does not guarantee future results.Remember this.Is stock trading a long terminvestment? Hmm, we're peeling and onion here,there are many layers on investing.Regular incomefrom stocks? Sure, find stocks that pay adividend. Buy enough shares to live off thedividends.
- answered by reallyno
Answer #5
you ca try some stock trade simulators like thesimulator in investopedia.com there you can getthe feeling of it for free
- answered by platinium
Answer #6
Check this out!!!!You will be glad you did.BECOMEA MILLIONAIREFAST!!!
http://search.ebay.com/_W0QQsassZtealdialQQhtZ-1Andy
- answered by Andy
Answer #7
Ok..Read these webpages in the order givenbelow:#1
http://www.investopedia.com/university/stocks/#2
http://www.investopedia.com/university/ipo/Youwould get the whole idea... I started my daycareer using this wbsite.. and I owe a lot tothem...Besides this if you ever want to learn daytrading, then do let me know. I am a professionalday trader who teaches beginners how to do daytrading in my free time.Have a niceday.Girishkgirishraman@yahoo.comLearn day tradingfro free, free online course, day tradestocks
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- answered by kgirishraman
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