How does the Stock Market Work?
Try turning on the news or opening up a newspaper. You'll probably read or hear something about the stock market. I'm sure you've heard about stocks making a lot of people money and about people going broke buying stocks, but just how does the stock market 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.
In the stock market, stocks are bought and sold, instead of food. When you own stock, you own part of a company, this is referred to as equity. When you own stock in a corporation, you have equity in 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.
How do you make money from buying stocks? It is very simple. It's just like buying and selling other goods and services. You buy the stock for one price and then sometime in the future you sell it for a higher price to make a profit.
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.
How do you buy and sell the stock? This is where the exchange comes into play. You don't have to go around and find someone to buy from or sell to. You set up a brokerage account and a broker buys or sells the stock for you with your money when ask them.
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. - 23210
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.
In the stock market, stocks are bought and sold, instead of food. When you own stock, you own part of a company, this is referred to as equity. When you own stock in a corporation, you have equity in 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.
How do you make money from buying stocks? It is very simple. It's just like buying and selling other goods and services. You buy the stock for one price and then sometime in the future you sell it for a higher price to make a profit.
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.
How do you buy and sell the stock? This is where the exchange comes into play. You don't have to go around and find someone to buy from or sell to. You set up a brokerage account and a broker buys or sells the stock for you with your money when ask them.
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. - 23210
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Want to know how the stock market works to make money? Learn more about the stock market and learn how to buy stocks easily to start making your money grow.
posted by X - Men @ 3:18 AM
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