Just 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 stock exchanges such as the New York Stock Exchange. The NYSE is one of the most common exchanges, but there are stock exchanges all over the world where stocks 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.
To further explain it, think about ebay. It works just the same because it is also a market. If you buy a bike at a garage sale for $20 and then sell it on ebay for $75, you have made a $55 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.
This is just the bare basics of how the stock market works. Basically, your objective should be to buy low and sell high. If you are able to do this, you will make a profit. You may not be able to do this all the time, but as long as you are making an overall profit, you will do well. - 20759
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 stock exchanges such as the New York Stock Exchange. The NYSE is one of the most common exchanges, but there are stock exchanges all over the world where stocks 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.
To further explain it, think about ebay. It works just the same because it is also a market. If you buy a bike at a garage sale for $20 and then sell it on ebay for $75, you have made a $55 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.
This is just the bare basics of how the stock market works. Basically, your objective should be to buy low and sell high. If you are able to do this, you will make a profit. You may not be able to do this all the time, but as long as you are making an overall profit, you will do well. - 20759
About the Author:
How does the stock market work effectively? Learn more about the stock market and learn how to buy cheap stocks to start making your money grow.
No comments:
Post a Comment