Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Discussions
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Re-check Your Withholding Every Year

Re-check Your Withholding Every Year - Life has a funny way of changing, but missing golden opportunities for tax savings doesn't make us neglectful, it makes us silly. ...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Investing In The Stock Market

In order to understand the basic fundamentals of the stock market, you have to simplify. A "stock market" is simply that, a place that is either like the NYSE on Wall Street or NYSE Euronext which is electronically driven, but where stocks are traded by many different sellers. Stocks are traded "at auction" and prices are determined by supply and demand. So if demand goes up, the prices go up and if the demand slumps, so will the prices.

So what, exactly, are stocks? A share of stock is the smallest piece of ownership in a company which means that once you own stock, you have the right to vote on members of the board of directors among other things and if the company distributes profits or dividends to shareholders, you too will receive a share. A dividend is the way a company will distribute a portion of it's profits to it shareholders.

There are two types of stock: common and preferred with most stock held by individuals being common stock. Simply put, common stock is representative of the majority of stock held by the public, giving the stockholder the right to vote as well as the right to share in dividends. Common stocks also have value in that they are usually highly liquid and can be bought or sold on almost any day the markets are open.

Preferred stocks are a little different in that they have fewer rights than common stock but they pay more consistent dividends and preferred stock will get dividends first over common stock. Usually when investors look to buy preferred stock, it's because of its current income from dividends.

A stock sector is where the market is broken down into sectors where each company runs the same type of business making it possible to see how a stock is performing in relation to its peers. Market indexes such as Nasdaq Composite, the Dow and S&P 500 are essential to investing if you learn to read them correctly.

It's important to understand that not all shares of stock are created equally and if you don't intend to go with a full service brokerage firm, you should familiarize yourself with such terms as restricted, float, authorized, outstanding and treasury shares. Each of these terms have different attributes and can affect your ability to make an informed decision before jumping into the market.

Discuss It!

192.168.1.1|192.168.1.1|192.168.1.1|192.168.1.1 said:

I admire the effort and time you put into your website along with thorough information you offer.

safari browser for windows said:

There is no link to Safari for Windows because Apple stopped ... us are downloading this stupid is browser is so that we can support our clients.

http://how-rich.org/net-worth/tag/wolfman-jack/ said:

It is unequivocally respect it to fortune you're share in validness drawing.

mercedes-benz slk55 amg car covers said:

Each of these terms have different attributes and can affect your ability to make an informed decision before jumping into the market.

Most Popular Articles
Most Popular Definitions
Related Questions
 
Daily Definition

Definition of the Day Redemption Price

Redemption Price - The redemption price of an issued stock, preferred stock or, bond known as the redemption value. This means that when you first divested and, purchased a preferred stock, well informed at the time of purchase what the specified price was. The set price of the stock for...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com