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Sunday, April 5, 2009

Basics of Stocks 1: Stocks

By Mara Hernandez-Capili

A lot of information on the Internet is related to the world of stock trading. The subject has grown dramatically over the years as more and more people learn to participate in its field. I also believe that the knowledge of engaging on stocks is no longer limited to huge company or business owners- as there are entrepreneurs, employees and independent professionals who now own and enjoy the benefits of stocks.

There are more complicated stocks out there that are exclusively available to sophisticated investors. There are also company shares or stocks from companies which you can buy in order for your capital to increase a certain percentage lest the company enjoy higher profits in a given year. What I am about to discuss to you is the definition and some basic know hows in stock trading/ stock investing.

To fully understand stock trading or stock ownership better, let me introduce to you the definition of stocks. Stocks are shares or piece of ownership from a company. When you buy stocks from the company you are considered as its part-owner. Once you purchase a stock, your capital will enjoy percentage raises when the company experiences higher profits on their operations. However, there is also a risk present in acquiring stocks. You are not really guaranteed with increases since the company may also experience losses.

You will experience some perks once you obtain stocks or shares from a company. Since you are considered as part-owner you get to enjoy voting rights privileges on the companys board of directors. You will also have your money work for you since you virtually have to do nothing but check your stocks status from time to time for increase updates.

Investing in stocks is easy, challenging and fun. You just have to have the capital to start with. If youre the kind of person who detests risks, then it is advisable for you to start with a lower stock where you are most comfortable with. - 23221

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