How do Stocks Work?
Stocks or shares are defined as a chunk of the company that an institution or an individual buys that makes him a part owner of that company. As a part owner you get to experience company privileges such as voting rights. A shareholder also receives an annual dividend from the companys annual profits. For example you purchase 1,000 shares of MAC Company and the annual profit goes to $7.5 billion with 750,000 shares all-in-all, your annual dividend would be $10 million. That is just how simple the concept of stocks is. The dividend then is defined as the amount the shareholder would be getting from the companys profits in relation to the number of his shares.
Stock Trading is the activity of buying and selling of stocks. It is oftentimes called as stocks exchange. It is entirely difficult and time consuming for a person who wants to sell shares of his company, by running down an ad or spreading the news through word of mouth. That is the reason why there are exchange floors. Exchange floors are venues where sellers and buyers (traders) meet on one roof- well; those are actually brokers that do the job for them.
The New York Stock Exchange is the basically the largest exchange floor in America today. It features the sales that are up for grabs and also its values and worth. We normally see the exchange floor as bursting with chaotic activity. Inside the NYSE is a large screen where the current market value and market situation can be seen. It shows the fluctuations and the rise in the market. Stock traders usually see this as an opportunity to sell their stocks so they could gain higher profits. The NYSE is also a place where the current market value can be seen along with the fluctuations or rises every second or minutes.
Stocks are very good financial instruments depending on the purpose and financial plan the investor has in mind. It does not have a fixed value because of the markets condition. Some investors are into day trading, where they rapidly transact hundreds of stocks per day for the instant profits it brings. It is more of like a gamble and financial experts see the buy and hold strategy as the better way in investing.
These are just some of the basics that one needs to learn about stocks and stock trading. - 23221
Stock Trading is the activity of buying and selling of stocks. It is oftentimes called as stocks exchange. It is entirely difficult and time consuming for a person who wants to sell shares of his company, by running down an ad or spreading the news through word of mouth. That is the reason why there are exchange floors. Exchange floors are venues where sellers and buyers (traders) meet on one roof- well; those are actually brokers that do the job for them.
The New York Stock Exchange is the basically the largest exchange floor in America today. It features the sales that are up for grabs and also its values and worth. We normally see the exchange floor as bursting with chaotic activity. Inside the NYSE is a large screen where the current market value and market situation can be seen. It shows the fluctuations and the rise in the market. Stock traders usually see this as an opportunity to sell their stocks so they could gain higher profits. The NYSE is also a place where the current market value can be seen along with the fluctuations or rises every second or minutes.
Stocks are very good financial instruments depending on the purpose and financial plan the investor has in mind. It does not have a fixed value because of the markets condition. Some investors are into day trading, where they rapidly transact hundreds of stocks per day for the instant profits it brings. It is more of like a gamble and financial experts see the buy and hold strategy as the better way in investing.
These are just some of the basics that one needs to learn about stocks and stock trading. - 23221
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial intelligence by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today."
posted by X - Men @ 3:39 AM
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