Good Question my friend! And a really hard one!
As I would like to keep all my answers simple I will go ahead and try to describe the Stockmarket in Layman's terms. The Stockmarket hmmm...... simplest way to understand it is breaking down its root words. Stock and market! Stock - the shares of a particular company or corporation. Market - a place where you can buy goods. So if we put the two words together? Its basically a place where you can buy shares of certain companies. To tell you honestly i had no idea what the stockmarket was and how it worked. Until most recently when I was browsing the net I wound up at forbes.com where I read the list of the richest men in the world. And one of them is actually the owner of the company I work for. This inspired me for when i read most of their stories on business and how they became who they are now, most of them had a say about the stockmarket and how they were able to raise capital for their businessess with some stockmarket deals. A good example would be Google.com owners. Imagine these guys young yet have all the things they dreamt of. And all started with their school project which they decided to launch in the net and went public with the company through the Stockmarket. Man how i wish i were them! Do you think I can achieve that with my blogspot???hahaha dream on, dream on Dr. Blogger! ....Well back to the real topic at hand...So here is a compilation of what i learned.
Stockmarket 101
- A company can only have stocks when they go public with their company offering regular people like us to have a chance to own a small (word i should've used is micro hehe)percentage of their company. Unless you have enough money to actually buy a big percentage of their stocks.
- How can we earn from the Stockmarket? Well to keep it simple buy a stock for $ 1 when you are able to sell it for $ 2 you've already earned.
- How are the companies' stocks priced? Companies Stock price varies on the performance of the company as a whole. The brand,product,their profit and even their employees affect the stock. Let's say "Company A" hires a new CEO this may lead to a rise or fall of stock depending on the performance of Mr.New CEO.
- How can you buy a stock? There are many ways to buy stocks now. There are even many sites which you can do online trading of stocks. One of which i browse through and get tips from is bloomberg.com covering a lot of issues and with a worldwide perspective and aastocks.com an asian based site for stock trading and information. But the original way is to look for brokers who act as a middlemen (like real estate agents) in ordering stocks for you.
So what else can I add? well I think that's all i can share regarding this issue. Maybe you can elaborate more on a certain topic regarding the stockmarket then i'll be happy to try answer it again. Visit my clinic again "yourfirstguest"! Dr. Blogger out!
Search on this: Warren Buffet - One of the richest men in the whole world. Well known regarding the area of stock trading. A bad ass in the stockmarket field! Someone you should admire if you want to get into stocks.
