Getting back into a stock is something that you must be able to do when trading. Some people will refuse to re-enter a stock after they have just had a bad experience with it.
But if it gives you a trade signals you must re-enter. Let's say I buy a stock only to see it come down and hit my stop. I end up losing only 2% on the trade because I have cut my losses short. It doesn't feel good but it is not enough to hurt me too bad.
Then a couple days later it gives me a sell signal. I short it and end up making 10% as the stock plummets. This scenario isn't all that uncommon. In fact it happens all the time. If I had been too scared to pull the trigger and re-enter the stock because of the past I would have missed the big 10% gain.
You have to accept that every stock will give you a false signal from time to time. You also have to realize that all stocks can give you big profits. If you refuse to re-enter a stock after a bad trade you are losing a potential to make money.
Of course you also have to realize that all stocks have different personalities. As such some stocks may work very well for your trading approach and others may not work as well. If one stock is just giving you consistent losses time and time again, you may want hold off on trading it. If fact you could even put that stock on the do not trade list.
In short re-entering can be very profitable. Getting the bad end on one stock trade isn't enough to stop trading the stock, or stop trading altogether. If you are consistently losing money on a stock it can benefit you to step back and take a look at why that is. If it is because the stock is too volatile stop trading it.
For more information on the stock market visit http://www.stocks-simplified.com
Article Source: http://EzineArticles.com/?expert=Shaun_Rosenberg
Monday, December 15, 2008
Stock market ticker tape
The stock market ticker tape is, now, a computerized unit that relays information about a stock's trading activity to investors around the world. The stock market ticker tape's information includes the stocks' symbol on the exchanges, the latest price per share, and its trading volume. Before computerized methods, stock market ticker symbols were printed out on a thin piece of paper that continuously streamed out of a ticker-tape machine. The stock ticker-tape machine was invented in 1867 in the aftermath of the development of the telegraph machine. In those days, "pad shovers" were employed to feed the tape to brokers in their offices; brokers would set up offices as near as possible to the New York Stock Exchange, etc, so that they could get the feeds via wire as quickly as possible. With globalization and computers this sort of setup is clearly no longer needed.
Stock market ticker symbols are the letters (once in a while also numbers) used to denote a particular security that is being traded publicly and/or on stock exchanges. This symbol is chosen by the company when it begins issuing shares for public trading, and it's what is used to track stock activity and place buy or sell orders by investors. These brief symbols are necessary to streamline the vast amount of activity information that flows through stock exchanges on every business day. Without the stock market ticker symbols, confusion and turpitude would reign in the stock market.
People who tune into TV shows like MSNBC Business will see streaming stock market ticker symbols going across the bottom of the TV screen. These can be tricky to understand unless you know what they are all about; how to read the symbolic language.
Investopedia comments, "Stock symbols are the most recognized type of ticker symbol. Stocks listed and traded on U.S. exchanges such as the NYSE have symbols with up to three letters. Nasdaq-listed stocks have four-letter symbols. Ticker symbols for options are structured to represent the underlying stock ticker they are based on and also their expiration date and contract type (either a put or a call option). Mutual fund ticker symbols are usually alphanumeric and end with the letter X to differentiate them from stock symbols."
"Ticker" comes from the conceptual word of "tick", which is any activity of a stock whether it be up or down. A stock market ticker symbol readout will include, in order from left to right: the unique call letters of a specific security; the volume or number of shares traded (K = 1,000, M = 1,000,000 and B = 1,000,000,000); the last bid price for that stock, which is considered its price until there is a new bid; an up- or down- arrow that indicates if the stock's price is down or up from where it started the trading day; and the change amount, or the difference in price from the previous trading day's closing price.
Once you know what you are looking at and looking for, the stock market ticker symbols become easy to read and bring you a wealth of information you need if you are going to successfully trade in stocks.
Two geeks from Miami swear under oath their stock trading robot is not illegal. Read about how you could use this robot to earn thousands of dollars at: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
Stock market ticker symbols are the letters (once in a while also numbers) used to denote a particular security that is being traded publicly and/or on stock exchanges. This symbol is chosen by the company when it begins issuing shares for public trading, and it's what is used to track stock activity and place buy or sell orders by investors. These brief symbols are necessary to streamline the vast amount of activity information that flows through stock exchanges on every business day. Without the stock market ticker symbols, confusion and turpitude would reign in the stock market.
People who tune into TV shows like MSNBC Business will see streaming stock market ticker symbols going across the bottom of the TV screen. These can be tricky to understand unless you know what they are all about; how to read the symbolic language.
Investopedia comments, "Stock symbols are the most recognized type of ticker symbol. Stocks listed and traded on U.S. exchanges such as the NYSE have symbols with up to three letters. Nasdaq-listed stocks have four-letter symbols. Ticker symbols for options are structured to represent the underlying stock ticker they are based on and also their expiration date and contract type (either a put or a call option). Mutual fund ticker symbols are usually alphanumeric and end with the letter X to differentiate them from stock symbols."
"Ticker" comes from the conceptual word of "tick", which is any activity of a stock whether it be up or down. A stock market ticker symbol readout will include, in order from left to right: the unique call letters of a specific security; the volume or number of shares traded (K = 1,000, M = 1,000,000 and B = 1,000,000,000); the last bid price for that stock, which is considered its price until there is a new bid; an up- or down- arrow that indicates if the stock's price is down or up from where it started the trading day; and the change amount, or the difference in price from the previous trading day's closing price.
Once you know what you are looking at and looking for, the stock market ticker symbols become easy to read and bring you a wealth of information you need if you are going to successfully trade in stocks.
Two geeks from Miami swear under oath their stock trading robot is not illegal. Read about how you could use this robot to earn thousands of dollars at: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
How i make money for stocks in a falling market
have been making some great money from the stock market over the last few weeks. In this article i will explain my strategy and disect how and why I have been making money despite global indices falling as the full effect of the credit crisis sinks in to the financial world.
The media is absolutely full of doom and gloom about the worlds stock markets at the minute. Most of the major indexes like the Dow Jones or FTSE have fallen significantly over the last few weeks. Many people will tell you that it is the worst time to be owning stocks in years. This is not exactly true. What is not publicised by the media is that volatile markets such as these present very strong opportunities to make money from the markets. I will explain how below.
Many of the markets that focus on smaller companies (non banks) are not affected by the negative news coming out of the banking sector. As a result my penny stock investments have been unaffected by the current crisis. In fact they have been doing better than usual, I suspect as a result of many investment managers moving some of their portfolio funds from major indices to smaller cap firms and penny stocks in order to limit their losses.
My investment strategy is very simple. I am subscribed to a stock list that provides me the results of a detailed computer program/analysis tool. This gives me a massive head start to picking winning stocks as it saves me wasting the majority of my time investigating stocks that I end up not investing in. This subscription (which cost me under $100) dramatically improved my investment success alone.
Once I have the shortlist I simply hit Google and look at recent articles about the company in the press. Key signals I look for are recent announcements concerning new contracts signed, possible take over targets, anything really that indicates they are a company on the rise. Next i usually head to their website and compare it to their competitors sites. I ask myself the simple question "if i was a possible customer, would I choose them or their competitors?". If I choose them I will go ahead and invest once the stock reaches the target price in the list I received as mentioned above.
The great thing about this strategy is I no longer get bogged down in all of the details and numerical analysis I used to spend days and days performing.
To help you get started using the same strategy here is a link toy the stock short list i use. Good luck and happy investing.
Article Source: http://EzineArticles.com/?expert=James_McKerr
The media is absolutely full of doom and gloom about the worlds stock markets at the minute. Most of the major indexes like the Dow Jones or FTSE have fallen significantly over the last few weeks. Many people will tell you that it is the worst time to be owning stocks in years. This is not exactly true. What is not publicised by the media is that volatile markets such as these present very strong opportunities to make money from the markets. I will explain how below.
Many of the markets that focus on smaller companies (non banks) are not affected by the negative news coming out of the banking sector. As a result my penny stock investments have been unaffected by the current crisis. In fact they have been doing better than usual, I suspect as a result of many investment managers moving some of their portfolio funds from major indices to smaller cap firms and penny stocks in order to limit their losses.
My investment strategy is very simple. I am subscribed to a stock list that provides me the results of a detailed computer program/analysis tool. This gives me a massive head start to picking winning stocks as it saves me wasting the majority of my time investigating stocks that I end up not investing in. This subscription (which cost me under $100) dramatically improved my investment success alone.
Once I have the shortlist I simply hit Google and look at recent articles about the company in the press. Key signals I look for are recent announcements concerning new contracts signed, possible take over targets, anything really that indicates they are a company on the rise. Next i usually head to their website and compare it to their competitors sites. I ask myself the simple question "if i was a possible customer, would I choose them or their competitors?". If I choose them I will go ahead and invest once the stock reaches the target price in the list I received as mentioned above.
The great thing about this strategy is I no longer get bogged down in all of the details and numerical analysis I used to spend days and days performing.
To help you get started using the same strategy here is a link toy the stock short list i use. Good luck and happy investing.
Article Source: http://EzineArticles.com/?expert=James_McKerr
Stock split
Stock split is a psychological as well as a mathematical game. Getting a share for half the price is an encouraging idea. But the split does not always work well. It depends on the mood of the market. In a bear market, this exercise is not much effective. In a rising market, the option is encouraging. The investor gets a feeling that the share price will reach the pre-split level once again very soon. Such developments have taken place in the past and the shareholders have gained substantially. Unbelievable gains are scored by them.
The precise reasons for a stock split decision is known by company's board of directors only. The most common one is 2 for 1. The shareholders will own twice the number of shares originally owned. The value of the total shares remains the same. For example, if you owned 100 shares before the split and the price was $ 100 per share, after the split you would be the owner of 200 shares of $50. The percentage of the shareholder's ownership of the company remains the same. Two factors have changed- the price and the number of shares. The ratio of the split can be anything-3 for 2, 5 for2, and 5 for 1 etc.
One of the reasons, why the companies do this exercise is, the management feels that the price of the share has gone beyond the reach of the common investor. The shares, are generally sold in the lots of 100, and once the price of the share touches $ 100 level, it has been observed that the buying and selling activity for that particular share slumps, as the ordinary investor can not afford high volume transactions. When the price is reduced the investors are on the buying spree again.
By convention and by experience, the message is clear. A prosperous company only goes for this exercise. The company is doing great and probably it will prosper fast. So, it has become the habit with the investors and brokers to look out for such companies. These flag-ship companies and sure candidates for sharp rise in the share prices! One of the tangible advantages of the split is greater liquidity. This exercise by the company is considered as the sign of bullishness. It is seen in the market that the split means the company is doing extremely well and it is the sign of confidence about the future profit-results of the company. Immediately after the split, a short-term rally is seen, but the market does not take much time to stabilize and normalize. The least wanted development can also happen. If the expectations of the investors are not met and the share price falls, they will lose confidence and this may lead to further fall in the share prices.
Reverse split is another mathematical exercise. This practice is resorted to by a company under compulsion and not under happy circumstances. When this happens, a shareholder will have less number of shares for more prices. When the share price drops abnormally, to provide the semblance of respectability, this silent punishment is provided to the shareholders, by reducing the number of shares, thus increasing the price. This is done by the companies to avoid another unfavorable position. The rules in many exchanges are so framed that it will de-list the shares, when the price falls below the certain level continuously for 30 days.
In fine, stock split is a welcome exercise. It enhances the image of the company in the eyes of the brokers and investors and in real terms it has provided substantial gains to them in the past.
SogoTrade stock broker: Stock trading
Why to choose SogoTrade as your brokerage firm: online trading
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
The precise reasons for a stock split decision is known by company's board of directors only. The most common one is 2 for 1. The shareholders will own twice the number of shares originally owned. The value of the total shares remains the same. For example, if you owned 100 shares before the split and the price was $ 100 per share, after the split you would be the owner of 200 shares of $50. The percentage of the shareholder's ownership of the company remains the same. Two factors have changed- the price and the number of shares. The ratio of the split can be anything-3 for 2, 5 for2, and 5 for 1 etc.
One of the reasons, why the companies do this exercise is, the management feels that the price of the share has gone beyond the reach of the common investor. The shares, are generally sold in the lots of 100, and once the price of the share touches $ 100 level, it has been observed that the buying and selling activity for that particular share slumps, as the ordinary investor can not afford high volume transactions. When the price is reduced the investors are on the buying spree again.
By convention and by experience, the message is clear. A prosperous company only goes for this exercise. The company is doing great and probably it will prosper fast. So, it has become the habit with the investors and brokers to look out for such companies. These flag-ship companies and sure candidates for sharp rise in the share prices! One of the tangible advantages of the split is greater liquidity. This exercise by the company is considered as the sign of bullishness. It is seen in the market that the split means the company is doing extremely well and it is the sign of confidence about the future profit-results of the company. Immediately after the split, a short-term rally is seen, but the market does not take much time to stabilize and normalize. The least wanted development can also happen. If the expectations of the investors are not met and the share price falls, they will lose confidence and this may lead to further fall in the share prices.
Reverse split is another mathematical exercise. This practice is resorted to by a company under compulsion and not under happy circumstances. When this happens, a shareholder will have less number of shares for more prices. When the share price drops abnormally, to provide the semblance of respectability, this silent punishment is provided to the shareholders, by reducing the number of shares, thus increasing the price. This is done by the companies to avoid another unfavorable position. The rules in many exchanges are so framed that it will de-list the shares, when the price falls below the certain level continuously for 30 days.
In fine, stock split is a welcome exercise. It enhances the image of the company in the eyes of the brokers and investors and in real terms it has provided substantial gains to them in the past.
SogoTrade stock broker: Stock trading
Why to choose SogoTrade as your brokerage firm: online trading
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
How do dividends work?
Public corporations have the option of keeping all of their profits each quarter to re-invest in the company, or to distribute some or all of them to their shareholders as a dividend. Growing companies often need as much cash as possible to finance their operations, such as building new manufacturing plants or running marketing campaigns, so they prefer to re-invest their profits. Older, more mature companies that are not growing very much often pay a dividend. Dividends are usually paid out as cash but shareholders are sometimes given the option of receiving extra shares of the company.
How Often Dividends are Paid
Dividends are usually distributed on a fixed schedule, such as every quarter or every month, but special dividends may be distributed at any time. For example, a $4 per share annual dividend paid quarterly would be paid as $1 per share every three months. The Dividend Yield is often mentioned along with the dollar amount. This is simply the annual dividend divided by the current stock price. For example, a $1.00 annual dividend with a share price of $10.00 results in a 10% yield.
Important Dates
People often wonder when they need to own the shares in order to receive the dividend. Typically, you need to own the stock three days before the Record Date for U.S. companies. Here are some important dates:
Declaration Date
This is when the company's board of directors formally announces the dividend, its amount, the date of record, and the payout date.
Ex-dividend Date
This is typically two days before the Record Date and anyone who buys shares on this day or later will not receive this dividend. However, anyone who sells shares this day that were purchased before this day will still receive the dividend. Also noteworthy is that the share price will often drop on this day by an amount approximately equal to the dividend being paid as investors realize the assets of the company will be dropping by this amount.
Record Date
Every shareholder who is properly registered on or before this date will receive the dividend. In most countries, this usually just means you must own the stock before the Ex-dividend Date, which is why the Ex-dividend Date is mentioned more often than the Record Date.
Payment Date
This is when the checks are mailed or the dividends are distributed directly to brokerage accounts.
Taxes on Dividends
In the U.S. dividends are currently taxed at a 15% rate for most individual shareholders. For other qualified individuals it may be much less. Also, if dividends are re-invested, there are certain cases where the dividends will not be taxed right then. However, in most cases there will be some sort of tax involved.
The Power of Dividends and Re-investment
Albert Einstein once said the most powerful force in the universe is the power of compound interest. That concept can be applied to dividends when you choose to have them re-invested. When your dividend is re-invested, it itself will earn money (or shares) on the next payout. In this way, your dividends are compounding, and over time that can really pay off. Many public companies offer Dividend Re-Investment Plans, or DRIPs, so it is wise to check your holdings to see what options are available.
Short-selling and Dividends
If a shareholder has short-sold a stock paying a dividend, it is required that they pay the dividend out of their own pocket to the investor(s) the shares were short-sold to. It is somewhat complicated to explain the reasoning, so please do further research on this topic if interested.
Where to Find Companies with Dividends
Most financial websites list dividend yields for each company but you need to find a website that has a Stock Screener with the ability to search for dividends, such as Yahoo! Finance.
Nicholas Swezey helps people learn about the Stock Market on his site, http://www.HowTheMarketWorks.com
Article Source: http://EzineArticles.com/?expert=Nicholas_Swezey
How Often Dividends are Paid
Dividends are usually distributed on a fixed schedule, such as every quarter or every month, but special dividends may be distributed at any time. For example, a $4 per share annual dividend paid quarterly would be paid as $1 per share every three months. The Dividend Yield is often mentioned along with the dollar amount. This is simply the annual dividend divided by the current stock price. For example, a $1.00 annual dividend with a share price of $10.00 results in a 10% yield.
Important Dates
People often wonder when they need to own the shares in order to receive the dividend. Typically, you need to own the stock three days before the Record Date for U.S. companies. Here are some important dates:
Declaration Date
This is when the company's board of directors formally announces the dividend, its amount, the date of record, and the payout date.
Ex-dividend Date
This is typically two days before the Record Date and anyone who buys shares on this day or later will not receive this dividend. However, anyone who sells shares this day that were purchased before this day will still receive the dividend. Also noteworthy is that the share price will often drop on this day by an amount approximately equal to the dividend being paid as investors realize the assets of the company will be dropping by this amount.
Record Date
Every shareholder who is properly registered on or before this date will receive the dividend. In most countries, this usually just means you must own the stock before the Ex-dividend Date, which is why the Ex-dividend Date is mentioned more often than the Record Date.
Payment Date
This is when the checks are mailed or the dividends are distributed directly to brokerage accounts.
Taxes on Dividends
In the U.S. dividends are currently taxed at a 15% rate for most individual shareholders. For other qualified individuals it may be much less. Also, if dividends are re-invested, there are certain cases where the dividends will not be taxed right then. However, in most cases there will be some sort of tax involved.
The Power of Dividends and Re-investment
Albert Einstein once said the most powerful force in the universe is the power of compound interest. That concept can be applied to dividends when you choose to have them re-invested. When your dividend is re-invested, it itself will earn money (or shares) on the next payout. In this way, your dividends are compounding, and over time that can really pay off. Many public companies offer Dividend Re-Investment Plans, or DRIPs, so it is wise to check your holdings to see what options are available.
Short-selling and Dividends
If a shareholder has short-sold a stock paying a dividend, it is required that they pay the dividend out of their own pocket to the investor(s) the shares were short-sold to. It is somewhat complicated to explain the reasoning, so please do further research on this topic if interested.
Where to Find Companies with Dividends
Most financial websites list dividend yields for each company but you need to find a website that has a Stock Screener with the ability to search for dividends, such as Yahoo! Finance.
Nicholas Swezey helps people learn about the Stock Market on his site, http://www.HowTheMarketWorks.com
Article Source: http://EzineArticles.com/?expert=Nicholas_Swezey
Stock market success guide
When it comes to investing money through a reliable investment approach, most of the investors consider trading stocks as the most suitable option. Since lifestyles are changing, everybody is facing the need of extra income source; in such a situation, stock trading can prove to be very effortless and beneficial solution. In fact, stock trading is such a financial activity that assures every investor for easy financial resource. People, who are interested in investing their hard-earned money in stocks, can go for it without giving it a second thought but some basic knowledge regarding this sector is essential.
The very first question that comes in very investor's mind is what is stock exchange? Well stock exchange can be referred as a place, where all stock related activities are carried out; in simple terms, it is a market where exchanges in terms of money and stocks take place. Moreover, the stock exchange takes care of every activity that is related to buying and selling of shares and debentures. Stock exchange is open for every investor and it provides every investor with equal right to invest money. Since stock market has a very strong affect on the economy, it easily gets affected by frequent ups and downs of the concerned economy. Therefore, to deal with such minor complications, every investor should be very well-versed with the basic nature of stock and stock market.
People, who invest in stock market, make every deal through stockbrokers, as they know how to make every investment beneficial in fluctuating market. However, consulting such stockbrokers at some crucial points is sensible but unnecessary dependency should be avoided; that unnecessary dependency can be avoided by being aware about changes that are happening in the market. With involvement of online tools and techniques, things have become much easier for every investor, as now he can get the desired information just through few mouse clicks. So, why to worry? Online stock trading is there to inform every investor about the condition of his investments. Just relax and browse through websites that contain updated details of the market and analyze them to make a beneficial decision.
Some investors have the tendency of making rushed decisions which is very dangerous in trading stocks, as stock trade is highly variable market and changes do not stay here for a long time. When deflation or inflation crop up, every investor gets vexed and starts pondering over selling and buying of stocks to earn desired profit or to avoid loss, which is not sensible at all. Making such hasty decisions can lead to a big loss or sometimes, it can restrict the investor from taking benefit of upcoming rise. In fact, stock market investing is a very unpredictable affair and only those can survive and attain the desired profit, who keep their eyes and ears open. The same rule applies at the time of purchasing stocks, as level of profit very much depends on the market position of the issuer company therefore, make every decision assiduously, so that your investments may become your biggest financial strength.
SogoTrade stock broker: Stock trading
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
The very first question that comes in very investor's mind is what is stock exchange? Well stock exchange can be referred as a place, where all stock related activities are carried out; in simple terms, it is a market where exchanges in terms of money and stocks take place. Moreover, the stock exchange takes care of every activity that is related to buying and selling of shares and debentures. Stock exchange is open for every investor and it provides every investor with equal right to invest money. Since stock market has a very strong affect on the economy, it easily gets affected by frequent ups and downs of the concerned economy. Therefore, to deal with such minor complications, every investor should be very well-versed with the basic nature of stock and stock market.
People, who invest in stock market, make every deal through stockbrokers, as they know how to make every investment beneficial in fluctuating market. However, consulting such stockbrokers at some crucial points is sensible but unnecessary dependency should be avoided; that unnecessary dependency can be avoided by being aware about changes that are happening in the market. With involvement of online tools and techniques, things have become much easier for every investor, as now he can get the desired information just through few mouse clicks. So, why to worry? Online stock trading is there to inform every investor about the condition of his investments. Just relax and browse through websites that contain updated details of the market and analyze them to make a beneficial decision.
Some investors have the tendency of making rushed decisions which is very dangerous in trading stocks, as stock trade is highly variable market and changes do not stay here for a long time. When deflation or inflation crop up, every investor gets vexed and starts pondering over selling and buying of stocks to earn desired profit or to avoid loss, which is not sensible at all. Making such hasty decisions can lead to a big loss or sometimes, it can restrict the investor from taking benefit of upcoming rise. In fact, stock market investing is a very unpredictable affair and only those can survive and attain the desired profit, who keep their eyes and ears open. The same rule applies at the time of purchasing stocks, as level of profit very much depends on the market position of the issuer company therefore, make every decision assiduously, so that your investments may become your biggest financial strength.
SogoTrade stock broker: Stock trading
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
What is a stock?
Reading financial papers or watching a finance channel can be much more confusing than it needs to be if you don't know what a stock is. Stock is bought for the pursuit to make money, but what exactly is it and how does it make you money? We need to begin by explaining what a corporation is.
A corporation is a type of business entity. Other business entities include a sole proprietorship, which is run and owned by one person, and a partnership, which is usually run and owned by two or more people. A corporation is owned by many people. These people are called the company's shareholders. Each one of the shareholders own a part of the company. They elect the board of directors who hire the officers that run the company. While shareholders don't make decisions such as where to spend money and what to market, they do decide who will make those decisions.
In order to become a shareholder, you must buy a share of that company. This is called a share of stock. If you buy one share of stock of Apple, you have become an Apple shareholder. When you hear 'stock' this is actually a general term which could mean one or more shares. You can buy one share of stock, or you can buy a thousand shares of stock. It is up to you.
Why do corporations issue shares of stock? They issue stock to raise money for their company. The money they receive is referred to as equity and is used as capital for the company. For example, let's say company A decides to incorporate and issue stock. They may issue 100,000 shares of stock, sell them for $5 each, and raise $500,000 in capital for their business use. If you buy one or more of these shares, you will be part owner of company A.
How do stocks make money? They increase in value through supply and demand. If you buy one share of Company A stock for $10, you have a purchase price valued at $10. If a lot of people want to buy the stock, they will have to pay a higher price if there are fewer people willing to sell. It is this supply and demand principle that drives up the price of any product. The more demand the higher the price and the fewer supplies, the higher the price. If the value then goes up to $13, you can sell it and make a $3 profit.
You can also make money directly from the company in the form of dividends. If you have 100 shares of a company that issues a 25 cent dividend every quarter, you will be paid $25 every quarter, or $100 a year. Not all companies issue dividends every year.
If you want to learn more stock market investing basics, go to StockInvestingMadeEasy.info for more information.
Article Source: http://EzineArticles.com/?expert=Samantha_Asher
A corporation is a type of business entity. Other business entities include a sole proprietorship, which is run and owned by one person, and a partnership, which is usually run and owned by two or more people. A corporation is owned by many people. These people are called the company's shareholders. Each one of the shareholders own a part of the company. They elect the board of directors who hire the officers that run the company. While shareholders don't make decisions such as where to spend money and what to market, they do decide who will make those decisions.
In order to become a shareholder, you must buy a share of that company. This is called a share of stock. If you buy one share of stock of Apple, you have become an Apple shareholder. When you hear 'stock' this is actually a general term which could mean one or more shares. You can buy one share of stock, or you can buy a thousand shares of stock. It is up to you.
Why do corporations issue shares of stock? They issue stock to raise money for their company. The money they receive is referred to as equity and is used as capital for the company. For example, let's say company A decides to incorporate and issue stock. They may issue 100,000 shares of stock, sell them for $5 each, and raise $500,000 in capital for their business use. If you buy one or more of these shares, you will be part owner of company A.
How do stocks make money? They increase in value through supply and demand. If you buy one share of Company A stock for $10, you have a purchase price valued at $10. If a lot of people want to buy the stock, they will have to pay a higher price if there are fewer people willing to sell. It is this supply and demand principle that drives up the price of any product. The more demand the higher the price and the fewer supplies, the higher the price. If the value then goes up to $13, you can sell it and make a $3 profit.
You can also make money directly from the company in the form of dividends. If you have 100 shares of a company that issues a 25 cent dividend every quarter, you will be paid $25 every quarter, or $100 a year. Not all companies issue dividends every year.
If you want to learn more stock market investing basics, go to StockInvestingMadeEasy.info for more information.
Article Source: http://EzineArticles.com/?expert=Samantha_Asher
Are online brokerage firms safe?
If you remember the days of having to call up your broker on the phone or you remember movies from the 80s where they did so, you can probably appreciate a much easier system. Today, we can invest online. It is so simple to go to an online brokerage firm, place an order at your convenience, and watch the order being placed. You don't ever have to meet with a broker or investment professional if you don't want to.
Unfortunately, many people are still weary of this process, and with good reason. They are afraid of the security on the internet. I hear all the time about fraud on the internet. I've gotten emails from foreigners claiming they need me to help them transport money to the U.S. and they will give me a percentage, or that I have won some exorbitant amount of money that I need to claim right away. I feel bad for those who fall for these and get scammed out of a lot of money.
There are also other programs that claim they can make you money such as by stuffing envelopes or taking surveys, that leave you high and dry. A really big concern for most people is identity theft. They don't like using their credit card online for fear of their money and identity being stolen. These are all legitimate concerns and everyone should be careful with what they do on the internet.
The big problem with investing online is that you can put a lot of money in investments. When we start talking about our direct money, we really start to worry. Could someone steal my information and login to my account, stealing my money? Maybe they could make up a fake firm and take my money that way?
When looking for an online brokerage firm, there are several ways to protect yourself. First, only invest in a well-known, established company. Don't get pulled in by the low fees of new companies, they could be scams. If they're not, let everyone else test them out. Also, pick a firm that has many security features. Use a website that has a padlock symbol in the address bar for security. Use a company that goes on and on about there excellent security. Use a company that has several passwords and security checks. Use a company that is protected by the SIPC.
Sharebuilder is an excellent company with all these safety features. I have been using them for over 2 years and have never had any safety issues. They are protected by the SIPC and are also owned by ING Direct, another very reputable bank. To add more safety to your account, make sure you change your password at least once a year. Never log in to your account from another computer, if you can help it. Preferrably you will only use your own computer. Don't use a saved password feature on your computer in case someone else uses it. Always make sure you see the padlock. If there is anything suspicious, remove your money immediately, and finally, always monitor your account.
If you want to know how you can buy stocks online, go to StockInvestingMadeEasy.info for more information.
Article Source: http://EzineArticles.com/?expert=Samantha_Asher
Unfortunately, many people are still weary of this process, and with good reason. They are afraid of the security on the internet. I hear all the time about fraud on the internet. I've gotten emails from foreigners claiming they need me to help them transport money to the U.S. and they will give me a percentage, or that I have won some exorbitant amount of money that I need to claim right away. I feel bad for those who fall for these and get scammed out of a lot of money.
There are also other programs that claim they can make you money such as by stuffing envelopes or taking surveys, that leave you high and dry. A really big concern for most people is identity theft. They don't like using their credit card online for fear of their money and identity being stolen. These are all legitimate concerns and everyone should be careful with what they do on the internet.
The big problem with investing online is that you can put a lot of money in investments. When we start talking about our direct money, we really start to worry. Could someone steal my information and login to my account, stealing my money? Maybe they could make up a fake firm and take my money that way?
When looking for an online brokerage firm, there are several ways to protect yourself. First, only invest in a well-known, established company. Don't get pulled in by the low fees of new companies, they could be scams. If they're not, let everyone else test them out. Also, pick a firm that has many security features. Use a website that has a padlock symbol in the address bar for security. Use a company that goes on and on about there excellent security. Use a company that has several passwords and security checks. Use a company that is protected by the SIPC.
Sharebuilder is an excellent company with all these safety features. I have been using them for over 2 years and have never had any safety issues. They are protected by the SIPC and are also owned by ING Direct, another very reputable bank. To add more safety to your account, make sure you change your password at least once a year. Never log in to your account from another computer, if you can help it. Preferrably you will only use your own computer. Don't use a saved password feature on your computer in case someone else uses it. Always make sure you see the padlock. If there is anything suspicious, remove your money immediately, and finally, always monitor your account.
If you want to know how you can buy stocks online, go to StockInvestingMadeEasy.info for more information.
Article Source: http://EzineArticles.com/?expert=Samantha_Asher
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