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What's A Stock Market?

This is a discussion on What's A Stock Market? within the On Topics forums, part of the On Topics category; I've created this thread in order to help anyone understand the concept of the general idea of the stock market. ...

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Old 06-24-2008, 08:29 AM   #1 (permalink)
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Default What's A Stock Market?

I've created this thread in order to help anyone understand the concept of the general idea of the stock market.

The stock market is basically something that is used to represent publically traded companies. All of these companies are not owned by 1 person specifically but by a large amount of people who buy the companies 'stocks' or shares. Shares are the representation of ownership in a business. For example, If I bought 1 share of Disney, I would actually be a part owner of Disney! Now I don't have all the power to go firing all of my employees and making the parks free, but I do have a small say in what happens in the business. Anyways, people can buy shares from companies through others that are selling their shares. And by selling those shares, the people make profits.

One of the main uses of the stock market is to gain money, and the most basic method of that is this: Buy low, sell high. Buy shares at low prices and sell them when/if a business grows when the stock prices are expensive. That right there is the main philosophy of trading stocks.

If you're willing to take a risk and make a bundle, you should take a deeper look into the stock market. It's a great way grow stronger financially and ethically.

Quick Tips:
1. Buy low, sell high
2. Give your stocks time to grow and lull, don't sell instantly.
3. Be prepared for the worst at ALL times.
4. Let your portfolio grow. Buy multiple shares in your company for bigger pay offs.
5. Diversify! Sometimes your favorite companies don't do well, and it's a necessity to have invested in other companies to back up debt.


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Old 06-24-2008, 09:43 AM   #2 (permalink)
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Thats a good explanation. The part about having a say in the business is true but in reality its the Board of Directors that call the shots and they decide at the AGM (Annual General Meeting) how to reward their shareholders.

Remember the Board of Directors are not owners of the company, they are merely payed to call decisions.

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Old 06-29-2008, 08:32 AM   #3 (permalink)
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Quote:
Originally Posted by F1rsTxLas7 View Post
I've created this thread in order to help anyone understand the concept of the general idea of the stock market.

The stock market is basically something that is used to represent publically traded companies. All of these companies are not owned by 1 person specifically but by a large amount of people who buy the companies 'stocks' or shares. Shares are the representation of ownership in a business. For example, If I bought 1 share of Disney, I would actually be a part owner of Disney! Now I don't have all the power to go firing all of my employees and making the parks free, but I do have a small say in what happens in the business. Anyways, people can buy shares from companies through others that are selling their shares. And by selling those shares, the people make profits.

One of the main uses of the stock market is to gain money, and the most basic method of that is this: Buy low, sell high. Buy shares at low prices and sell them when/if a business grows when the stock prices are expensive. That right there is the main philosophy of trading stocks.

If you're willing to take a risk and make a bundle, you should take a deeper look into the stock market. It's a great way grow stronger financially and ethically.

Quick Tips:
1. Buy low, sell high
2. Give your stocks time to grow and lull, don't sell instantly.
3. Be prepared for the worst at ALL times.
4. Let your portfolio grow. Buy multiple shares in your company for bigger pay offs.
5. Diversify! Sometimes your favorite companies don't do well, and it's a necessity to have invested in other companies to back up debt.


Questions/Corrections?

that's good but now days the stock market is falling like an person falls from the top of the hill .
the whole area where people get profit is now over and nowadays many of them were simply make a loss and started to get exit from the market
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Old 07-09-2008, 10:57 AM   #4 (permalink)
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Pretty basic summary of the stock market, and 'buy low and sell high' is common sense no?

Useful to extreme beginners, I guess.
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Old 07-17-2008, 03:28 PM   #5 (permalink)
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Kinda agreed but for the terms buy low, sell high is useful for understanding the concept only when later surely youll hit with kinda question like when is low? n vice versa.. Stock market need good understandin in fundamentally and technically overall..
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Old 03-16-2009, 01:25 PM   #6 (permalink)
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Default stock market investment objectives

Before investing in any stock of the stock market, make sure you understand your investment objective. Do you want

1. Regular income through dividend payments of your selected stocks

or

2. Capital growth to your selected stock.

The attitude required for investment in any one of the above objectives is different. So decide your objective and then invest.
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Old 12-02-2009, 10:30 PM   #7 (permalink)
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and now i finally know.. thank you, you deserve it!
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