How to Invest in Stock Market

0
444

A lot of people who wants to improve their financial situations are looking at the potentials in stock market investment opportunities but most of them didn’t even get to the first step due to lack of knowledge.

To potentially get yourself into this kind of lucrative yet unpredictable investment, there are a few important pointers to consider for beginners. First, you need to be able to answer some questions. If you can provide the answer to these questions then it means you are ready to get started.

  • What is a Stock?
  • What is a Stock Market?
  • What should I do to get started?
  • Who do I talk to to get started? How much money will I put in to get started?
  • Is it worth investing a small amount of money in stocks?
  • Do I really make money with stock market?
  • How much money will I make with stock market?
  • How long will I wait before I make money with stocks?
  • What are the legalities of stock market?
  • How are stock market taxed?

If you can’t answer all of the questions above,  it means you need to continue reading below to get a birds-eye view of stock market.

  • What is a Stock?
      • A Stock is basically a “Share” in a corporation. When you put your own money to a corporation/company, it means you invest your money which makes you an investor of that company.  When you become an investor, it means, you are a part-owner of a corporation. When you are a part owner, you will receive a share of your investment after the total assets and income is divided among share holders. The more money you put in, the higher the profit you get.
  • What is a Stock Market?
    • Let us first define the word “Market”. What is the meaning of Market in investing.? “
    • Market” is where buying and selling of stocks happen. This market is composed of stock holders who buy and sell stocks among themselves.
  • How`Stock Market works?
    •  If a corporation wants to earn more money, they decide to go out and sell their stocks to the public where stock buyers are looking for stocks to buy. This “public” is what we call the Stock Market. The company divide their shares and sell some portions to the public for a certain amount per share.
    • These companies are like groceries stores selling their products to the consumers. The products in this case are the stocks. Investors come to this market to look for good stock deals to purchase.
    • Like for example, Facebook. This is one of the companies who went out to the stock market to sell their stocks to the public.
    • In additional to the stock holders and investors, there are also third party individuals or companies who act in the middle. They are called Stock Traders.
  •  What is a Stock Trader?
    • A Stock trader may be an agent, hedger, arbitrageur, speculator or stockbroker.

LEAVE A REPLY

Please enter your comment!
Please enter your name here