| You will find stock investing very difficult and you | | | | to buy. |
| likely won't make much money if you don't know the | | | | You no longer need to own the physical piece of |
| stock market basics. These basics are important to | | | | paper stock as it used to be. Now you own it |
| get the most out of your investment. If you aren't | | | | electronically. With an online account, you can easily |
| well educated, you won't have any idea what you | | | | check your investments as long as you have a |
| are doing. Here are some stock market basics to get | | | | computer with internet access. |
| you started. To further help you learn about the | | | | Owning stocks gives you a few privileges. You are |
| markets, sign up for a free stock market game to | | | | allowed to go to stockholders meetings and vote for |
| get started in the markets risk free, below. | | | | board members. Most people don't go to these |
| What is a Stock? | | | | unless they low a large stake in a corporation. You |
| When referring to stock in an investing atmosphere, | | | | can also get paid quarterly dividends from the |
| stock is actually broken up into shares. A company | | | | corporation if they are issued. |
| will decide to issue stock when they decide they | | | | How do you Make Money with Stocks |
| need the money to fund their business. They will | | | | Other than getting dividends, you can make money |
| have the choice to issue bonds, which is basically | | | | from stock through capital gains. This is quite simple. |
| borrowing money, or issue stock. | | | | When you sell a stock, if you sell it for more than |
| Shares of stock are not loans like bonds. It is equity. | | | | you paid, the difference is what you earn. When you |
| When you buy shares of stock in a company, you | | | | buy stock, your main motive is to see the value of it |
| essentially own part of the company. You will pay a | | | | increase over time. This may be a couple days, a |
| price for that stock based on the market. You can | | | | few months, or several years. It all depends on your |
| own shares of stock in all the companies you want | | | | strategy and how the stock is doing. |
| as long as they are public companies and you have a | | | | Other Resources for Stock Market Basics |
| brokerage account. | | | | This is far from all the stock market basics you need |
| How do you Own a Stock? | | | | to know before you start investing. You can learn a |
| Owning stock is simple. First, you need to set up an | | | | lot by reading books and surfing the web. Another |
| account with a brokerage firm. Then, you can place | | | | great way to learn even more is by real practice. |
| an order to buy stock. Stock is sold on many | | | | Instead of risking your own money, you can start |
| different stock exchanges, so you have to be sure | | | | practicing for free with a free stock market |
| that the brokerage firm you are working with will | | | | simulation game. This allows you to get real |
| allow you to buy the specific stock you are looking | | | | experience without risking your own money just yet. |