| Stock investing can quickly turn into an arduous | | | | procedure, you will need to have an account with a |
| process if you enter the world of equity trading | | | | stock broking firm and they will initiate the |
| without gathering information on stock market basics. | | | | transactions on your behalf. Stocks are listed on |
| These fundamentals are essential regardless of the | | | | various stock exchanges so you need to ensure that |
| type and the volume of your stock trade, so it is | | | | you are dealing with a firm that will allow you to the |
| imperative that you learn about them to get the | | | | buy the stocks of the specific company that you are |
| most out of your investments. To get started, let's | | | | looking for. |
| look at some of the stock market basics, once you | | | | You don't need to own a physical piece of paper; |
| have mastered the fundamentals of stock trading | | | | shares are electronically sold and purchased and the |
| you can sign up with a website that offers free | | | | logs of the transactions are maintained electronically. |
| stock market game and invest virtually to hone your | | | | If you have a computer and access to the internet, |
| skills before you put your money in the equities | | | | you can keep a tab on your investments from |
| market. | | | | anywhere in the world. |
| What is a stock or a share? | | | | How can you make money by investing in stocks? |
| Stocks in the investment environment refer to a | | | | There are two ways to make money through stock |
| share or a part ownership in the company that issues | | | | investments, if you purchase blue-chip stocks |
| the stock. A publicly owned organization has two | | | | (companies that are reliable with steady growth and |
| ways of funding their commercial activities; they can | | | | there is very little fluctuation in the share prices), you |
| either take a loan from a financial institution; in which | | | | can get dividends. Alternatively, you can make |
| case they will have to pay the interest on any such | | | | money by trading in stocks; that is if you were to |
| loan; or they can issue stocks and collect money | | | | sell a stock at a higher price than the purchase rate, |
| from people who would like to own a share of the | | | | you will make a capital gain in the trade. It may take |
| company. There are two ways to procure funds; the | | | | a few days, months or years for the price of a |
| company can issue bonds; this is similar to a loan but | | | | stock to move upwards or downwards. |
| as opposed to a lending institution the money is being | | | | Where else can you get information on stock market |
| borrowed from the public and the company is liable | | | | basics? |
| to pay interest on the maturity of such bonds; the | | | | There are several websites and other sources of |
| other way is to issue stocks. While some companies | | | | information that you will need to go through to learn |
| will pay you your share the company's profits in the | | | | stock market basics and start investing confidently. |
| form of dividends; depending on the type of stocks | | | | Fortunately, there are several resources like websites |
| that you own; this is not mandatory. You can own | | | | and e-books online that offer in depth information |
| the stocks of various companies simultaneously as | | | | about stock market basics. Finally, start with paper |
| long as you have the money to fund such purchases | | | | trading before investing your hard earned money; |
| and you have a brokerage account. | | | | there are several sites that will let you invest virtual |
| How can a person buy shares? | | | | money in a virtual environment and the practice will |
| Buying shares is a fairly simple and straight forward | | | | prepare you for the boiler room. |