| You finally have some savings put away and would | | | | commissions were paid. Often, investors will simply |
| like to earn more than three percent in a savings | | | | take their profits and re-invest in additional shares of |
| account. You think that stock market trading sounds | | | | the same company. They can also sell their initial |
| like an excellent way to invest your savings. You are | | | | shares for investment in another company. |
| armed with money and a great idea. Now, what do | | | | There are also ways to make money on more |
| you do? | | | | complicated calculations such as call and put options. |
| How Does Stock Market Trading Work? | | | | These particular options are for seasoned veterans |
| Stock market trading allows anyone to buy a part of | | | | of stock market trading. You can also get what are |
| any company that lists its stock shares for sale to | | | | called stock dividends. Instead of being paid in cash |
| investors. The stock market raises operating capital | | | | for the increased value of a share, you can receive |
| for a company to use to keep producing their | | | | more shares of the stock, known as a dividend. |
| products or services. Many stocks offered by a | | | | Brokers vs. Brokerage Accounts |
| company are grouped into operating exchanges. | | | | Most discount stock market trading brokers charge |
| These exchanges have an overall performance | | | | between $7 and $ 25 to maneuver the stock market |
| indicator. Many national economy indicators are led by | | | | for you. Since you pay this fee when you buy a |
| the major stock exchanges of that country. Some of | | | | share of stock and again when you sell, you must |
| the more popular exchanges include: the New York | | | | factor in a broker's contribution value against your |
| Stock Exchange, NASDAQ and the S&P 500. | | | | potential profit margins. Full service consulting and |
| Shares | | | | freight brokers distribute substantially higher fees for |
| Think of stock shares as individual pieces of | | | | their services. |
| ownership in a company. An investor purchases these | | | | Many investors, particularly those with less disposable |
| small pieces of a company. These sales create capital | | | | income to invest in the stock market, prefer to do |
| that the company can use for expansion or | | | | their own research instead of paying the higher costs |
| operation. If the company produces a profit, the | | | | associated with full-service brokers. With a little work, |
| shares purchased may often increase in value. | | | | you can choose an online service that best suits your |
| Sometimes, a company will announce a split. A split is | | | | needs. Check the minimum balance and transaction |
| when a stock share turns into two stock shares and | | | | costs to determine which brokerage firm best fits |
| the value is cut in half. This leaves investors with | | | | your budget. The Securities and Exchange |
| more stock shares. Throughout the lifetime of a | | | | Commission offers an important set of warnings |
| company, the shares of stock may have experienced | | | | about online brokerages to help you distinguish the |
| many splits. | | | | real services against scams. |
| Making Money | | | | Stock market trading is a very complex set of highs |
| Most money made in stock market trading involves | | | | and lows, buys and sells and fees and commissions. |
| selling shares at a higher price than when they were | | | | Do as much research as possible on stock market |
| purchased. If you purchase a share at fifty dollars | | | | trading to discover the best niche for the type of |
| and sell it at seventy dollars, you would make a | | | | investing you are comfortable with. |
| twenty dollar profit on the share before any fees or | | | | |