Stock Market For Dummies
Stock Market for Dummies – Basic Explanation of Stock Market Terms
Most of these terms are used in other sectors of the business world. However, they all mostly mean the same thing in the stock market as well. For dummies (stock market dummies of course) who know very little to nothing about these terms, at the end of this article, it should be clear to you what each means. They are:
- Stocks – You, probably, often hear that new stocks or shares are issued everyday by a number of companies, but still the question “what is a stock, and why do companies issue it?” remains. The answers to the questions are simple: 1. Stocks can easily be defined as a tiny fraction of the company that’s up for sale to people like you. 2. Companies issue stock as a means to raise money to help finance the smooth running of their daily productions and activities. Clear enough? It should be since this is a snippet of what there is for stock trading for dummies.
- Capital – Just like every other business situation, in stock trading, the term capital is used to describe “the money invested by companies or individuals to start a business”. If a company issues a stock before it begins operations (highly unlikely except among individual acquaintances), then the revenue generated by selling the stocks could be seen as the capital required for starting the business.
Equity and Debt – Since this article is about stock trading for dummies, you’d easily be forgiven for wondering what these terms, especially “Equity”, means. Basically, there are two ways of which companies can raise money. They can do this by either selling all their stocks to get the required resources or by borrowing money with promise to pay it all back later with interest. The
- first methodology is called Equity while the other is called debt. Most companies, or even individuals, do as much as they possibly can to avoid debt; which is why they offer their stocks in the stock market to begin with.
As far as this stock market for dummies article goes, the main benefit of stock trading is that shareholders are eligible to share in the profits of the company. In addition, if the price of the stock rises, stockholders also benefit from it, especially if they choose to sell their shares at that point.
About the Author
The Weekly Momentum Stock Trading System
Trade Once a Week for Big Profits
Free ebook “The 7 Habits of a Highly Successful Trader” Here
http://www.stressfreetrading.com
How the Stock Market Works for Dummies
|
|
Stock Market for Beginners – How Does the Stock Market Work $19.99 Once you start investing…….YOUR MONEY is at risk!”Stock Market for Beginners – How Does The Stock Market Work”? will take out all the mystery behind investing in the market and expose the bare basic facts so you will be ready to tackle the stock market without stress or agitation and make SMART decisions and PROTECT YOUR MONEY!By tomorrow you could be making your first investment, or you could… |
|
|
Introduction to Options Trading $24.95 Most average investors buy and sell stocks thinking that is the only way they can make money in the capital markets. Trading options on those same stocks gives everyday investors opportunities to get a “bigger bang for the buck,” meaning that you can make more money by trading options on the same stock. Where a good profit in a stock trade may mean a 10 – 15% profit, an option on the same stock … |
|
|
Million Dollar Challenge: Learn, Trade & Win! Game teaches trading principles in a fun and inventive way. – Stocks & Commodities Magazine $29.00 BEGINNER INVESTING: Learn the fundamentals needed as a beginner investing in commodities with the Million Dollar Challenge. Build confidence and help eliminate losses! Reading a book on the fundamentals of investing in commodities trading can only get you so far. Learn how to comprehend indicators, digesting market news, and good timing, all part of being a successfule trader on Wall Street. EXP… |
|
|
Stock Investing For Dummies $11.47 Stock Investing For Dummies, 3rd Edition includes information on stock investing in both bear and bull markets; unique investment segments; stock investing for different types of situations; and examples straight from the real world of stock investing as they have occurred in the past three years…. |
|
|
The Neatest Little Guide to Stock Market Investing, 2010 Edition $9.05 The essential stock market guide updated with timely strategies for investing after the crash Now in its fourth edition, Jason Kelly’s The Neatest Little Guide to Stock Market Investing has established itself as a clear, concise, and highly effective guide for investing in stocks. This comprehensively updated edition contains tried-and-true investment principles to teach investors how to create … |
|
|
You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits $6.81 Fund manager Joel Greenblatt has been beating the Dow (with returns of 50 percent a year) for more than a decade. And now, in this highly accessible guide, he’s going to show you how to do it, too. You’re about to discover investment opportunities that portfolio managers, business-school professors, and top investment experts regularly miss — uncharted areas where the individual investor has a hu… |
|
|
Wizetrade Stocks $198.00 Learn to trade the stock market with Wizetrade!Wizetrade Stocks is the flagship product of our easy-to-use software suite, transforming complicated market data into easy-to-understand red and green lights and charts. Wizetrade has worked hand-in-hand with over 130,000 investors, empowering them to be confident traders with its powerful software, personalized training and one-on-one support.Please … |
