We've all heard the stories of friends who lost everything when the tech bubble burst in 2000 or when they put all of their money into one company's stock only to see the company implode, like Enron. But your stock investing experience doesn't have to be anything like that. With a little education and a lot less hype, you can be just a little bit more like Warren Buffett and a little bit less like you best friend's second cousin, Kenny, who still can't believe his sure-fire investment in MCI WorldCom didn't pan out.
Profitable Stock Investing:
We believe stock investing should be fun, exciting and profitable. Of course, stock investing is going to be the most fun when you're making money.
Before start investing in Stock Markets, you must have a well defined answers to the following questions:This stock investing course will help you answer the basic questions you need to ask yourself to become a successful stock investor. Questions like:
- What investments are right for me?
- What type of investment account is right for me?
- What investment broker is right for me?
- How does the stock market work?
- What are the benefits of investing in the stock market?
If you can answer these questions, you're 80 percent of the way to becoming a successful stock investor. You don't have to make it any more complicated than that.
Stock Market:
Stocks are the building blocks of the stock market. If there weren't stocks, there wouldn't need to be a stock market and you wouldn't need to worry about learning how to invest in it. Luckily for you, there are stocks, there is a stock market and you can learn how to invest in it.
So what is a stock? In it's simplest terms, a stock is a certificate that designates ownership in a company.
When you buy a share of stock, you literally become an owner of whatever company the stock you bought represents. If you buy a share of stock in General Electric, you become an owner of General Electric. If you buy a share of stock in Google, you become an owner of Google.
Stock Shareholder Rights:
As a stock holder (i.e. owner of the company), you have certain rights.
- You have the right to vote for members of the board of directors
- You have the right to receive dividends if the company distributes them
- You have the right to sell your stock
Why Companies Issue Stock?
Companies need money to operate, and they can raise that money in one of two ways: they can borrow the money (debt) or they can sell ownership in the company by issuing stocks (equity). Each method for raising money has its pros and cons, but when you boil it down to the basics, it looks like this. When a company borrows money, it has to pay that money back. When a company issues stock, it doesn't have to pay anything back.
Why Would You Buy Stock?
You should buy stock for one reason only: you hope it will make you money. When you buy a stock, you can make money in one of two ways:
- You can receive dividend payments from the company
- The stock can increase in value and you can sell it for a higher price
Both methods of making money from owning a stock are beneficial to you as an investor. Of course, you need to always remember that you can also lose money when you buy a stock, but hopefully you can keep that to a minimum.
