Can anybody enlighten me more about stock market?

  1. profile image49
    Joye Dermadyposted 5 years ago

    Can anybody enlighten me more about stock market?

    I need to know about how the stock market works and I have a little information from my friends and through reading. Can anybody enlighten me more? Thanks.

  2. profile image48
    Rana Strakaposted 5 years ago

    I am assuming that you have the basic knowledge and I just want to add up a little bit more on how the stock market works. Now picture it that you are buying a piece of the company by means of buying shares. You get your shares by opening an account with a brokerage who then posts your order in market made so that buyers and sellers meet and all is put to an auction.
    To start in the process, open a trading account with the broker of your own choice. Now, in the form of commission, expect to pay about $10 dollars per trade along with the seed money that launches your account.

  3. LandmarkWealth profile image81
    LandmarkWealthposted 5 years ago

    That's quite a broad based question.  In short the stock market is a market place where anyone can buy as little a 1 share of any publicly traded company.  Companies most often go public to raise captial to expand.  They use investment bankers to raise the capital through a public offering.  Once the company is public anyone can buy stock and particpate in the wealth creation of a growing company.  You can own shares of Apple just like the CEO does.  ( Just likely less of them ).  Many foreign companies trade in US currency on US exchanges throguh ADR's.  That's simply a fancy term for buying stock in a foreign entity.  US companies are also traded on foreign exchanges. 

    As far as participating in the stock market goes, that should be done carefully.  You need to examine goals and time frame.  Once you have established those items you need to look at the best solutions for investing.  For most investors starting out, a portfolio of mutual funds and ETF's with the right risk level is most appropriate.