Your Own Stock Market

[selena1]

For those that are new to investing, learning the lingo that is used on Wall Street and in economics classrooms around the globe is essential. When you hear the phrase "stock market" you get a vague picture of a group of men and women running around like crazy people with slips of paper in their hands and yelling out numbers and words that you can't quite make out. To understand what's going on, let's start at the beginning and find out what stock is.

Stock can be described as the wealth (or capital) raised by a company or a corporation from the issuance of shares.

If you own stock in a company, say Microsoft, that would make you a shareholder in Microsoft. If you take all the shares available from Microsoft, or any other company and put them together, that is called Microsoft's market capitalization. This is figured by multiplying the current price of a stock times the number of shares.

Stock falls into four major categories. There is common stock, preferred stock, duel class stock and treasury stock. Common stock is, just like the name says, the most common kind of stock available. Ownership of common shares usually comes with some voting rights when it comes to decisions made by the corporation. Preferred stock is different from common stock in the sense that they usually get paid more dividends and usually come with extra rights and decision making abilities for the company they are for. Dual Class stock is a combination of the previous two kinds of stock and the rights attached to each share vary. Finally, treasury stock are shares that were once issued to the public, but have since been bought back by the company.

 

[marym]

That's a great explanation of what stock is and the different types of stock available. It's important for new investors to understand these basic concepts so they can make informed decisions when investing in the stock market. It's also important to note that the value of stocks can fluctuate based on a variety of factors, such as company performance, economic indicators, and global events. As with any investment, there is risk involved, and it's important to do your research and seek professional advice before making any investment decisions.

 

[HOLA]

In addition to the types of stock, it is important to understand the concept of a stock exchange. A stock exchange is a platform where shares of publicly traded companies are bought and sold. The most well-known stock exchanges are the New York Stock Exchange (NYSE) and the Nasdaq.
When you buy or sell a stock, you are doing so on a stock exchange. The price of a stock is determined by supply and demand - if many people want to buy a stock, the price will go up, and if many people want to sell a stock, the price will go down.
It is also important to note that buying and selling stocks comes with risks. The value of a stock can fluctuate greatly based on a variety of factors, including the overall health of the economy, the performance of the company, and even political events. It is important to do your research and understand the risks before investing in the stock market.