Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you.
Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.
To understand the stock market you first need to understand what stocks are.
Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money was taken in from those becomes the company’s stocks.
There are several major stock exchanges in the world where shares are traded. The company’s stocks are increased and decreased each day.
One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States-based stock market. It’s the world’s first electronic-based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.
Another large stock market that is United States-based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is what they are referring to. Many stocks are introduced on the Dow.
Many other countries also have a great impact on stocks. In Europe almost every country has its own stock market this includes Portugal, Germany, and Lisbon. The people living and working there follow invest in the stock market there and just like in North America the stocks rise and fall.
The people who handle the buying and trading are called stock brokers Now you can have your own dashboard and make your own choices. Their job is to sell and trade the shares that their clients request. It’s a demanding and rewarding job being involved directly in stocks this way. Stockbrokers can make a lucrative income and the ones that study the markets and understand all the ups and downs have a definite advantage.
For the everyday person to get involved in stocks they need to do a bit of research. It might be wise if a large amount of money is involved to talk to a stockbroker. Their job is related to stocks and no one is better qualified to assist you.
Stockbrokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit.
Stockbrokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit. Often a stockbroker has extensive knowledge with just a few stocks and he concentrates on those. If you decide to invest in a share that a certain stockbroker is very well versed in, it might be prudent to have them handle your dealings. They can offer the best advice as to when to buy and when to sell.
There are other avenues available for people interested in stocks and that’s the online stock trading companies. Many of these companies allow anyone to sign up and buy and trade their own shares. This can be a great way for someone to be introduced to the world of stocks and with some research and practice, they can make themselves a profit.