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The Stock Market Explained! Finance Articles | May 19 Cheap Derek Wolfe Jersey , 2005
Let?s briefly describe The Stock Market for those who are new to the ... world. What is The Stock ... is by ... a market in which shares of ... stocks are bought and sold. Let


Let?s briefly describe The Stock Market for those who are new to the financial world.

What is The Stock Market?
It is by definition a market in which shares of companies stocks are bought and sold. Let me explain this. When companies start growing they need to find investors willing to invest on the company. They need to rise money to keep buying machines and products and to expand their businesses. At the same time many investors want to find companies where they can invest their funds, so they can receive passive income from the growth of those companies, which usually cause a growth on their portfolio of invested funds.

How is The Stock Market organized and why?
Companies discovered a long time ago that the most profitable, easy Cheap Chris Harris Jr Jersey , fast and effective way to find the investors is through an organized system, in which there is liquidity, and through which all interested individuals could bring in funds to keep developing their businesses and enterprises. That originated The Stock Market, which have been evolving and improving for a long time. People can trade and invest on this market through Exchanges. For example the New York Stock Exchange Cheap Emmanuel Sanders Jersey , or the American Stocks and Options Exchange. Exchanges are regulated agencies, which facilitate the transactions between buyers and sellers and ensure the fairness of each transaction for everyone. Stockbrokers also facilitate transactions for their clients and earn a commission for doing so.

What is the difference between a trader and an investor?
On this market like in many others you can be and investor or you can be a traderspeculator. Investors are corporations or individuals that want to invest an amount of money, usually a large amount, and keep on the market for a while to profit from a long term trend. They want to grow their money Cheap Demaryius Thomas Jersey , but they also want safe investments. They are not gamblers. They usually have large amounts of available funds so they can afford to leave their money on the market for months and some times even many years (2-5 years and more). Traders and speculators usually want fast profits. They may or may not have large amounts of available funds for trading and even if they do, they don?t want to risk them too much. This is because traders usually take considerably higher risks than investors do. Many of them not only trade shares of stock, but also derivatives. I explain that bellow. To get bigger profits they incur in biggest risk. Many of them are those that want to become rich in a few months. They want higher than average results. In fact they want the highest possible results. Many traders and speculators loose all their money on The Stock Market while others make fortunes. I think that knowledge, sound reasoning and common sense are three major factors affecting the outcome of any financial decision that you make.

What are stocks Cheap Royce Freeman Jersey , stock symbols and stock shares?
The term stock usually refers to the name of the company or symbol. For example the stock symbol for Microsoft Corporation is MSFT. When you want to check quotes or check the graphics on your account you enter the stock symbol and get all the information. What are traded through exchanges are shares, shares of stock. A share is a piece of ownership. Think about this as a pizza where the pizza is the stock or the company and every slice is a share. There are companies with millions and millions of shares, (slices) while others have less shares. When you buy, sell invest or trade Cheap Bradley Chubb Jersey , you are commonly dealing with the companies shares. Usually if the companies increase in value, you make money. If the stock price rise you make money (If you have a long position, which means you bought the shares). Other factors could affect your profits also like news, rumors and market sentiment.

Do I need a stockbroker to become a trader or investor?
You can seek the advice of a license professional Cheap Von Miller Jersey , a stockbroker, or you can trade by yourself using the Internet. There is an increasing number of individuals that are investing and trading from the comfort of their own house. To do it by yourself you will need to sign up with a brokerage firm like E*Trade or TD Wareh