Can someone explain stock to me?

Question

can someone please explain to me what buying stock is? it's a confusing system, and i'm interesting in buying some.

Answer 1

stock is a kind of investment.

people give their money to companies, trusting that the company will do well.

each part of stock is called a share, because youre sharing part ownership of the comapny.

lets say you buy 10 shares of stock "A", each worth 1 dollar when you bought them

your stock would be worth 10 dollars

then lets say, company "A" does well in the next month, and the stock value rises to 3 dollars per share.

your stock would then be worth 30 dollars

you could then sell your shares to get the 30 dollars (for a profit of 20 dollars), or keep your shares and wait to see if the price will continue to rise. be warned that the price can drop, even to lower than what you bought it for, so you CAN lose money.

the stock market is pretty risky, so choose your stock companies carefully, and buy and sell at the right times.

Good Luck!

Answer 2

A stock is essentially partial ownership in the corporation split between a number of people. As part owner you are entitled to part of the profits that the company makes. However, the vast majority of companies don't split up the profits- instead they reinvest them into growing the company. Since these shares of the company are on the open market you can buy and sell them as you please. When a company is increasing profits the share price should rise as people are bidding up the shares to own a piece of the profitable company. Similarly, if the future looks bleak for a company, people will sell the shares, sending the price lower. This is just a very basic over view. You need to do a LOT of research before buying stocks with any sort of confidence.

Answer 3

A stock is a certificate of ownership in a corporation. It is the same as a share.Owning stocks in a company makes you part owner of that business. If the company is successful the value of the stocks will rise or it will be able to pay a higher annual dividend. The better the company does, the better the investor does.

Check out the following link:

http://ezinearticles.com/?How-To-Buy-Sto...

I hope this helps.

Answer 4

its like buying thousands of candies from a store and selling em on ur price.....instead u have stock where u buy and sell....