Can someone please explain the stock market and how it works?

Question

I want to understand it and research it in depth.

I will give best answer. Thanks!

Answer 1

Take a stock like wal-mart. They make a offer to sell stock. A broker sets it up. Mr Walton buys shares of his company and so do many other people. At the end of the year there is a profit. They share the profits.  

Answer 2

investopedia.com

yahoo finance

Answer 3

Pick an area you are interested in, this way you will know something about it.  There are stock research tools at msn.com.  You can generate a list of stocks in this industry.  Compare price to sales and looking at price history.  Read Wall Street Journal.  Most important.... Buy Low, Sell High.

Answer 4

When a privately held company needs capital to grow its business, they might decide to become a publicly traded company by issuing stock.  An investment bank aids the company by helping to determine how value its stock offering will be to the public, and then an IPO (initial public offering) is set up.  The company then becomes listed on one of the exchanges (NYSE and NASDAQ are the two biggest in the U.S.).  The company's stock then begins trading, and its price goes up or down depending upon what the public thinks the value of the company is, given how strong its earning power is, its balance sheet, etc.  The stock price goes up and down because there are varying opinions as to the value of the company.  If it goes up, there is more demand for the stock than supply and more people willing to buy at higher prices than are willing to sell(a company has a fixed number of shares trading at any given time).  If it goes down, then the company is out of favor and there are more people that want to sell their shares than those that are willing to buy.  

I hope this helps!

Scott Cole

www.kungfutrader.com  

Answer 5

No one will every be able to give you an understanding of how the market works in this type of media, but I can give you some directions.

Here's some websites for you

MSN Money provides a great deal of information and assistance any one would need to keep abreast of the market and providing investment ideas. http://moneycentral.msn.com/home.asp

Yahoo Finance, is a site that's easy to use and provides much need information. http://finance.yahoo.com/

Other sites you can visit

http://www.investors.com/?tn=top

http://investorshub.advfn.com/default.as...

http://www.thestreet.com

http://www.brokerage101.com/

http://www.1source4stocks.com/

http://stockcharts.com/

http://www.grahaminvestor.com/

http://www.morningstar.com/

If any of these site provides free information, take it every little bit helps in your education.

Answer 6

Here's a good place to start:

http://money.howstuffworks.com/personal-...

Answer 7

Head on back to high school sweetheart, and sign up for economics class this time.

Answer 8

If you are new to the stock market, some research is necessary to be done on your part.

There are several companies' shares available in the market. Many are promising and some others are not that much profitable. How will you choose the best company shares in order to earn maximum profits? Well, it's a million dollar question, but the answer is quite simple. Until and unless you get familiar with the stock market, you cannot find the answer to the million-dollar question. Yes, market knowledge is a must for all who are planning to invest in stocks.

The good news is that Internet based trading is very simple and hassle free. Anyone can invest in stocks at any point of time. There is no lock-in period and constraints unlike other investment options available in the market. However, in this kind of investment, you need to do some groundwork. Initially, if you plan well and gain adequate knowledge about the functioning of the stock market, you can definitely reap the benefits from your investment.

Try the below url:

http://www.sogotrade.com/help/faq.aspx.....

For New visitors, it has extensive information available like:

How do I get started?

How do I fund my account to buy stock?

and Investing section gives information like:

How does the stock market work?

What are the risks and advantages of investing in the stock market?

How do I choose what to buy?

What are some tips for beginning investors?

The following tutorials might be helpful to you:

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The below tutorial will help you get to know how stock trading works

http://ezinearticles.com/?How-Do-The-Sto...