Could someone please explain the whole entire stock market thing to me?

Question

Hi, I know this sounds like a really dumb question, but I really have no idea how the stock market works... What are shares? How does the stock market go up and down, how many shares are in one company? How many companies have shares? Can you invest more money in one share in one company than another person who invests less money in the same company? I am really lost, so please, please try to explain it to me? Thank you so much!

Answer 1

Buy low and sell high or buy high and sell higher.  Go to investopedia.com and do searches on the topics you are interested in.  

Answer 2

I will try to explain. Any company that say LTD. Or PLC, is a limited company and has shares. i could be a small limited company with only about 1000 shares: or a large cmpany with several million sharesd How much the company does in the things iit sells and how much profit it makes, will determine the price of the shares. If it makes a lot of money it will at the end of its financial year pay each of its share holders a share of that profit called a dividend. If it makes more the following year tthe share price goes up. if it makes less profit the price of the shares go down. If you want to buy shares in the stock market you have to have a stock broker. his job is to buy shares for you and he wll charge a commision, usually around £20 a deal. then you will pay a tax on top of that to the government.

You will need an investment in several companies and that ia called a portfolio, so that if some go down and some rise up you have a balanced portfolio.

You will need therefore a lot of capital to begin with.

I am a stock dealer and have MANY £1000s at stake avery day.

This is abrief exlpanation. if you want more get back to me.

  

Answer 3

What are shares? :: Any busuiness need capital to start off and work on . When a set of people register themselves Under Companies act to form a Corporate status legaly where with the liability of owners is JUST limited to the shares he Subscribed .Share is a divided Portion of Capital in a Ltd company owned by an Individual share holder . The value of Shares will be fixed for each corporate bodies .

How does the stock market go up and down, how many shares are in one company?  :: Just it is simple theory of Demand and supply - when there is more supply than deman prices comes down  and vice versa

How many companies have shares?

All corporate bodies other the so called Guarntee companies have shares

Can you invest more money in one share in one company than another person who invests less money in the same company? ::

In a particular company the value of share is FIXED . So no question of Investing More money than Invested by another . Of cource the price at which you buy the share in share market could be different . It all roles on in the market . Again Shares if Issued at PREMIUM the payment can be at differentiated price for the same amount .

But the results in the case of divident declaration is the same and the Premium paid is not counted on , also the same for voting .

But You can have more number of shares than another one .

THanks and all the best

Answer 4

You asking a question(s) that really can not be responded to in this short amount of space.  But if you really are serious in learning about the market(s) I submit the following

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by  William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

http://www.investorshub.com/  http://www.1source4stocks.com/