All You Need To Know About The Stock Market

Have you ever watched a newscast? I know that’s a silly question. Of course you have, right? And you’ve noticed that line of numbers running along the bottom of your screen. You probably told yourself that’s just stock market stuff, and ignored it. Some where out there, someone else is glued to that ‘stock market stuff’ because it can make them a bundle. Yes, fortunes can be made on the stock market, but they can also be lost of you don’t understand some basic concepts.

First of all, the stock market deals in the trading of shares. Shares are the units actually offered by companies on the stock market, and the money that the company makes from these sales are called stocks. So you don’t actually by any company’s stocks. What you actually buy on the stock market are shares, which is why you’re referred to as a shareholder.

There are a number of major stock markets globally, but the most famous stock market is undoubtedly the NASDAQ; the first electronic based stock market. This stock market is based in the United States and has the distinction of trading more shares daily than any other stock market in the world. Therefore, it is the stock market which exerts the most influence on stocks. The Dow Jones Industrial Average, commonly referred to as just Dow Jones, is another key US based stock market.

You’re not expected to invest in the stock market on your own. There are professionals who can do it for you. They are called stock brokers and they typically have a lot of experience dealing with the stock market. Becoming a stock broker can be a very lucrative career move, but you must understand all the ins and outs of the stock market. This is because stock brokers are usually paid by means of a commission, so if your clients’ investments make money on the stock market, so do you.

That’s not to say that you should just leave all your stock market investments in the hands of someone else. If you’re serious about investing, you’ll want to do some stock market research of your own. That way, you’ll at least have an idea of what’s going on. One of the best ways of approaching the stock market is liaising with a reputable stock broker as well as a stock research provider. There are many good stock research providers online who offer their services for free, and can give you advice on the stock market.

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