Basics for Newcomers to the Stock Market

If you live in Arizona then you’re probably familiar with the shaky housing market that has affected many people. Arizona still has a ways to go toward stability and with so many investing a large portion of their livelihood in the housing bubble, many lost big. As an article on State Press reported, houses are not stocks and it ís time that people stop using them as such. If you’re looking for ways to introduce more stable assets into your portfolio, consider investing in the stock market. If you’re looking to move your assets out of the housing and into the stock market, but youíre just not familiar with how it works, there are a few basics terms and principals to get you started.

  • Defining Stocks

  • Why Most People Invest?

  • How To and How Much?

Defining Stocks

A stock is capitol raised by a corporation through the issuing of shares. A share is a divided-up portion/unit of the value of a company. A stock is simply a share in the ownership of a company and is a representation of the company’s earnings and assets. The more stocks acquired in one company, the more ownership stakes a person possesses of any given company. Owners of stock are known as shareholders, and these shareholders are entitled to their share in the companyís earnings.

Why Most People Invest?

The overarching goal with stocks is to make money. Many people were lured into the housing market because they saw it as a similar opportunity but ended up loosing their livelihoods. Investing in real estate proved to be a volatile investment and it hurt a lot of people who bought into the hype. This isnít to say that stocks don’t carry a certain level of risk but you can more easily manage your assets than other types of investments because you have greater control. If you’re looking to shore up your investments then some wise planning and approaches could help any person in establishing finically stable future.

How To and How Much?

There are stocks sold through a formal stock exchange, such as AMEX or NASDAQ and there are also stocks known as “over-the-counter”. Over-the-counter stocks refer to stocks traded by a dealer network rather than a centralized exchange like the more traditional NASDAQ. The variety of stocks you can buy is extensive and the prices of stocks also vary considerably. A person can invest in stocks in upwards of $500 or as little as a $0.01. It all depends how much capital you have on hand to invest and what kind of companies you wan to invest in.

Once you’ve done your research on which stocks you want to invest in, youíll need to have a broker or set up a brokerage account to handle your purchases. This can easily be done online. A broker will give you the stocket market help necessary to diversify your investment portfolio, and will determine whether you want to put your funds in long or short-term investments. Itís really up to the individual as to what kind of level of risk they’re comfortable with.

Consult A Market Professional

These basic terms and approaches will be helpful towards getting you started but for a more compressive understanding with the intricacies of the stock market, you’ll want to consult a market professional that can better guide you through the process and advise you on which stocks are right for your unique investment needs.

If you live in Arizona then youíre probably familiar with the shaky housing market that has affected many people. Arizona still has a ways to go toward stability and with so many investing a large portion of their livelihood in the housing bubble, many lost big. As an article on State Press reported, houses are not stocks and itís time that people stop using them as such. If youíre looking for ways to introduce more stable assets into your portfolio, consider investing in the stock market. If youíre looking to move your assets out of the housing and into the stock market, but youíre just not familiar with how it works, there are a few basics terms and principals to get you started.

Defining Stocks

A stock is capitol raised by a corporation through the issuing of shares. A share is a divided-up portion/unit of the value of a company. A stock is simply a share in the ownership of a company and is a representation of the companyís earnings and assets. The more stocks acquired in one company, the more ownership stakes a person possesses of any given company. Owners of stock are known as shareholders, and these shareholders are entitled to their share in the companyís earnings.

Why Most People Invest?

The overarching goal with stocks is to make money. Many people were lured into the housing market because they saw it as a similar opportunity but ended up loosing their livelihoods. Investing in real estate proved to be a volatile investment and it hurt a lot of people who bought into the hype. This isnít to say that stocks donít carry a certain level of risk but you can more easily manage your assets than other types of investments because you have greater control. If youíre looking to shore up your investments then some wise planning and approaches could help any person in establishing finically stable future.

How Much Money Do You Need?

There are stocks sold through a formal stock exchange, such as AMEX or NASDEQ and there are also stocks known as ìover-the-counterî. Over-the-counter stocks refer to stocks traded by a dealer network rather than a centralized exchange like the more traditional NASDEQ. The variety of stocks you can buy is extensive and the prices of stocks also vary considerably. A person can invest in stocks in upwards of $500 or as little as a $0.01. It all depends how much capital you have on hand to invest and what kind of companies you wan to invest in.

How to Buy Stocks?

Once youíve done your research on which stocks you want to invest in, youíll need to have a broker or set up a brokerage account to handle your purchases. This can easily be done online. A broker will give you the stocket market help necessary to diversify your investment portfolio, and will determine whether you want to put your funds in long or short-term investments. Itís really up to the individual as to what kind of level of risk theyíre comfortable with.

These basic terms and approaches will be helpful towards getting you started but for a more compressive understanding with the intricacies of the stock market, youíll want to consult a market professional that can better guide you through the process and advise you on which stocks are right for your unique investment needs.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.