Saturday, April 4, 2009

Stock Trading Conclusion

Stock means ownership. As an owner, you have a claim on the assets and earnings of a company as well as voting rights with your shares.

Stock is equity, bonds are debt. Bondholders are guaranteed a return on their investment and have a higher claim than shareholders.

This is generally why stocks are considered riskier investments and require a higher rate of return.
You can lose all of your investment with stocks. The flip-side of this is you can make a lot of money if you invest in the right company.

The two main types of stock are common and prefeered. It is also possible for a company to create different classes of stock.

Stock markets are places where buyers and sellers of stock meet to trade. The NSE and the BSE are the most important exchanges in the India.

Stock prices change according to supply and demand. There are many factors influencing prices, the most important of which is earning.

There is no consensus as to why stock prices move the way they do.

To buy stocks you can either use a brokerage or a devident investment plan (DRIP).

Stock tables/quotes actually aren't that hard to read once you know what everything stands for!

Bulls make money, bears make money, but pigs get slaughtered!

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Jesse Livermore Said

"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor."