Monday, October 27, 2008

Stock Market Trading

Come with stock trademart enjoy whole knowledge of Stock Market !

Get ideas how to invest in stock market.

Get daily commentary of stock market.

Believe upon us and plan for your money.






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Stock Market Questions & their Answers
Ques:Idea about the Stock Exchange?
Answer:-
The stock exchange provide an area where stocks, bonds, or other securities are bought and sold.
A centralized location was needed for people to go to to do this, because mass communication was practically non-existent at the time were created. Buyers and sellers needed to be near one another to make transactions. Stocks and bonds consist values that are fixed at the beginning of each trading day and they rise and fall depending on the economy in general or the company in particular. Investors buy the stock if they think the price will rise or if it gives good dividends and sell if they think the price will fall or gives low dividends. Only a small amount of people are allowed in the exchange, so most people buying or selling securities have to hire one of those people to do the buying or selling for them. There are several different exchanges throughout the world.
Stocks are bought and sold at the exchange by the brokers who work for companies that are allowed to be at the exchange. It is not a supermarket of stocks open to the public. A person looking to buy or sell stocks contacts a broker working for one of the companies that is allowed in the exchange and places an order to buy or sell a particular stock or bond.That broker contacts his company's employee at the exchange to tell that employee to buy/sell a particular stock at a particular price. The employee finds someone at the exchange who wants to sell/buy that same stock for that same price and they make a deal. Prices of stocks are posted all day long and prices change during the day.

Saturday, September 27, 2008

Ques:What are the types of stocks?
Answer:-
• Market capitalization
(Or size) from micro, to small, midsize, and large
• Growth vs. value
Growth potential vs. offering an attractive value
• International
Stocks issued by companies located outside of the United States
• Geography
By country, or by region (or foreign and domestic) or
Such as financial services, energy or consumer goods
Ques:How does the stock market work?
Let's do this by example. Let's say you are the owner of a company that is worth $15 million. You want to share the risk (and rewards) of doing business so you decide to 'go public'. You then decide to divide your business net worth ($1m) into 1 million pieces (shares). You then decide to sell 900,000 shares to the general public on the stock exchange. Simple math places the initial offering price of your shares at $10 each. You then have an 'Initial Public Offering' (IPO) where you sell the 900,000 shares with a starting price of $10. Your business is now $9 million richer in cash but you are no longer the boss but working for the share holders. Generally cash generated by IPO's are used to expand the business, cancel debt, etc. As time progress your business makes money and/or loses money. If you make a profit your business decides how much of that profit is retained to invest in the business and the remainder is divided up among the share holds. Let's say in the first quarter after your IPO, your company made $100,000 in profit that will be given to teh shareholders in the form of a dividend. Since there are 1million shares outstanding each share holder will get $.10 times the number of shares they have. You will receive $10,000 because you kept 100,000 shares. The value of a business can be determined by multiplying the number of outstanding shares (1m) times the current share market price. If the business made money and purchased assets and such, then the value of the indiviual shares will grow. If the company loses money the value of the shares fall. The buyers and sellers of the shares of your business are watching the value of your business to determine when to buy and when to sell which is all based on how they think your business will perform in the future. Buy a low priced share of a business that makes good money and the share value goes up, divindens are paid and you sell your stock at nice profit. Buy a high priced stare and the business falters and share values drop and no dividends are paid and you lose money.

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