We just hear many people talking about the shares and also about growing the dividends and as to how the money gets increased just exponentially. If you also have some saved money and just some unfulfilled wishes complementing them to somewhat fulfill then good knowledge of stock market can also actually help you out making the money swell and just achieve your dreams whatever they might be from just buying house in the Bahamas to maybe only buying necklace for your wife. Here is brief introduction of Share market and also how exactly the rocket science tends to functions.
10) Kinds of Shares
Things to Know about Share Market includes Kinds of Shares. There are just many different kinds of the stocks based on the market size and also the size of capitalization of market. Therefore there might be some large cap shares or even the small cap shares. There may also be just energy shares or the technology shares based on kind of the market. Therefore company investing in the projects related to the energy or even the technological development would also obviously let out the shares in respective field and also hence there can be variety of the shares available in share market.
9) Stock brokers
Things to Know about Share Market include Stock brokers are basically people who are just licensed professionals that buy and also sell shares the mutual funds etc. for you through brokerage account issued in the name by company they just broke or even handle shares for. They should not be just confused for the financial planners who manage the finances of some particular company. They just also execute trades on anyone’s behalf and charge you the commission for same which often also lies in the 5-10% bracket of cost of total number of the shares that you also invest in. It should also be noted that the stock brokers have gone to just become legends in field of the investments and have made name for them all around this world.
8) Ticker symbols of different companies
Things to Know about Share Market include Ticker symbols of different companies. Ticker symbols are just basically abbreviations that stock market uses in order to also project status of the shares of different companies trading on the particular stock exchange market. Hence the Chevrolet Motors can also be represented by the CVR MTRs the General Electric by the GE, etc. They basically help observer get idea of rates of the shares that his/her company is just trading at.
7) Fluctuation of Stock Prices
Things to Know about Share Market include Fluctuation of Stock Prices. Stock prices just fluctuate mainly because of fact that stock market is like auction where investors constantly just pouring in prices that they also wish to pay for the shares.
6) Price to earnings ratio of stocks
The price to the earnings ratio is cost investor pays for just every 1 dollar of the earning. If stock is just trading at around 35 dollars and also earns around 3.50 dollars per share in the profits then it’s the price to earnings ratio would be just 10.Investors should also aim for higher price to the earnings ratio in order to maximize the profits.
5) Bear and Bull markets
Bear markets are known as those markets where prices of the stocks have crashed down by the 20% or more where the Bull markets are those where prices of the stock rise by around 20% or even more. Hence it is also better for the investors to invest in Bull market rather than just investing in Bear market. Bull charges ahead and also bear pulls you back thus analogy.
4) Non accessibility of stocks and also shorting stocks
In the olden times if some company suffered losses then in order to just pay back those debts it could charge shareholder for share and he would also have to mail in check to company to pay out the particular loss incurred by company. However just most stocks now are even assessable which means that now company cannot charge shareholders for any of the losses and shareholder cannot lose just any more than he already invests.
3) Dividend and manner in which it is distributed
If company makes profit in the business venture then board of the directors of company who basically represent shareholders interest just vote as to how profit is to be divided between shareholders owing to fact that company’s business earns the capital from the money. Hence if Board votes to set dividend rate at around 2 rupees then price of the shares of that the particular company will increase by around 2 dollars.
2) Picking stocks to choose which stock to invest in
Although there is just no magic formula regarding which of the stock can make you rich or which stock can also get you most returns. However it is well noted fact that the blue chip stocks like that of the IBM and the Coca Cola etc., will get you just steady money although that is just also possible in case of the smaller corporations. Some good methods just to find out which of the stock to invest in would be also to find out financial pages headlines of some of the companies or even develop own methods to evaluate the companies and dig into some of the companies with some unfamiliar names to look out for the companies to invest in.
1) Getting rich with investing in shares
Buying right stocks can just make you rich. Buying the great companies for long haul can just pay you off with some serious wealth. At the time of the Wal-Mart’s IPO total cost of the first 100 stocks was around $1650. After next 18 years these became around 204,000 shares costing 90 dollars .Hence total price rose to around 1.8 million dollars of $1650 investment.
Summary – Things To Know About Share Market
|Serial||Things To Know About Share Market|
|1||Getting rich with investing in shares|
|2||Picking stocks to choose which stock to invest in|
|3||Dividend and manner in which it is distributed|
|4||Non accessibility of stocks and also shorting stocks|
|5||Bear and Bull markets|
|6||Price to earnings ratio of stocks|
|7||Fluctuation of Stock Prices|
|8||Ticker symbols of different companies|
|10||Kinds of Shares|