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Little Star | Stock and shares? what are they and how do i make money from them? |
where do i get them? how much do they cost? etc etc if you know anything about them that would be great, thanks x |
 |
 
The Professional
 |
You know (and Im not trying to sucker you in to reading my blog), but I wrote an article about this on a blog Ive been working on. It's about these type of questions that beginners have. It's called "The Absolute Beginner" on my blog and I made it as easy to read and clear as possible.
- Located under 'About Me' in my profile (It's about half way down on my blog)
Good Luck
- Black |
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The Shadow
|
Stocks and shares are the same thing. Buying shares in a company makes you a part owner, although you will own a very tiny percentage of the company. You are entitled to collect dividends, if they are declared, and to vote on certain matters such as elections of directors.
The price for each company changes throughout market hours and is set by current market conditions, i.e., what buyers are currently willing to pay for shares and what sellers are willing to accept. Think of it as an 6 1/2 hour auction except that prices can go down as well as up. Some companies also pay dividends (cash distributions based on the number of shares that you own).
You buy and sell through a trading account with a stock broker.
You make money by evaluating the prospects of companies and buying them when you think that the price will go up. You sell when you think that the companies prospects are deterioriating and the price will go down. If the price has increased since you bought your shares, you will make a profit. If the price has decreased, you will lose money.
It's good to ask questions because its the only way that you can learn. However, it is easier to lose money in stocks than to make money if you don't know what you're doing. The fact that you're asking these types of questions on Yahoo Answers tells me that you're not ready to own stocks. Pick up some books on personal finance and beginning investing at your local bookstore. See if there are classes at your local community college or adult ed program. Then, make some fictional trades on paper to see if you're properly applying what you learned.
Knowledge is the difference between successful investors and gamblers. |
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cOO
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Hello Sarah,
When you buy a share in a company, you purchase a fraction of that company - you become a part owner. The price you pay is determined by the stock market at the time of purchase - based on how popular it is.
Owning a part of the company may provided you with a proportional slice of the company's future profits - these are usually paid out to you in the form of dividends a couple of times a year.
How do you make money? Good question.
If you buy a share, and then later sell the share at a higher price then you'll make a profit (providing you also beat broker costs, tax and infation).
If you hold onto the share for a long time then potentially the accumulation of dividends will exceed what you paid for the share and you'll be in profit (again, after taking into account broker costs, tax and inflation).
Easy isn't it?
Hopes this helps! |
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kevin h
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ok, well, they are a little piece of a company that you can buy, and then sell again at a higher price. they range anywhere from .01 to over 13,000 dollars. you can buy them through a brokerage like schwab or fidelity. you should do a lot of reading before you decide if the stack market is right for you. |
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doofuss
 |
Buying shares of stock gives you a financial interest in a company. You become a part owner of that company.
You get them through a broker. There are dozens of them.
The cost of shares are determined in the marketplace, and can change every minute.
Before you invest, learn as much as you can, by reading books in the library and articles on the internet.
I know enough to avoid the "penny" stocks and to buy stocks in good solid companies, and to be patient, investing for the long term (Many years).
Just open your kitchen cabinet and get the names on the boxes and labels. Also, look at your local gas stations, and invest in Exxon Mobil, BP, Marathon Oil, etc. None of those companies will be going out of business any time soon |
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Al Zymer
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Take notice of the previous excellent answer. I have been investing for 25 years, and can vouch for the fact that there are many downs as well as ups! These days, I invest in funds managed by experts; less risky! |
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vipendra k
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contact me 09312069384 mail me ashirwadvip@yahoo.co.in |
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