LIVE MARKET UPDATE

Thursday 25 July 2013

Stock Market Tips For New Investors



First of all you need to obtain a basic knowledge of shares and the stock market. It goes without saying that without knowing the aspects of a stock Tips or the concept of how the stock market works it’s impossible to know what you doing. You can gain all the basic knowledge of the stock market in the basics section of the website.
These are the key concepts that need to be learnt before moving onto learning to trade;
  • Learn the aspects a share has e.g. dividends, bid/ask price, its chart etc.
  • Know what information is required to buy shares.
  • Learn how the stock market works
  • Know of the risk involved with trading shares
Its important to have this knowledge before paying money for a trading course to enable you to fully understand the concepts being taught. By not knowing any basic stock market information, parts of courses could easily fly by you, meaning that you will struggle to understand the information that you will have paid for!
The New investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education. there is so much written on the topic of investing for new investor . when you are investing money in stock market keep it simple. keep your investment strategies such as examining data point making predictions and trading real simple to help insure you don't take on to many risk on company or stock without having market security.
 
Understanding stocks and bonds
Stocks and bonds are the staples of many investment portfolios. Stock represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder. A share of stock is issued in a number of different ways — following are descriptions of the most common forms:
1.     Common stock
Common stock — also called common shares, capital shares, or capital stock — represents units of ownership in a corporation. Purchasers of common stock are granted specific rights that may include the following:
·         Voting at stockholder meetings.
·         Selling or otherwise disposing of stock.
·          Having the first opportunity to purchase additional shares of common stock issued by the corporation.
·          Sharing dividends with other common stock holders.
·          Receiving annual reports and inspecting the corporation’s books and records.
·         Sharing in assets if the corporation is liquidated.

A corporation may be authorized to issue more than one class of stock. For example, a class of common stock might have enhanced voting rights. This stock may be more expensive than regular shares.
2.     Preferred stock
Preferred stock gets its name from the preferences granted its owners, which may include dividends or sharing assets should company liquidation occur. Preferred stock generally doesn’t carry voting rights. It is issued by a company to raise capital without jeopardizing the controlling interests of the common stock holders. Preferred stock is sometimes convertible to common stock.
Investor makes a good impact on the stock market and with the brokers the market gives a very  good results which in turn benefits investor as well as the market. Investor understanding gives a amount of options in the market. Analysis and regular watch brings a best and accurate results from the market which is a best tools, which can be provided by the advisors and brokers who trade in the market.

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