The Mum’s Guide To The Stock Market 100%
The stock market can be a complicated thing which confuses a lot of people. Investing in stocks is a popular form of investment but not enough of us truly know what it means to invest, and what a stock even is. Today we are going to talk through the basics so that all you mums out there can start investing like a pro.
What Is Stock?
The first question we need to ask ourselves is what a stock actually is. We will see things come up on the internet or the news such as stock qualcomm and wonder what it means to be a stock in a certain company. A stock is essentially a small part of the business. When you buy a stock, you are buying a small part of the business as a whole. This is why if the value of the company decrease, your stock value also does and visa versa.
How Do We Invest In Stock?
Investing in the stock market is a way that many people think they can get rich quick, and although you can get rich if you play the stocks right: most of the time you will likely just make a nice profit back from an investment. You can invest in stock by finding a stock market platform and bidding on a stock you think is worth it. After a while if the value goes up, sell it so you can make a profit back.
How To Find Stocks
Finding stocks is probably the most intimidating and challenging part of investing in the stock market, because there are thousands of companies out there which you could invest your money in. The trick to successful investment is finding the right company to put your money in. Think about companies who are about the launch a new product such as Apple, and take advantage of buying a stock ahead of time to sell when the value rises.
Choosing A Broker
It will be much harder for you to start investing in the stock market without having a stock broker there to help you along the way. If you can find a decent broker online, they will be able to guide you on where to put your money and stop you from making risky decisions.
Stock Prices
Stock prices can be a little bit difficult to understand, especially when a stock which costs you $40 can be worth more than one which costs $300. It is all to do with the structure of the company and where each new investor fits into that company. You will need to start doing your research on this because it can be a little hard to wrap your head around at first.
Dividends
If you have heard anything about the stock market, the word dividends will have likely come up at some point. Dividends describe the extra funds you will sometimes be offered for holding a stock for a long period of time. It means that when you do finally sell off the stock you will have a larger profit than if the company didn’t offer you dividends.
