The Stock Market

Essay by EssaySwap ContributorUniversity, Master's February 2008

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How do everyday people get so freakin rich these days? Well some might be born into a golden cradle, but for the rest of us there must be a different way. We could invest in the Stock Market. You invest in companies that you think will profit, or make money, by buying shares of that company. In buying those shares, you are now part owner of that company. Let?s say you buy 1,000 shares of Nintendo at $10 per share. Your net cost would be $10,000. Now if that companies shares go up to $11 per share and you still have 1,000 shares you would now have $11,000. So $1,000 is your net gain. But if Nintendo starts going down and sells shares at $9 per share. Now you have a net loss of $1,000. So yes playing the game is kind of risky, but it could payoff big in the end.

When you decide to buy stocks you should research them first. Check the history of the stock, what it?s at right now. Then when you know which stock you would like to invest in you have to get its ticker symbol. Just look up the stock you want and find the ticker symbol. For example, If you want Sony Entertainment its ticker symbol is SNE.

Now enter the ticker symbol and validate the ticker. This will tell you how that stock is doing right now. If you want to buy that stock then buy it.

Now any time you buy or sell you have to pay a stockbroker. It?s like $8 a trade or something so you don?t want to trade a whole bunch or it?ll cost you. Another trade you can do is short sell. When you short sell, you buy stocks...