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Friday, April 15, 2005

 

Stock Basics: Introduction


Wouldn't you love to be a business owner without ever having to show up at work?
Imagine if you could sit back, watch your company grow, and collect the dividend
checks as the money rolls in! This situation might sound like a pipe dream, but
it's closer to reality than you might think.As you've probably guessed, we're
talking about owning stocks. This fabulous category of financial instruments is,
without a doubt, one of the greatest tools ever invented for building wealth.
Stocks are a part, if not the cornerstone, of nearly any investment portfolio.
When you start on your road to financial freedom, you need to have a solid
understanding of stocks and how they trade on the stock market.
Over the last few decades, the average person's interest in the stock market
has grown exponentially. What was once a toy of the rich has now turned into
the vehicle of choice for growing wealth. This demand coupled with advances
in trading technology has opened up the markets so that nowadays nearly anybody
can own stocks.Despite their popularity, however, most people don't fully understand
stocks. Much is learned from conversations around the water cooler with others
who also don't know what they're talking about. Chances are you've already heard
people say things like, "Bob's cousin made a killing in XYZ company, and now
he's got another hot tip..." or "Watch out with stocks--you can lose your shirt
in a matter of days!" So much of this misinformation is based on a get-rich-quick
mentality, which was especially prevalent during the amazing dotcom market in
the late 90s. People thought that stocks were the magic answer to instant wealth
with no risk. The ensuing dotcom crash proved that this is not the case. Stocks
can (and do) create massive amounts of wealth, but they aren't without risks.
The only solution to this is education. The key to protecting yourself in the
stock market is to understand where you are putting your money.It is for
this reason that we've created this tutorial: to provide the foundation you
need to make investment decisions yourself. We'll start by explaining what a
stock is and the different types of stock, and then we'll talk about how they are
traded, what causes prices to change, how you buy stocks, and much more.
Next:
What Are Stocks?
Table of Contents1) Introduction
2) What Are Stocks?
3) Different Types of Stock
4) How Stocks Trade
5) What Causes Prices To Change?
6) Buying Stocks
7) How to Read a Stock Table/Quote
8) The Bulls, the Bears, and the Farm
9) Conclusion and Resources
10)Test Your Stock Knowledge

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