Some Stock Market Basics To Help You

In an unusual departure from my normal writing style, this page is simply a list of stock market facts. They are in some order, but by nature, are varied.

* A share of stock is simply a part of a company. If a company sells 100 shares of stock, and you buy 3 shares; then you own 3% of the company.

* A person who owns stock in a company is called a shareholder.

* Companies issue (or sell) stock in order to raise money. They do this instead of borrowing money from a bank in order to avoid debt and to avoid interest charges.

What Are Today's Top 50 Trending Stocks? Free List Available Here

* Shareholders generally have the right to vote in company matters.

* The more shares and shareholder has, the more votes they have.

* The stock market is a long term investment – not a short term one. Short-term investing can be a very risky and stressful business, and it can deliver huge losses to the investor. By investing in the medium to long-term, you will provide the best possibility for profit.

* Historically, the stock market has provided a better rate of return than many other types of investments – such as saving money in bank accounts or buying bonds.

* A bear market is one where stocks are falling. A bull market is one where stocks are rising.

* Common stock is what the majority of stock is. It provides ownership in the company and the right to vote on certain matters.

* Preferred stock has some ownership in the company but often does not come with voting rights. Shareholders are usually guaranteed a certain dividend rate forever.

* Each company has a unique symbol that represents it on the exchange where it is listed. This is often known as a ticker symbol.

What Are Today's Top 50 Trending Stocks? Free List Available Here

* Do not get emotional about your stock. Do not sell the minute your stock drops in price – you need to understand that there are cycles that the market follows. Simply hold on to your stock and wait until the market rises again (which it has always done).

* When (not if) the market falls, be ready for it and look for opportunities to purchase stocks for bargain prices (after doing your homework, of course). Fortunes have been made because smart investors saw opportunities where others saw disaster and doom.

* The stock market is much easier to invest in these days because you can buy and sell shares online. If you do this, you need to make sure you do your homework and invest wisely.

To read more about the stock market, please visit the following pages:

Understanding The Stock Market

Understanding The Stock Market - Where Should You Start?

What Is A Stock Market?

How Does The Stock Market Work?

How Does The Stock Market Work? - Following The Steps

The Stock Market For Beginners

Stock Market Timing: The Professional View

How Important Is The Latest Stock Market News?

The Problem With Stock Market Forecasters

Stuart's New Stock Market Theory