Most Americans invest in the stock market as way to grow and increase their savings and retirement. As traditional pensions and retirement plans are phased out, most working Americans are counting on their stock portfolio to help them fund their retirements, their kids college educations, and their financial futures. More than 50% of all Americans have money invested in stocks, bonds, or mutual funds. Some investors chose to invest with the help of a broker, while others prefer to manage their own portfolios. In either case, understanding the basis of investment is advantageous. Simply put, stocks for dummies means a little more than buy low, sell high. A stock is a share in the ownership of the company. Stock represents an investor’s claim on the company’s potential earnings and assets. As investors purchase more stock, their stake in the company, and the potential for higher earnings, grow. Many companies pay profits as dividends, and the more stock owned, the more dividends earned. Many investors purchase stock as part of a long-term wealth management strategy. Other investors are focused on short term gains. Stock prices fluctuate daily (sometimes hourly), as a result of the free market economy. Share prices changes because both the demand and supply of those shares change. You can get a complete picture of the stock’s activity by reading and interpreting the stocks daily quote. A stock quote indicates the stocks daily high, daily low, volume traded, yearly high, and other important financial information. If more people want to buy a company’s stock, the price goes up. If more people are selling the stock, the stock price falls. The price of a stock is reflective of what investors and the general public feel the company is worth. Investors and analysts watch the stock’s movement and try to predict the best times to buy and sell the shares. If an investor only looks at one piece of information, the stock for dummies tip is to pay attention to the earnings report. The earnings are the profit a company makes and publically traded companies are required to report their earnings quarterly to the Securities and Exchange Commission (SEC). If a company is making more money than expected, you can count on the stock price to increase. Subsequently, if the company made less money than projected, the stock price will drop. Novice investors may feel more comfortable using a brokerage form to execute stock trades. Full service brokerage firms offer advice and manage your portfolio for you. They charge higher fees, including commissions, than discount brokerage firms, which do not provide advice, research or personalized customer service. Online brokerage sites allow anyone with a bank account and some money to invest in the stock market. The financial media, whether online or on television can also provide expert advice and analysis about the stock market. Investing in stocks for dummies is simple. Buy stocks when the prices are low. Determine if your strategy is designed for long-term growth or short-term capital gains. Identify when you feel you should cut your losses and when you feel you can ride the volatility of the market. Stay informed about your portfolio and make decisions accordingly. Are you looking for more information regarding stocks for dummies? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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