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You will hear lots of people out there talk about investing in the stock market. Be it in a party Joel Armia Youth Jersey , business meeting, or in the news, it is oft-spoken about as it’s the most popular type of investment.
Despite this, plenty of people are not sure exactly what stocks are, why they should invest in stock markets Connor Hellebuyck Youth Jersey , or how to get into this type of investment. Hence this article!


So let us start at the basics – what a stock is, and thus what stock market investment really means. Okay, so you may have noticed that different symbols refer to different companies (such as CO stands for Coca Cola).


Owning a stock means owning a small part of whatever company or corporation the stock applies to. So if you own a CO stock, you own a (very, very small!) part of Coca Cola. Pretty neat Michael Hutchinson Youth Jersey , right?!


The reason we say a ‘very, very small’ part is because most large companies have millions of shares of stock in their company floating around on the stock market. So to own a large part of a company can require owning millions of shares in the company (and subsequently, meaning you would need millions of dollars in order to ever own a large part of a big company).


Since most people can only afford to own a small part of companies, you may ask ‘Why would a company want to sell itself to the public, then?’. For publically owned companies (i.e. companies which do sell shares to the public; not all companies do Dustin Byfuglien Youth Jersey , however. Privately owned companies keep their ownership out of the public domain), the reason they do this is usually to raise money.
By selling their shares publically, they can get in more money which can be used to invest and fund new projects (which will then hopefully expand the company in-turn). This option might not always be open to a company with privately-held shares (they would instead need to get extra money usually via taking out a business loan).


To go public, a company merely needs to decide to do this, decide how many shares to sell Nikolaj Ehlers Youth Jersey , and what the initial price of the shares will be. Then once they are made public, the share price will fluctuate depending on the company’s performance and the market’s view of the company as a whole.


If the public feel that the company will perform well in the future, the stock price might rise. This in-turn then increases the value of the company (which is naturally desirable to stock investors and shareholders).


However if the public thinks the company’s future is bleak, the stock price can just as easily fall – which can lead to investors in the company losing their money. This happened plenty during the 2008-2010 financial crisis.


You might also hear people referring to companies paying dividends to their shareholders. This is where a company pays out a particular (small) amount each year to shareholders. So for example, company XYZ might decide to pay out $0.20 per share. So someone owning 1 Bryan Little Youth Jersey ,000 shares in that company would receive $200.


Companies usually do this to increase the number of shareholders since naturally be offering to pay out a dividend, they are increasing the attractiveness of their shares. And obviously the more shareholders a company has, the more likely it is that they can raise funds when needed.
We hope that you have found this short introductory article helpful.


If you want to learn more about how to make money via Forex trading, and many other investment methods, please feel free to visit my Explore Investment website for loads of free tips Jacob Trouba Youth Jersey , tricks and articles relating to making money via investment.

Lenora Nina
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