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Stocks and Shares for Dummies


Board showing the Exchange Rates
Stock Exchange Electric Bulletin Board

 

How can you be productive whilst being lazy? Stocks and shares.


Money? a materialistic entity that everyone wishes to desire yet can't due to the restrictions it possesses on people. In all admittance this day and age are struggling with the evolving corporate world that is around us, jobs are harder to find and salaries aren't enough to allow us to get the desired luxuries we wish to obtain. I present to you a hack if you may, into how you can exceed in achieving a way to make a lot of money to be able to afford and enjoy your life, which can start from the comforts of your own home.

For beginners, it is important to understand the basics of stocks and shares before investing. This guide will provide a comprehensive overview of the basics of stocks and shares, including what they are, how they work, and how to invest in them.


The four most dangerous words in investing are: "this time it's different" - Sir John Templeton

 

What are Stocks and Shares?


Stocks and shares are financial instruments that represent ownership in a company or an investment in a company's stock

They are often referred to as securities, and are bought and sold on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ. Stocks and shares have become popular investment options for individuals and institutions alike, as they can provide the opportunity for long-term growth and potential income.

A stock represents a unit of ownership in a company, and the number of stocks you own is proportional to the amount of ownership you have in that company. When you purchase a stock, you become a shareholder in that company, which means you are entitled to a portion of the company's profits and voting rights at shareholder meetings.

Shares, on the other hand, refer to the total number of stocks that a company has issued. A company can issue as many or as few shares as it wants, but once they are issued, they can be bought and sold on the stock exchange. The value of a stock is determined by the supply and demand of that stock, as well as the overall performance of the company.

 

How do Stocks and Shares Work?

Stocks and shares are bought and sold on stock exchanges, where buyers and sellers come together to trade securities. The price of a stock is determined by the forces of supply and demand, which means that if there are more buyers than sellers, the price will go up, and if there are more sellers than buyers, the price will go down.

In addition to the stock price, the performance of the company is also an important factor in determining the value of a stock. If a company is performing well, its stock price is likely to go up, as investors are more likely to buy shares in the company. On the other hand, if a company is performing poorly, its stock price is likely to go down, as investors are less likely to buy shares in the company.

It's important to note that investing in stocks and shares involves risk, as the value of the stocks can fluctuate depending on the performance of the company and other factors like changes in the stock market and the economy.


 

How to Invest in Stocks and Shares

There are several ways to invest in stocks and shares, including:

1. Direct stock purchase: You can buy stocks directly from the company by contacting the company's shareholder services department. This is often a good option for beginners, as it is simple and straightforward. 2. Online brokerage: You can buy and sell stocks online through an online brokerage firm. This is a popular option for many investors, as it is convenient and can be done from the comfort of your own home. 3. Retirement account: You can invest in stocks and shares through a retirement account, such as an IRA or 401(k). This is a great option for those who are saving for retirement, as the investments are tax-deferred and can help you build wealth over the long-term. 4. Professional portfolio management: You can also invest in stocks and shares through a professional portfolio manager, who will help you choose the right stocks and manage your investments. This is a good option for those who are new to investing, as the portfolio manager can provide expert guidance and help you make informed investment decisions.


 

So, why should you invest?

Well, the answer is simple. You can make money by doing nothing. Professionals can do the work for you and you reap the rewards, or you can learn how to invest yourself and create another income stream. Either way, investing is a great way to make money and help to secure your future so you are financially stable, especially in retirement. Follow one of the options I have provided and see where your investments could take you!





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