Wall Street

A stock is a portion of ownership in a company. Commonly referred to as a share, it is a small percentage of the total ownership pool for the corporation. Shareholders are stock owners, or people who have an ownership interest in the corporation. Today, shares are usually tracked electronically, but in previous decades shareholders would actually receive a certificate stating their ownership.

Online Stock Market Trading Why own stocks? First, you are sharing in the company's profits. When a corporation shows a profit, they will sometimes distribute these profits to each shareholder, based on how much stock they own. This distribution is called a dividend. Company's can elect to pay out their profits or reinvest them in the company, but as a shareholder, each time a payout is made you will receive your proportionate share.

fund manager and longtime Wall Street commentator Jim Cramer explains how to invest wisely in chaotic times, - or should be, when it's done right.

Stock Investing Course Also, the value of your stock will rise and fall based on the company's perceived value in the stock market. If you buy a share at $10.00 and it rises to $11.00 a share, you've made a dollar for each share you own, and subsequently sell. However, with this opportunity comes risk as well. If the share price falls and you sell, you'll lose money. The more volatile the stock, the more opportunity for risk or profit.

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Stock Market Game Most shareholders track their stocks using the stock table. These appear confusing and difficult to read, but they are actually easy to understand with a little practice.

Here are a few rules about investing. The longer you invest (leave your money in the market) the lower your risk.

Stock Investing Game Ticker symbol is listed first. This is the abbreviated symbol that the stock market uses to identify your company. For example, GE is General Electric, WMT is Walmart. Once you select a company, you'll need to know it's shorthand name to track its progress.

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Journal Prime Rate Street Wall Second, the company's name may be listed. Some tables omit the name to save space, others list it to make tracking stocks easier.

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Stock Market News The third item is the number of sales in the last trading day. This is listed in the 100,000's, so 256 means 256,000 shares were bought and sold on the last day that the market was open.

Stock Investing Basics Next are the high and low price, in that order. The high price is the highest per share price that the stock sold for on the previous trading day. The low price is the lowest price for that day. Since the price of the shares moves all day long, this is a good reference to see how much the stock is changing in a day.

Stock Investing Software Next, the closing price is listed. This is the last price that the stock traded for as the market closed. This will also be the beginning price for the next trading day.

Stock Market Trading After the closing price, the table will list the change, or the amount that the stock changed when you compare yesterday's closing price with the closing price for the day before. This will be listed as a positive number (the stock went up) or a negative number (the stock sold for less yesterday than the day before).

Stock Investing For Dummy Stock tables are found in many places, but most people check their daily paper or the Wall Street Journal. There are many internet sites that track stocks as well.

Stock Market Crash Of course, you'll have to select a stock. Choose carefully or consult a professional, and good luck!

Stock Investing Tip About The Author:

Stock Market Chart Jay Moncliff is the founder of http://www.investingreviews.info a website specialized on Investing, resources and articles. This site provides updated information on Investing. For more info on Investing visit: http://www.investingreviews.info

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