Beginner Tips Part 2
1) Stocks aren't just pieces of
paper, their your life!
When you buy a share of stock,
you are taking a share of ownership in a company.
2) There are many different kinds
of stocks out there
The most common ways to divide
the market are by company size sector, and types of growth patterns. Investors
may talk about stocks, energy vs. technology stocks, or growth vs. value
stocks,
3) Stock prices track
earnings from companies
the behavior of the market is based on A lot of
things over the long term though it is mainly company earnings that determine
whether a stock's price will go up down.
4. Stocks are your best
shot for getting a return or profit
well ahead of inflation and the
return of bonds real estate and other savings vehicles. As a outcome stocks are the best way to save money
for goals like retirement.
5. Individual stocks are
not the market. Dont invest in a single stock!
A good stock may go up even when
the market is going down, while a bad stock can go down even when the market is
strong!
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