| While most folks today trust mutual funds and | | | | with a little practice. |
| their professional managers with their | | | | Ticker symbol is listed first. This is the |
| investments, it's still important to understand the | | | | abbreviated symbol that the stock market uses |
| basics of the stock market. Although investing in | | | | to identify your company. For example, GE is |
| individual stocks may not be right for everyone, a | | | | General Electric, WMT is Walmart. Once you |
| basic understanding of the stock market is | | | | select a company, you'll need to know it's |
| essential to understanding the workings of our | | | | shorthand name to track its progress. |
| economy and business sector. | | | | Second, the company's name may be listed. |
| A stock is a portion of ownership in a company. | | | | Some tables omit the name to save space, |
| Commonly referred to as a share, it is a small | | | | others list it to make tracking stocks easier. |
| percentage of the total ownership pool for the | | | | The third item is the number of sales in the last |
| corporation. Shareholders are stock owners, or | | | | trading day. This is listed in the 100,000's, so 256 |
| people who have an ownership interest in the | | | | means 256,000 shares were bought and sold on |
| corporation. Today, shares are usually tracked | | | | the last day that the market was open. |
| electronically, but in previous decades shareholders | | | | Next are the high and low price, in that order. The |
| would actually receive a certificate stating their | | | | high price is the highest per share price that the |
| ownership. | | | | stock sold for on the previous trading day. The |
| Why own stocks? First, you are sharing in the | | | | low price is the lowest price for that day. Since |
| company's profits. When a corporation shows a | | | | the price of the shares moves all day long, this is |
| profit, they will sometimes distribute these profits | | | | a good reference to see how much the stock is |
| to each shareholder, based on how much stock | | | | changing in a day. |
| they own. This distribution is called a dividend. | | | | Next, the closing price is listed. This is the last |
| Company's can elect to pay out their profits or | | | | price that the stock traded for as the market |
| reinvest them in the company, but as a | | | | closed. This will also be the beginning price for the |
| shareholder, each time a payout is made you will | | | | next trading day. |
| receive your proportionate share. | | | | After the closing price, the table will list the |
| Also, the value of your stock will rise and fall | | | | change, or the amount that the stock changed |
| based on the company's perceived value in the | | | | when you compare yesterday's closing price with |
| stock market. If you buy a share at $10.00 and it | | | | the closing price for the day before. This will be |
| rises to $11.00 a share, you've made a dollar for | | | | listed as a positive number (the stock went up) or |
| each share you own, and subsequently sell. | | | | a negative number (the stock sold for less |
| However, with this opportunity comes risk as well. | | | | yesterday than the day before). |
| If the share price falls and you sell, you'll lose | | | | Stock tables are found in many places, but most |
| money. The more volatile the stock, the more | | | | people check their daily paper or the Wall Street |
| opportunity for risk or profit. | | | | Journal. There are many internet sites that track |
| Most shareholders track their stocks using the | | | | stocks as well. |
| stock table. These appear confusing and difficult | | | | Of course, you'll have to select a stock. Choose |
| to read, but they are actually easy to understand | | | | carefully or consult a professional, and good luck! |