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