| The stock market can seem like a confusing | | | | money. |
| place, we have all seen different scenes of the | | | | Then you need to find a reputable broker. A |
| exchange floor with people yelling, buying and | | | | broker is in charge of your money while they |
| selling. And there is some way people are making | | | | have it, make sure it is someone you can trust or |
| money during all this chaos. How do they do it? | | | | they might take your money and run. The stock |
| Let's take a look at how the stock market works. | | | | broker is a go between. They match their clients |
| The purpose of the stock market is to move | | | | with the available stock at a price they are willing |
| money. Some people need to use it and others | | | | to pay. You can determine the amount you are |
| have it to be used. A company's decision to sell | | | | willing to pay per share. You might have to wait |
| stock is usually based on their need for a large | | | | until it reaches that number but when it does your |
| sum of quick cash. Usually it is for some type of | | | | broker will buy for you. The same goes with |
| expansion or building a new plant. Then the | | | | selling, you can pick a predetermined number to |
| company will issue stock certificates. The | | | | sell and when it reaches that number it will be |
| common amount for a certificate is $1.00 to | | | | sold. |
| begin. The certificates are a piece of the | | | | Usually when someone takes this approach they |
| company. When buying stock you are becoming a | | | | have a percent of profit they are interested in |
| part owner. Often the people with the most | | | | earning and are willing to wait until it happens. |
| stock will sit on a company's board of directors | | | | You can also trade in stock online and be your |
| and help to make the decisions about the | | | | own broker. There are many web sites that will |
| company's future. Everyone who owns a share of | | | | allow you to do this and they will charge you a |
| the stock has a vote in how the company is run. | | | | small fee for every transaction you make. There |
| It doesn't matter if they have one share or 1000. | | | | are some people who make their money by |
| When you decide you want to buy a piece of a | | | | spending the day in front of their computers |
| company. The first thing you want to do is to | | | | buying and selling. The amateur stock broker is |
| research the company. Find out what they are | | | | called a day trader. They are usually only |
| about and find out their history of profitability. You | | | | interested in the short term. Hoping to buy and |
| want to make sure a company is moving in the | | | | sell at a profit within one or two business day. |
| right direction before you invest your hard earned | | | | |