2006-07-09 16:44:38 · 4 answers · asked by Anonymous in Society & Culture ➔ Other - Society & Culture
when some firm needs money they decide to go public and sell stocks. People come and decide how much firm cost and then sell 1 part of it to other people,stockholders to get money.That is how they get cash. If they sell more then 50% they lose ownership of that firm.Why stocks value goes up and down? Because of more then just 1 thing. Technological advancement is 1, after fiberoptic cable was found wire firms went way down.Nobody was buying it. And lots of other things, war,weather,....
2006-07-09 16:57:42 · answer #1 · answered by katy 2 · 0⤊ 0⤋
longterm and short term trends. It's a lot of smart and stupid people in a gossip room. Everyone reacts to what happens in the short term, so that's why day to day it's so chaotic with people buying and selling shares to one another. But then, remember that a stock is just a piece of a company that u own; in the long run, if that company is successful, and earns a profit, it's stock value is likely to appreciate.
2006-07-09 16:58:42 · answer #2 · answered by matthat16 1 · 0⤊ 0⤋
You have so many stocks, and they don't stay firmy worth a certain amount. They fluctuate. Each of your stocks is worth a certain amount. If it goes up since you bought it it's probably worth more. You can cash it in and make some money. The idea is buy for a low price; sell for a higher price.
2006-07-09 16:49:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's all magic and voo doo to me!
2006-07-09 16:59:40 · answer #4 · answered by keri gee 6 · 0⤊ 0⤋