What is the stock market?

Question

What is the stock market and how do I get in on the action? Can I do this on the internet?

Answer 1

The above answers are somewhat right, but you really don't have any "assets" behind the stock-unless it is in preferred shares or corp. bonds. If the company goes bankurpt, you would be lucky to receive any of the liquidating proceeds. Really the price of the stock is determined by what the "market" of other traders are willing to pay for it (the greater fool theory). It is based on expectations of future earnings, usually about 6mos to a yr out. Incredably interesting and I love it, a good book to read to start with is "Reminiscence of a stock operator" by Edwin Lefevere, about the famous trader, Jesse Livermore. The biograghy is even better and along the same lines. Realize all markets are 'manipulated" and learn to understand the manipulators and their devises...........Good luck!

Answer 2

The stock market (which is actually composed of a number of different markets, called exchanges) is a place where you can trade stock (also called shares) of various corporations. A share of stock gives you a partial ownership stake in a given corporation and a right to a fraction of the money the corporation makes (ie if you buy one share of microsoft stock and there are a billion shares of microsoft stock outstanding, you own 1 billionth of the microsoft corporation.) You need a broker to execute the orders you place on one of the exchanges, and you can sign up with one (and order stock) online at Etrade, Scottrade, Ameritrade, etc. Be warned that if you have only a small amount of cash available to invest (under 5k) these brokerages may charge you a significant account fee. Good luck.

Answer 3

stock market is a market where owner ship securities are bought and sold. there are two types of security traded on stock exchange that is common shares and preferred share. you can participate on this market by becoming the member of this market through brokers of this market.This is the only market which gives highest return compare to other alternatives of investments

Answer 4

Stock, simply, is an equity share in a business. In general, as the business prospers and increases in value, so does your "piece" of the business...and vice versa. Get in with a broker...traditional or on-line. Watch out...get informed...be smart.

Answer 5

yes u can do it on internet, u just have to start with a small amt of money buy shares & after it appreciates u sell and take ur profits but dont do this with out proper guidance contact: [e-mail]