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can you explain how investment in stocks works?

2007-01-12 12:21:21 · 3 answers · asked by Anonymous in Business & Finance Investing

3 answers

You buy stocks in hopes that their prices will rise, and when they are worth more, you can sell them and get $
Prefered stocks are guarenteed a dividend (what the company pays stockholders) when the company declares them, but are riskier because companies desperate enough to sell prefered stock are more likely to go bankrupt

2007-01-12 12:28:58 · answer #1 · answered by Anonymous · 0 0

There are literally 10's of thousands of stocks. The easiest way to get into the market is to buy ETF's (exchange traded funds). If you believe that the biotech industry will be the next big thing then buy IBB, for instance. They have ETF's for everything from semi-conductors to the total market to the Nasdaq to basically whatever you chose. To be more specific in the market requires for due-diligence. If you chose to do so then buy some ETF's and then research some ind. stocks before you buy. Always have an exit point (both in profit sides and loss sides) and invest your money monthly so that you have new opportunities. JMO...Good luck!

2007-01-12 20:30:43 · answer #2 · answered by fade_this_rally 7 · 0 0

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2014-10-06 23:51:49 · answer #3 · answered by Anonymous · 0 0

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