what is stock investing and how do it work explain in detail?

Answer 1

You should understand the main reason why you want to spend money buying a particular stock. This step should preclude investing in stock. It allows you to move swiftly as soon as the price of the stock goes down a lot. If you know the main motivation about purchasing a specific stock, you will not hesitate to buy it once the price falls. Stocks purchased on the spur of the moment can be sold as soon as the price goes down. But if you are buying it as undervalued stocks, you can buy more stocks. Hiring a stockbroker can benefit beginners to the stock investment as they give all the necessary information about the stock to make the buying decision easy.

Answer 2

when a large company needs to raise money they"go public". what this means is that they sell small shares of the company. when you invest in stock you are really buying part of a company. there are 2 ways to make $ by buying stock. the first one is when the company makes a profit that money actually belongs to the peolple who own the company (shareholders) They pay each owner their share called dividends. The other way is when the company does well its value increases so the value of each share increases. Likewise if the company does poorly the shares are worth less. When buying stock the smart thing to do is to diversify. What this means is rather than investing all your money in 1 company you invest a portion of your money in several different ones. This way if 1 does poorly the others make enough to cover any losses.

Answer 3

Whole books have been written to "explain in detail how it works." Way too much to type here. Go to a bookstore and buy a copy of "Investing for Dummies" or "The Stock Market for Dummies" both by Eric Tyson.

Answer 4

Stock is partial ownership in a large corporation. If a corporation has 1 million shares, each share equals 0.0001% ownership in th company. Stock investing is buying and selling small portions of large companies.