how does investing work?????
2007-06-25 21:04:22 · 6 answers · asked by Taker_Fan 1 in Business & Finance ➔ Investing
when you invest or buy shares in a company you are purchasing a small ownership of that company. so that companys performance and profit is reflected in that piece you own. if the company does well they will earn more money and increase in value. likewise your piece of the company will increase in value so maybe you buy 5 shares of abercrombie and fitch which cost $70 each. youll have spent $350 but if A&F business does well then maybe the value will go up so now a share is selling for $72. your original 350 just became 360! you earned 10 bucks and over time with this interest compounding and with you buying more stock and the companies doing well in a good scenario youll become a millionaire!!
you can buy shares through brokerages. there are many discount brokerages that serve primarily through the internet such as firstrade.com, buyandhold.com, optionking.com, and fidelity.com to name just a few. youll be charged around 5-10 bucks for a "trade" which is to purchase (or sell after you own them) shares of a company you choose. ill help more if i can, let me know!
2007-06-25 21:23:34 · answer #1 · answered by mk.duran 2 · 0⤊ 0⤋
If I have been you I could pay attention to college and after college while you begin operating you are going to have extra money to speculate I feel you wish to have a minimum of $20 to $25k to get some thing. If you purchase land you are going to have got to pay taxes at the land so simply make certain you do your study earlier than shopping. You are fortunate to be making an investment early however at 18 now not many banks will deliver you credit score. Banks have tightened credit score considering that the downturn within the financial system and at 18 you're viewed a brand new borrower. I am now not seeking to discourage you have got to construct credit score and that takes time and make certain you're in no way overdue on any mortgage you get. Even a mobile mobilephone invoice you do not pay would harm your credit score. probably in case your mother has well credit score she will cosign a mortgage for you. If you insist on shopping some thing now this is a fine time to spend money on land in view that the rate has come down and they don't seem to be making any new land whenever quickly. Good good fortune Keep up your reviews and I wish there's a well activity looking forward to you after institution
2016-09-05 08:26:31 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Investing is taking your money and securing a financial interest in some company, real estate, object (stamps, paintings), person, etc. The goal would be to increase your money while taking a risk to lose some if not all of it.
Take 12 months or more & read everything you can on investing. Doing less is not investing.... it's gambling (and you will lose).......................
Consider yourself warned.
2007-06-26 01:06:56 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
the simplest answer is:
You can put your money into various assets like stocks to become a part owner of that company.
If you invest in Microsoft, you become a fractional owner of the company and its profits. If you invest in real-estate you partially own that land, etc.
If you want some good investing explanation, go to http://www.greenarrowinvestments.com
and browse the articles.
Good luck!
2007-06-26 03:14:50 · answer #4 · answered by D. V 2 · 0⤊ 0⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.tutorialforyou.net/investing/
wish it will help you.
Good Luck , Best Wishes!
2007-06-26 07:25:31 · answer #5 · answered by minsheng y 1 · 0⤊ 0⤋
You have to read review about "investing"
2007-06-25 21:50:12 · answer #6 · answered by leandar 2 · 0⤊ 0⤋