Stocks & Shares Quesion?

Question

Hi - I want to buy some stocks and shares for the first time - i've look on the London stock exchange - and it says volume - is that how many stocks there are in the company? so if the volume is 100 and i buy 10 do i own 10% of the company - i'm confised because you can see buying history and some people have bought more then the volume

Thanks

Answer 1

well I see that your question has already been correctly answered; but I feel obligated to warn you that you desperately need to do a LOT more learning before you buy anything. Don't get me wrong, there is absolutely nothing wrong with not knowing something, there is however, something wrong with not knowing what is necessary to make a smart decision. If you begin investing with your current knowledge level you WILL loose money and will end up giving up on the market, and to do so would be sad because you would be missing out on some great opportunities. I strongly suggest that you check out or buy an investment book from a credible source, this can be tricky because there are a lot of quacks out there with get rich quick schemes. Personally, I am a fan of Jim Cramer (as per my screen name), he managed a $400 million hedge fund for 14 years and compounded an above industry average of 24% growth year over year, after he retired from his hedge fund he went on to host an investment show on CNBC called MAD MONEY he has also written a book with this title. Now I dont know about you but in my book these are some amazing credentials. I have read all of his books and watch his show M-F at 6 central time, I have used the methods he has outlined on his show and in his book to do all of the necessary homework before buying anything. Due to following the instructions he outlines I have been able to pick some real winners and made a lot of money. He also has a website called thestreet.com it has a lot of good info in it too. I know that I sound like his official spokes person but I do not care if you choose to read or watch cramer ever as long as you find some reputable source from which to gain knowledge. I hope that this will help you.

Answer 2

The volume is the total shares traded that day. Individual stocks are called shares. so you buy shares of a stock.

Answer 3

No, that means you just bought 1/10 of the shares trading hands that day...

To know how much of the company you own, you need to look at total shares outstanding.

Good luck!

Ken Clark
Certified Financial Planner