Everything you need to know about buying a stock

What is a stock? They are often referred to as stocks or stocks or property. All the relevant terms reflect the meaning of the stock. When you buy a stock, you are actually buying a part of a company, so you own a part of the company. Stocks can be listed through an initial public offering ("IPO"). This means that a public like you and me can buy and own a company at a specific price. Welcome to the stock exchange.

Where to buy? For citizens of the United States of America, they are on the New York Stock Exchange (NYSE), the American Stock Exchange (ASE) or the American Securities Dealers Association Automated Quotations System (NASDAQ) .You can even trade stocks from other OTC markets .

[Note] For example, for a country like Hong Kong it is referred to as the "Hang Seng"

How do you benefit from stocks? They generally follow the economy. If the economy is good, stock prices will rise. So this will win more profits. Some companies or stocks also issue dividends.

You also need to know what is called the price-to-earnings ratio. This ratio, which is the ratio of the price to the yield, P / E "will determine the level of the stock price relative to the company's earnings.For example, a ratio of 10 means that the price per share (average) is sold at approximately 10 times the earnings per share of the company.

But they are privately held, meaning that they have chosen to issue their shares only to members of management and to a number of other investors who are not publicly traded shares in the stock exchange center, and therefore are not Everyone can buy any company.

What is the market value? It simply means the value of the outstanding stock (the total number of shares multiplied by the market price per share.) You will always hear the term cap and cap. Capitalization means a large number of outstanding stocks.

How much can you earn from the stock market? On average, the stock market can give You must be aware of all the fluctuations in a very short period of time.As a rule of thumb, if you can invest in a bond investment (long term investment) then you should invest in the stock anyway. Short-term mentality investment is not suitable in the stock exchange.