| Learning how to trade stocks can be a very | | | | San Francisco Exchanges and have merged with the |
| profitable venture and if done the right way, it can | | | | NASDAQ stock market. These are all listed |
| put you in the financial freedom you have always | | | | exchanges which mean that brokerage firms send |
| dreamed of. When you buy stock, what you're | | | | out people who are considered specialists in trading |
| actually doing is buying a part of the company. The | | | | stocks. These specialists are responsible for all of the |
| good thing is, you don't have to get up everyday | | | | trading of certain stocks. The number of shares that |
| and deal with all the stuff that goes along with | | | | are traded within a day is known as Volume of which |
| owning a company. All you get to do is collect on the | | | | is counted by the specialist. The specialist then |
| profits, how cool is that? The stock market actually | | | | reports to the exchange along with any other |
| dates back to the 16th century with the Dutch as a | | | | important information about the size and price of |
| way of financing their businesses by using the money | | | | each trade. |
| from people who bought pieces or shares, of their | | | | NYSE is still traded face to face everyday, just like |
| company. In return, the company would "pay back" | | | | you see on the news when they talk about the |
| their investors with the wealth that company | | | | stock market. Trading stocks are like auctions so |
| generated when it started earning profits. | | | | there is no set price in the stock market. The last |
| Variety is the spice of life and just like anything else | | | | trade sets the price of that stock however, the |
| worthwhile, there is a variety in the kinds of stocks | | | | actual price of a stock is who ever is willing to pay |
| that are available. Common stock is the most | | | | the highest price for it at any moment. When you |
| common stock available today and anyone can own | | | | own a share of stock, what you hope for is a high |
| one. There are no restrictions on who can purchase | | | | demand of that stock, the higher the demand, the |
| common stock and it represents a person portion of | | | | higher the price, the better for you. Often though, |
| ownership in a company. When you own stock, you | | | | things work the other way and a company's stock |
| are considered shareholder and the more | | | | does not do so well in the stock market and demand |
| "shareholders" that own a portion of a company, it | | | | is low, this makes the stock low, so shareholders |
| acquires more assets which generates more money | | | | have to sell low. If you're a smart trader though, you |
| and in turn increases the value of the company. This | | | | know that this can happen all in one day and the |
| drives up the value of the stock and makes it worth | | | | next day things could change. Some stocks are |
| more than you first paid for it, turning a profit for | | | | meant to be more of a long term investment which |
| you. | | | | means the longer you hang on to a stock, the better |
| One of the biggest stock exchanges in the world is | | | | your chances are of making a good profit. |
| the New York Stock Exchange (NYSE), there's also | | | | We hope this article has helped a little with your |
| the American Stock Exchange (AMEX) that is | | | | knowledge of the stock market. Good luck and |
| composed of the Philadelphia, Chicago, Boston and | | | | happy trading. |