Making Your Money Grow Day Trading Stocks
One way of making your money grow is investing in the stock market. Stocks are how companies grow without securing bank loans. The investor buys the company stock (shares) and receives interest in the form of stock dividends. Share holders can affect the operation of a company.
Each year, there is a share holders meeting and different issues are presented for the share holders to vote on. The greater the number of shares that an investor has, the greater the number of votes the stock holder can exercise.
There are several categories of stocks. Income stocks provide revenue to the stock holders in the form of dividends. Growth stocks are shares sold by companies that reinvest their profits to increase the size of the company.
You can invest in stocks online, through stock market investors or directly, as in the case of Coca Cola and a number of other companies. Some companies provide their employees with stock options allowing them to purchase stocks at a given price for a particular period of time.
There are also Over the Counter Stocks. These are not listed on any exchange and are sold by smaller, riskier companies that do not meet the requirements of the exchanges.
There are a number of reasons why stocks rise and fall in value. If a company is doing well, the value of a stock will increase. Conversely, if a company is not doing well, its stock prices may fall. Other factors affect the market value of shares. The price of crude oil will affect the market value.
Disasters or wars will force prices downward. The introduction of new federal regulations for an industry will have an impact, depending on how the legislation affects production. Changes in company management also have an affect on stock prices.
Everyday the stock averages are compiled and made public. The Dow Jones Industrial Average provides details on 30 large industrial stocks, including General Motors, Goodyear, IBM and Exxon. The Standard and Poor 500 Index provides averages for 500 large companies. There are three major stock exchanges in the United States. These include NASDAQ (National Association of Securities Dealers Automated Quotations), Amex (American Stock Exchange) and the New York Stock Exchange.
Today anyone can buy or sell stocks, thanks to the internet. Investment companies permit their clients to use their services to research a stock or give advice on buying and selling. The investor is then able to purchase or sell stocks online at a cost of so much per "trade."
It is truly a great way to make money, but you should educate yourself before you jump on in. This ebook is a great starting point to get into day trading stocks.