Stocks & Shares Training

Prior to investing in the stock market, potential investors should acquire training in financial trading. Basically, potential investors need to know what stocks and shares are, how they trade and the climate of the marketplace.

Stocks

• Stocks, also known as shares or equity, are shares in the ownership of a public company. The more stock you own, the more of the company you own.

Trading

• Most stocks are traded on exchanges, where buyers and sellers trade and exchange stocks, such as the New York Stock Exchange, located on Wall Street in New York City, or the NASDAQ, which is an electronic stock exchange.

Stock Prices

• The price of stocks fluctuate, dependent upon the market forces of any given day. Prices change because of supply and demand. The more demand there is for stock, the higher its cost will be; the less demand there is, the cheaper it will be.

Bulls and Bears

• The stock market is often referred to as a bull market or bear market. A bull market occurs when the economy is doing well, unemployment is low and stocks are rising in value. Choosing stocks during a bull market is relatively easily, since most are increasing in value. A bear market is the opposite.