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Next on the agenda is understanding how a buy actually works
before we make that first call and start trading. There are a
couple of terms you need to learn.
Once you know the name of the company and the ticker symbol,
next you need to find out the price
Now that you have a broker picked out, what is the next step?
Well, that would be to actually open a brokerage account with them.
This is how it all works:
The brokerage will send you an application in the mail that you
need to sign and return. Along with
This is a very tough question and frankly it has no solid
answer. Why? Because not all brokerages do all things, and not all
of them do what they do equally well! Got that? Lets look and you
will see what I mean.
Let us suppose that we really think
Okay, now that we know what a stock exchange is, how does one go
about buying a stock? Can we just call up IBM and say, "Hi, I would
like to buy 100 of your shares?" No, we cannot do that. What we
need first is someone called a broker,
Did you ever hear on the television or on the radio something
like this: "The DOW rose 111 points today in heavy trading"? Do you
know what they mean by the DOW? And what are these points? Well it
works like this. The DOW Jones industrial average is the most
The problem at the onset was that there was no organized way to
find out which companies were selling stock, and which people
wanted to buy some. Like any type of "new" idea it took a while
before organizers got the idea of creating a "stock exchange"--a
central place that
Well, here is the long and the short of it. When companies first
decided that they could raise a bunch of cash selling "shares" of
their company in bit's called "stock," the concept went over pretty
well. In fact the idea started in New York on cargo ships in
What exactly is a "stock" anyway? Let's dive right in and take a
look at just what we are getting for our money. On the surface,
well, it's really not much. But the "idea" behind it is pretty big.
Basically, when you buy a "share" of stock, you are buying
If you are still reading this, you must be very interested in
what we are saying, and that is wonderful! Please continue. We feel
the following information will give you a great "beginning"
knowledge base from which to start your investing journey. If you
already have some level of market
Naturally, the next question is: "Okay, what is this magic
secret to making money instead of losing my shirt?" Well,
unfortunately, if you are looking for a magic formula, or some
deeply guarded "secret" you have come to the wrong place. The
answer to the question is this. If you