Investing For Dummies | Stock Market For Dummies - How Does The Stock Market?

How does the stock market work? What is an action? Both are reasonable questions to ask before deciding to put their money in the stock market. To help you understand some important concepts about the stock market, in this article we will cover:
What is a file?
Why would a company issue a stock?
What is the advantage of a stock?
Stock Market for Dummies - How does the stock market?

What is a file?
A share represents ownership of shares of a company. Any person owning a share of ownership of a company called a shareholder or shareholders of a. As a shareholder, you will receive a stock certificate that shows owning a piece of a company.

Why a company to issue a file?
To increase the capital of a company can borrow money from the bank or sell (issue) of shares of its ownership (equity) to the public.

When you own a piece of a company that 're called a shareholder or shareholders of a. Proof of ownership of the stockholders' s in an enterprise are documented in a document called a stock certificate.

What is the advantage of a stock?
If you own shares in a profitable company that can make money in two ways: by receiving dividends or selling their shares at higher values.
A dividend is a portion of corporate profits paid (usually cash) per year for a shareholder. Not all companies pay dividends. Shares of the company that pays no dividends are called growth stocks. Income populations are the shares of the company paying the dividends.
Stock Market for Dummies - How Does the Stock Market?
A stock market is where trading activity (buy and sell) shares and other securities (like bonds) takes place. A stock market is orguanised on stock exchanges in the trading of shares physically or virtually through a team performs. There are few major stock exchanges in the world. / Div>

There are three main stock exchanges in the United States:

The New York Stock Exchange (NYSE).

The American Stock Exchange (AMEX).

The National Association of Securities Dealers Quotation (NASDAQ).

The other major securities exchanges are:

London Stock Exchange (LSE) in the United Kingdom.

Frankfurt Stock Exchange in Germany.

Euronext, which contains pockets of Paris (France), Brussels (Belgium), Milan (Italy), Lisbon (Portugal) and Amsterdam (Netherlands).

The NYSE and Euronext have merged and now called NYSE Euronext.

This concludes the basic knowledge about stock market for dummies and how the stock market. For more information about investing in the stock market in our section "The stock market information"