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stocks
What does it mean to trade stocks?
What is a stock even? lol.. I've never understood that. I've never understood what the stock market is.. what it does.. what it means when it goes up or down, lol
Please explain. thanks.
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A stock is a chunk of a company. You pay a certain price for your stocks, depending on how many shares you get and how the company is doing that day. The value of stocks always fluctuates. For example, if you bought a stock for $10 per share, the next day it could be worth $11. If you wanted to, you could sell your stocks that next day, and make a dollar on each share. "Trading stocks" is when you sell or buy stocks (because someone else is either buying them from you or selling them to you.)
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Stocks can be really confusing. Pretty much, each stock represents a share of the company. If your stock is blank%, that means the person owns that percent of the company.
You buy your portion of the company. If the company does well, typically your stock rises. You make money by investing money in a company that is doing well.
If you're going to buy a stock, you buy it when it's at a low price to you, then sell it when the share grows because that means you made money out of it.
That's pretty much the basics of it. Here's a site that explains it, probably better than I can:
[Link](Mouse over link to see full location)
Darby(:
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