Upload Photo & Post an assay by Admin
| Make an Investment in stock market | |
| Invest in stock market is extremely risky and can be a big headache. As soon as someone puts their savings to stock market, her or his life will not be the same. Stock market in this internet age is so different and so unstable. A company's market capital can be swing a few hundreds of billions within a week and that is not uncommon. Most stock buyers are who first so curious about a popular company such as google, Facebook, Netflix or Amazon because these companies are offering a lot of free services for users to enjoy. From a curious user to a stock buyer will not take long. A new stock buyer often is falling in love with the company and starts putting her or his trust to the company even though she or he has no knowledge of how much money the company makes per a quarter or in a year. These new stock owners just don’t care and they just spend their money to the company that they love. I want to take a pause to explain briefly what is stock? Stock is an ownership certification of someone who puts her or his money to the company and that money are used to pay employees, supplies, and a lot of other things to operate the company. Stock is usually divided into many smaller pieces so there are more than one individual can own them. If a stock is not trading on any stock exchange, its value is solely determined by everything the company has. Everything includes cash in a bank, equipment, payment made to employees monthly or annually and so on so forth. Let’s say a company is owned by 4 individuals and the company is valued (meaning adding up everything it has) equals 4 millions of dollars so this company has total of shares is 4 shares and each owner has one share. Now the four owners have decided to sell their shares to public and if they only have 4 shares to sell that will not be suitable to happen since not many people has a million to purchase and if they have a million they don’t to risk all in just one company. Therefore the four owners dicides to divide 4 shares into 100 million smaller shares at a smaller price. Now we have 100 million shares and these shares are owned by thousands of individuals. This is when the price of each is determined by majority of shareowners. If a more than 50% of shareowners think that this stock will be lowers in next couple years they start selling them. If there are too many selling at once, stock price begins to fall. But where do these owners get the idea of dropping the price? They get it from media and especially those offer a no charge news. (Will be continued) |