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Stock Market For Dummiesby Samo YanezicEvery single experienced stock market broker definitely was a newbie in the market once upon a time and that is the reason why, one does not have to worry about reading this article - Stock Market for Dummies. You definitely need a receptive mind, an ambition to make it big in the stock market, and a mentor who can give you some good advice about stocks and shares. But in the absence of a mentor, these little bits of knowledge and information about the stock market are going to do the job just as well. A stock share is the smallest unit which shows ownership in some given company's assets. Just imagine that you have 20,000 shares of say, General Electric. (Rich man!) It means that 20,000 share units out of say, 200,000 share units launched in the market by General Electric belong to you. 51% or more of the total shares in a company means that you have the ruling hand, and can make decisions about the company policy and finances. Having some stocks and shares in a company means that you can vote on important matters which are pertaining to the general running of the company. Every single shareholder is going to get a share of the profit, in the shape of dividends, when the profits are declared. But there is a downside here. If you own stock in a company and it loses some lawsuit and has to pay a lot of money in judgment, your stock prices might go down. If the company goes bankrupt, it means that your money is lost. But the creditors of that particular company do not have any right on your own personal assets. The stock market has 2 different types of shares and stocks. Common stock is what is available in the market today, and that is the stock, which is going to "go up" or going to "go down". Just imagine that you have bought 100 shares in a very profitable company. You are going to get a share of the profits the moment the dividends are declared. Any information given in the stock market for dummies needs this particular point cleared, without any confusion! On the other hand, preferred stock is rather more exclusive because you are not going to have all the rights which are given to common stock . Nevertheless, a company which issues preferred stock is going to pay you a consistent dividend and you are going to get "first call" when the dividend is distributed, if you have preferred stock over common stock. Stock market for Dummies now comes to another important term used very often in the stock market investment. Even a dummy knows that investment is the money, which makes the stock market go around. Your money is going to be invested in such a way that it earns you a profit. Your job is to make sure that your money gets you healthy returns. Once you have understood the idea behind profits and losses and investing your money, you are going to buy and sell the shares in the stock market. More demand for one particular share is going to raise up its price. This means you can sell at a profit in the stock market( in stock exchanges.) Once you start selling at a profit, you can consider this lesson in the stock market for dummies to have been successful!
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