Learn stock market basics pdf
Your version of Internet Explorer is no longer supported and may not display all the features of our website. For the best experience, please update your browser with the latest version. The stock market may appear daunting at times, but it is a system that has proven to be effective and accessible for all types of investors. Think of it like an auction. Buyers and sellers are matched by the auctioneer to arrive at transactions that are agreeable to both parties.
It operates on the basic premise of supply and demand - there are no fixed prices; rather, prices are set based on what buyers are willing to pay and sellers are willing to take. The same is true of the stock market, but instead of physical objects, buyers and sellers trade shares of stock. So what is stock? When you own a share of stock in a company, you own a small fraction of the corporation. When the company profits, you may profit as well, and when the company struggles financially, your investment may struggle too.
In addition, shares of common stock come with voting rights, meaning that in addition to owning part of the company, you have a say in some decisions made by the company. The more shares you own, the stronger your voice in company matters.
Holders of preferred stock do not have voting rights. When you buy a share of stock, there is a paper certificate issued to you by the company. Investors used to physically keep these certificates, and some still do, but in today's electronic age, most brokerage firms hold the certificates in their own name on your behalf so that they can execute your trading orders more efficiently.
Stocks in publicly traded companies are bought and sold at a stock market or stock exchange. Stock exchanges operate like auction houses in the above example. They are marketplaces in which buyers and sellers come together to trade securities.
The NASDAQ and New York Stock Exchange NYSE are examples of stock exchanges. The exchange makes buying and selling easy. You use a stock broker like Scottrade who does business with the exchange.
You can buy and sell shares because your broker represents you on the exchange and facilitates your transactions. Because most stock buying and selling occurs in one place the exchangeit allows the price of a stock to be known every second of the day.
Therefore, you can watch as a stock's price fluctuates based on news, economic events, media reports, etc. Historically, stock trading was done in person at a physical exchange. Now, some exchanges like the NYSE still offer this option, but also allow trades to be made electronically. NASDAQ, on the other hand, is a completely electronic calforex currency converter where trades are placed via an extensive computerized network.
Corporations issue shares of their stock to the public to raise capital for growth and operating costs. The investors or people that bought the shares hope that the company will make a profit, meaning the stock price will increase. When a corporation is publicly traded, all of its financial information is available to the public.
The Securities and Exchange Commission SEC collects this information and makes it available to investors. When investors are trying to decide whether to invest in a particular company, they use a number of indicators company financial information, historical performance, expectations for the future, etc. Any specific securities, or types of securities, used as examples are for demonstration purposes only.
Stock Market Basics | Scottrade
None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security or account.
Such consent is effective at all times when using this site. Brokerage products and services offered by Scottrade, Inc. All investing involves risk. The value of your investment may fluctuate over time, and you may gain or lose money. In this instance, equity is defined as Total Brokerage Account Value minus Recent Brokerage Deposits on Hold. The performance data quoted represents past performance.
Past performance does not guarantee future results. The research, tools and information provided will not include every security available to the public.
Although the sources of the research tools provided on this website are believed to be reliable, Scottrade makes no warranty with respect to the contents, accuracy, completeness, timeliness, suitability or reliability of the information.
Information on this website is for informational use only and should learn stock market basics pdf be considered investment advice or recommendation to invest. Scottrade does not charge setup, inactivity or annual maintenance fees.
Applicable transaction fees download master forex trading platform apply. Scottrade does not provide tax advice.
The material provided is for informational purposes only. Please consult your tax or legal advisor for questions concerning your personal tax or financial situation.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an exchange-traded fund ETF before investing. A prospectus contains learn stock market basics pdf and other information about the fund and may be obtained online or by contacting Scottrade.
The prospectus should be binary options determine the trend charts carefully before investing.
Leveraged and inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. Investors should monitor these holdings, consistent with their strategies, as frequently as daily. Investors should consider the investment objectives, risks, charges and expenses of a mutual fund before investing.
No-transaction-fee NTF funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder or SEC 12b-1 fees. Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market.
It contains information on our lending policies, interest charges, and the risks associated with margin accounts. Options involve risk and are not suitable for all investors.
Supporting documentation for any claims will be supplied upon request. Consult with your tax advisor for information on how taxes may affect the outcome of these strategies. Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees. Market volatility, volume and system availability may impact account access and trade execution. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss, in a down market.
Third-party websites, research and tools are from sources deemed reliable. Scottrade does not guarantee accuracy or completeness of the information and makes no assurances with respect to results to be obtained from their use.
Thank you for visiting Scottrade. We have implemented a Skip to Main Content link and improved the heading structure of our site to aid in navigation with a screen reader. We are consistently making improvements to the accessibility of our site. If you are having difficulty accessing an area of the site, please contact us at accessibility scottrade.
Search Keywords or Symbol. Open A New Account. Text Resize RSS Print.
Noncore Investments Determining Your Asset Mix How Many Funds Do You "Need"? How Many Investments Should You Have? How Much Risk Can You Tolerate? Regulatory Trading Suspensions Trading Halts: Stock Market Basics The stock market may appear daunting at times, but it is a system that has proven to be effective and accessible for all types of investors.
Stocks So what is stock? Stock Exchanges Stocks in publicly traded companies are bought and sold at a stock market or stock exchange. Publicly Traded Companies Corporations issue shares of their stock to the public to raise capital for growth and operating costs. Call Us At Unauthorized access is prohibited.