Could someone explain to me the meaning of World Trade Center, Stocks and Investments?
Posted by admin on 30 Jul 2008 3:25 am. Filed under Investing.
BT asked:
I have never understood it. I watch those Americans on CNN staring at some tickers with weird names from companies and numbers like NASDAQ, and suddenly you see them jumping up and down, trowing papers in the sky, cheering and then panicking. It’s looks like they are having a party or something.
I have never understood it. I watch those Americans on CNN staring at some tickers with weird names from companies and numbers like NASDAQ, and suddenly you see them jumping up and down, trowing papers in the sky, cheering and then panicking. It’s looks like they are having a party or something.
What’s the purpose of this? I have asked this a couple of times in real life and never understood the importance of this?
Why average people make investments? What are stocks?
What’s the purpose of these certain show (I forgot the name) that I think is shown on NBC where there is this crazy guy telling people which company is “hot” right now and which one is not.
On August 1st, 2008 at 10:19 am
yes read some articles on those
On August 3rd, 2008 at 11:38 pm
Some of it is information. The remainder is just opinion.
On August 7th, 2008 at 7:12 am
The best and easiest to understand place to learn these things is this website:
US version
UK Version
Investing is basically putting aside money now in order to turn it into a bigger pile of money in the future (e.g. earning interest on a savings account).
Stocks (also better known as “Shares” in the UK) is a form of investing where you purchase a stake of ownership in a company…. then selling it later on when that stake is worth LOTS more than you paid for it.
One of the best examples of this working is this guy’s life story:
Also, owning Stocks (part ownership) of a company entitles you to “dividends”….. where the company pays it’s investors (stock holders) a portion of it’s profits as a kind of thank you gift for having enough faith in the company to invest their money into it -usually the amount of money the company has going spare, divided by the number of stocks held by investors.
As a rough example: $1,000,000 split between 500,000 shares being held by investors at the time it was worked out = $2 per share (though not normally that much.. usually closer to $0.10).
So, if, for example, you bought 5 shares in that particular stock, that’s $10 earned by doing nothing… which you can then re-invest in more shares…. and therefore (hopefully) get paid even more dividend money next time round (in addition to the value of that stock hopefully rising at the same time)
The main reason people invest is so they can keep living comfortably on more than just their pension when they’ve retired from working + also so they have a bit of extra money in their pockets to spend on fun things than if they just lived on what they get paid by working (and do so without getting themselves into monster borrowing debt).