Investing Basics – Stock Market 101 Guide<\/p><\/div>\n

Before diving into the specifics of investing, it\u2019s important to understand exactly what stocks and the stock market are.<\/p>\n

<\/span>What Are Stocks?<\/strong><\/span><\/h3>\n

Stocks<\/strong>, also called shares or equity<\/strong>, represent ownership in a company. When you purchase stock in a company, you purchase a fractional ownership of that business. Stocks are traded on stock exchanges<\/strong> like the New York Stock Exchange (NYSE) and Nasdaq.<\/p>\n

The price of a stock fluctuates based on supply, demand, earnings reports, market news, and other factors that impact a company\u2019s perceived value. If the business performs well, demand for the stock typically rises which drives up the share price.<\/p>\n

<\/span>What Is the Stock Market?<\/strong><\/span><\/h3>\n

The stock market refers to public stock exchanges<\/strong> where investors can buy and sell shares of stock. Some key points about the stock market include:<\/p>\n

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• The stock market provides companies access to capital in order to grow their business. This is done through the initial sale of stock in a public offering.<\/li>\n
• It gives investors part ownership of a company.<\/li>\n
• Overall stock prices reflect investors\u2019 confidence in the economy as well as expectations for individual companies.<\/li>\n
• For investors, it provides a way to grow wealth over long periods of time. Share prices and dividends generally rise as companies grow profits.<\/li>\n<\/ul>\n

  Now that you understand the basic concepts of stocks and stock exchanges, let\u2019s explore how to actually invest in the market.<\/p>\n

  <\/span>How to Invest in Stocks<\/strong><\/span><\/h2>\n

  

  Investing Basics – Stock Market 101 Guide<\/p><\/div>\n

  Investing in stocks involves following a systematic approach. Here is an overview of the key steps:<\/p>\n

  <\/span>1. Determine Your Investing Goals<\/strong><\/span><\/h3>\n

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  • What are you investing for? Retirement? Saving for a house? Building long-term wealth?<\/li>\n
  • How much time do you have to invest? Shorter timeframes generally call for more conservative investments.<\/li>\n
  • What is your risk tolerance? Can you stomach market volatility or do you need lower-risk investments?<\/li>\n<\/ul>\n

    Be clear on your purpose and timeline for investing prior to putting your money into the market.<\/p>