How to Invest in Stocks ? A Beginner's Guide | Dividend paying stocks

You might have heard that people get rich in a day or lose everything in stocks. Everyone wants to be rich and thinks of investing in stocks to earn money fast. The most important thing is to ask ourselves how much do we know about investing in right stocks. Before taking any decision you should be aware about the basics of stock market and their modus operandi. This will help you decide whether you can invest and manage things well.

Stock Market is a place where you can buy and sell shares. Just like any other marketplace there is a buyer and a seller. A buyer has demand of purchasing stocks and seller sells them to earn profit. To get started, you would need an account for trading stocks which can be opened by a brokerage firm. You will have to pay them the amount that you are willing to invest and they would get the funds available for you to trade. Once you have the funds available in your trading account you can start buying and selling shares either over the internet or in person. The options to buy and sell shares would be through stock exchanges.

Stock Exchanges are the most important players of stock market. The main stock exchanges are NYSE, American Stock Exchange, Pacific Stock Exchange and all ECNs (Electronic Communication Networks). NASDAQ is also an American stock exchange and most of the trading these days is done by NASDAQ. It uses ECNs and other firms to trade. It is also the largest screen based electronic trading market in the United States.

If you are planning to buy shares; you will have to use one of the stock exchanges to start trading. For example? If you plan to buy shares online, you can login to your trading account and choose to buy shares of a specific company. Once you have placed the order to buy shares of any XYZ company; NASDAQ would look for any seller who is willing to sell that quantity of shares. Once it finds a seller it would transfer those shares to your trading account and would debit your account with the specified amount. This is how stock markets operate.

However, it is highly recommended to do thorough research and analyze the trend of the market before investing any funds so that you get an idea of whether it would be worth investing in a specific company during that period. If you do not choose wisely, you may end up losing money instead of earning it so ample research in the field is very crucial to earn any benefits. Also, do not invest all your money in stock markets. Understand the market trend, plan your investments and then invest accordingly.

Source: http://dividendpaying-stocks.net/how-to-invest-in-stocks-a-beginners-guide/

big brother spoilers big brother spoilers grocery stores lexus lexus amoeba georgetown