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stock market system and how it works? - Marie - 10-15-2012 08:10 PM
im taking a class Basic Economices and i cant really find a really good answer about how the stock market works .... i was wondering if someone could tell me in a smiple way
thanks again
ps.... does anyone know of a good company that has stocks besides facebook and if it goes up and down all the time for stocks?
- Hello - 10-15-2012 08:19 PM
To make it simple, let's say you buy 100 shares of Safeway for $10 each. If Safeway's business is going good (sales are high.. good income) the price will then go higher depending how good it goes. If Safeway loses money, the price will go down. If it were to go up to, lets say $15 and you sell them all, that would be $1,500 with an earning of $500. Calls and put options are another story...
As for a good company, I really have no idea, sorry :|
- zorathruster - 10-15-2012 08:19 PM
Learn "capital". The term is a store of value that can be used in exchange. The management of capital involves various levels of risk. Bonds produce some low level of risk, stocks produce a higher level of risk but also a higher potential for return.
Facebook was over-hyped. The actual value of the company based on it's earnings should have been around 12-14 per share. The fluff that raised the per share price to 38 was exactly that...fluff. Once Facebook falls back to it's sustainable level of business production it will be worth a look.
- zuma - 10-15-2012 08:19 PM
It's an electronic.. Auction,.. matching up buyers and sellers