Stock Investing 101

Stock market investors

Despite the New York Stock Exchange’s notoriety, it was not the first stock exchange in the United States. That distinction belongs to the Philadelphia Stock Exchange, which was founded in 1790. Are you considering becoming a first time investor? Beginner investing can be relatively confusing, so read on to learn some straight forward investment tips.

Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Wondering how to invest stock? There are a few options available.

Some companies allow you to buy or sell their stock directly through them without using a broker. These are referred to as “Direct stock plans”. This saves on commissions, but you may have to pay other fees to the plan. Some require minimum amounts for purchases as well.

Using a discount or full-service broker is another way to stock market invest. Brokers buy and sell shares for customers for a fee, known as a commission. The commission is a small sacrifice to pay for having stocks invested for you.

Before you start investing, you need a basic understanding of what a stock is, what it means to invest, and how to evaluate stocks. Get some basic books in stock investing. Aim to read every book on investing you can get your hands on, including stock options newsletters, stock market investing for beginners books, and stock market investing tips online.

There are tons of valuable stock options newsletters that you are able to subscribe to via email as well, which will give you a continuous source of education.

Another helpful tip is to practice. Trade stocks on paper before actually trading stocks with real money. Record your stock trades on paper, keeping track of dates of the trades, number of shares, stock prices, profit or loss, including commissions, taxes on dividend, and short or long term capital gains taxes you would have to pay for each trade.

Stock investing can be confusing, so do your research. Consult stock options newsletters and resources, contact a stock broker, and do a lot of reading. Whether it be options newsletters or advice from a working stock professional, soak up all the information you can. Learn more: