What Is Stock Market Investing?

Stock Market For Dummies Lesson 1 - The stock market is a trading exchange where you can buy and sell shares of stock of different companies. The price of every company's stock is driven by supply (the number of shares available) and demand (the number of shares people want to buy).

If you like a company and think they will do well in the future, you will want to buy stock. However, if other people think the same way and also want to buy that company's stock, the stock price will go up because there will be lots of people wanting to buy (demand).

In just the opposite way, if a company is perceived to be doing poorly, there will probably be very few people wanting to buy the stock and more people wanting to sell it. In this case, the price of the stock will go down because there will be more sellers (supply) than buyers (demand).

Stock Market investing takes place mostly at the two biggest exchanges which are the New York Stock Exchange (NYSE) and the Nasdaq. These two exchanges handle the bulk of the
trades. You can invest in stock market by buying stock through a telephone call to your broker or by making the trades yourself on your computer. Being able to make a stock trade yourself online is something that has only been possible in the last 10 years or so.

The best way to learn about the stock market for beginners is to read as much as you can. Understanding the stock market is a big task and there are many free resourses on the Internet including this website.

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Amit said...
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