Stocks Investing Guide
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Understanding Basic
Stock Market Investing Information & Concepts
If you're going to play the game, you need to know the rules. Read on for information about:
  • What are corporations?
  • Investing in stocks versus other types of investments
  • Trading on the NASDAQ and NYSE
  • Supply and Demand
  • Market Caps
  • Stock Buying and Selling
  • Limit Orders
Continue reading the investing articles below to start learning about these basic stock market pricipals.
Articles on Basic Stock Investing Information
 
Corporations
Corporations are either sole proprietorships or partnerships: if a corporation as a sole proprietor, that means it's a one-owner company. Partnerships mean that two or more people are involved financially in the company.

Investing in the Stock Market
People who make fortunes in the stock market, usually start out by investing a smaller fortune. Some people speculate on stocks, buying only when share prices have dropped and they believe the drop is temporary, or buying newer stocks at low pieces, in the belief that they will someday rise again.

Why Stock Prices Rise and Fall
There are many reasons that lead to the rise and fall in individual stocks and the stock market in general, but the major reasons are pretty easy to understand. The value of an individual stock, like anything you would buy at the grocery store, is based on what people are willing to pay for it.

Buying Stocks
You can buy shares of stock, bonds or mutual funds direct from a broker, or you can open an account with an online brokerage, paying by Paypal or credit card. You usually have to make a minimum initial deposit, and fill out forms with the brokerage to cover things like beneficiaries in case you die with your investments intact.

Limit Orders
A limit order is a way of limiting your risk by having a plan about when to buy or sell individual stocks. When you have a limit order in effect, if your stock takes a tumble, it doesn't have to fall all the way to the bottom of the chart before you can get your money out.

Market Cap
"Cap" isn't as mysterious as it sounds: it's definition is short for "capitalization", which is the total value of the corporation's existing stock. If my hypothetical, nanno-micro-cap has 200 shares and trades at $8 a share, you could define my market cap as a whopping $1,600.

Supply and Demand
Know more about how stock prices are affected depending upon the Supply and Demand.
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How to stick to a household budget
and have extra
money for investing

1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

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