Share market tutorial in Kurnool – Capital market courses in Kurnool – Online share trading courses in Kurnool
The stock market can be intimidating for any new investor. There are many complexities and confusing terms that can lead to problems (not to mention loss of capital)for anyone trying to acquire stock trading education. So…. what should a person do to protect themselves while learning the basics of the market?This stock trading education article discusses the process of buying and selling shares, and explains the fundamental issues of how investors gain or lose money in the market. As you’re probably aware, a share of stock is actually a portion of a company. You, me, and the rest of the stock holders are the actual owners of a company. So when the company makes money, theoretically the owners (stock holders) share in the profits. Unfortunately they also (at least indirectly) share in the company’s losses as well.
Here are the basic steps involved in the trading of stocks. This is the crucial element to any stock trading education course: The first step is to open an account with your friendly broker and make an initial deposit. Alternatively, if you feel comfortable, you can open an account at a self-trading site such as Scottrade. Of course you need to remember that self-trading companies offer no advice, and little to no assistance. Any stock trading education that you require will have to be acquired from a different source. For purposes of illustration, we’ll start with a fictitious $1,000.
We’ll use 3M as an example. You indicate your interest to your stockbroker, who looks up 3M (MMM). He punches MMM into his quote request system and asks for the current market price (supplied from the New York Stock Exchange) which is $81.18. He explains to you that at $81.18, your $1,000 will buy 12 shares, with a little left over.
You put in a bid with your broker for 10 shares at the current market price. Your broker will charge you something in the neighborhood of $30 (does that seem excessive to you?). Your broker will then enter the order, and then he’ll calculate the exact price you will be charged for those 12 shares. Here’s the math: 12 (the number of shares) times $81.18 (the current price for the shares on the open market) for a total of $974.16, plus $30 (the broker’s commission, don’t forget he has to eat too), for a grand total of $1004.16.
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