Stock Markets Exposed
how you make money in the stock market?
say you want to invest $100,000 into apple (AAPL) stock. The stock price is around $180. That allows you to buy around 555 shares. Now with this, if the stock goes up $5.00 in one day, does that literally mean that each of your shares has gone up a value of $5 meaning you have profited $2775? (555 shares x $5 profit each) or does it work differently? and also if we do the stock purchasing and things like that online are there lots of fees?
Public Comments
- It's not doing well now. I would wait.
- umm heres some websites for stocks google txx (toronto stick exchange) and the new york stock exchange google that and use microsoft excel im doing thiss in school for a project my teacher did it once he earned about 10,000 he taught me things so its all cool and microsoft give tutorials too
- i recommend options express if youre considering online trading. there are going to be fees with any online broker because they have to go to the stock market and trade for you. I'm not sure about how profits work. read the howstuffworks article on stocks and investing. that may answer a few questions. oh and yah don't invest in apple right now. i'd suggest defense industry and hotels.
- it works just like that. there are fees called front loads that stock brokers like to throw at you. front loads can come in many forms. but be careful investing. the market is kind of volatile right now. its quite a gamble. get some high yield mutual funds. diversify. deversify
- "Front loads" are when you buy certain mutual funds, not stocks. With stocks there is a commission or buying fee from the online broker. It ranges from around $4 (from Sharebuilder ) to a couple hundred dollars by full service brokers. Zecco and customers of I think Wells Fargo can trade a certain number of stocks for free. They make their money by the spread or difference between what you buy the stock for and what they buy the stock from the other guy to sell to you. No such thing as a free lunch. Profit - If the stock goes up $5.00 in one day that does mean each of your shares has gone up in value by $5 and you make an "unrealized" (because it is just a paper profit which maybe lost the next day) profit. The profit becomes "realized (or real cash in hand) when you sell at a higher price than you bought the stock.
- avoid picking individual stocks to begin- try etfs that are based on sectors or otherwords. try browsing them at http://instantetf.com -- if you are just starting off investing you may want to try a discount broker. Especially if you're putting in $10 or less. there is one free commission broker -- http://www.freestocktrades.net -- be careful and good luck!
