Stock Markets Exposed

Can someone please explain how buying and selling shares on the stock market works to make money for you?

My two most recent jobs have been for big, global companies. Both have mentioned buying stock (I dont know the correct terms to use here) as a way of making money?? My current job is Walmart and some people have been telling me about how they buy shares and then sell them when they need money??? Does that sound right? How does this work?? Im all for making extra money.

Public Comments

1. All companies are made up of shares. Small companies maybe 2 shares, big companies probaly millions of shares. Owning shares, is basically owning a part of that company. The value of these shares go up and down depending on many factors including the local economy, the position of the company , whether the company is making losses or profits. People invest in shares in companies that they think will increase in value. Once it has, they can sell the shares at a profit. This is called share trading. Most companies also pay dividends each year, which is a distribution of profits to shareholders.
2. Not as easy as it sounds, but it means you buy shares when they are low in price, when you think they will move up. Then you sell when they are up. OR you think a stock will drop in price, you sell shares of the stock (even if you don't have any). Then you buy them back when they have dropped in price. The difference between the buying and selling price is your profit (after expenses and taxes)
3. This is how it works.... You buy a stock for 10 dollars a share. You buy 5,000 shares at 10 dollars each... 10 x 5,000= $ 50,000 The next day it goes up by 2 points to 12 dollars a share... 12 x 5,000 = $60,000 You made 10,000 in 1 day.
4. very much possible... I recently read in biz magazine about a lady who is the best analyst for credit suiss. as you said, companies have research analysts...who's job is to identify best stocks (shraes)...and best price to buy...and to sell... Chris www.forexaim.com
5. Firstly, think about companies you like. This may not be obvious, but maybe consider your favourite stores or products - why do you like them? There must be something you like. Identify what that is and ask yourself - does these appeal to a mass market? Then look at the share prices - are they historically high or low? Do some research - visit the websites - what's happening with the companies? What do the latest reports look like? What's the outlook? Go with your feelings, but wait for a market fall. There's a possible one coming re UK hostages in Iran - "a buying opportunity". Wait for it to fall. It may fall again. A few weeks pass...... maybe months...... and the dust settles. By then you should be watching your chosen stocks closely and when you see a rising pattern start, BUY. Please remember one thing - never, ever, ever borrow money to invest. It's a gamble - whoever told you the great tale of the bet they lost? If it's your own spare $, buy it, keep it and chances are it'll do you right at some point. Good luck $!