Financial Investments: What is Stock Market?

Stock Market is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. It is where you buy or sell stocks/shares of a company that is publicly listed. Be a part owner of the company.

How to Earn money in Stock Market?

1. The stock market makes it possible to grow small initial amount of money to a large sum through capital gains.

2. When Companies make profitable gains, stock market investors make money through Dividends that company is paying out.

Will you lose in the stock Market?

Possibly , investors can lose money if the companies whose prices of the stocks goes down and the investors sells the stock at a loss.

Terminologies:

Public Listed Company - a company that has issued certificates through an Initial public Offering (IPO) and is traded in one of the stock exchange.

Securities and Exchange Commissions (SEC) - companies must meet the required set of requirements including disclosure of financial statements, annual reports and status of the company. SEC will determine if the company is allowed to be listed for trading.

Investors - are group of people, company or individual who invest money in company shares.

Capital Gain - the difference between the original purchase price and its current market price.

Dividend payout ratio - the percentage of distributable earnings paid out as dividends.

Bear Market - a market which share prices are being driven down by selling activities of pessimistic investors

Bull Market - a market in which share prices are being driven up by the selling activities of optimistic investors.

Bid price - the price that a market maker or dealer will pay to buy financial asset

Is Stock Market Risky?

Yes, Stock Market is risky and you can loss money without proper knowledge and mentors. As Brother Bo Sanchez said "85% Of People Lose Money In The Stock Market and if you don't want lose money, Be Part Of The 15% Who Earn Money in the Stock Market if you follow the specific investing method."

You need to control your emotion and don't panic. To learn more about stock investing click here and if you want to be a part of Truly rich club stock market investing click here.