Market
Depending upon the size of the company, they are listed on the New York
Stock Exchange, the NASDAQ, American or the Over The Counter Exchange. There
are also many Foreign Exchanges are world wide. We will concentrate on
the United States for the mean time.
The New York Stock Exchange will be the main exchange. This is where the
big boys are, the general recognized company names. The blue chip stocks and
the most common name, the Dow Jones. The Dow is comprised of 30 companies that
are a select group in order to set one of the standards for what the market is
doing.
There are several other "market indicators" or indexes. They
include: NYSE Index, S&P 500, NASDAQ and a few others. Take a look
at all of them to give you a better idea of over all market movement.
There are many factors involved with the way the market react and or the
way each stock will act. Some react differently depending upon the news. The
major factors can be basic economic stats. Some of these are: Dollar strength,
overall money supply, interest rates, inflation, recession, unemployment
figures, new housing starts. Over time you will become aware of
these.
Many factors are involved with the company.. Earnings reports, profits and
losses, insider buying or selling. Shifting of Vice Presidents, CEO resigned,
pending lawsuits, mergers, more than you could imagine will effect the price
of the stock.
A broker or stock analyst will put out a buy, sell or hold rating for
various reasons that will effect a stocks movement. This might occur by
them adding or pulling a stock on their recommended list. Just remember this
is just and opinion! The point is that there are so many different things that
can happen to where there really is no logic at all. Do not beat yourself up
over trying to learn it all.
There are many free sites for your use with a lot of
information. Yahoo finance will give you updated news and reports on both the
Economy and Company information. Get the company phone number and call them and ask them to send
you their annual report and 10-Q (Quarterly) statements. There is a wide range
of good information in those reports as you start to figure out what the
company does and what product or service they offer. You are investing
in this company so find out as much as you can.
|