A-NIT©
A Novice Investment Tutorial©
Third Edition
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. Foreign Exchanges are world wide, let’s concentrate on the United States for the mean time.
The New York Stock Exchange will be the main focus at the present time. This is where the big boys are, the generally 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 a standard for what the market is doing.
There are several other "market indicators" or indexes. They include the 30 Industrials, 20 Transportation, 15 Utilities, and 65 Composite in the Dow Jones Index alone. Other indexes include the NYSE Index, Standard and Poors, NASDAQ and a few others. Take a look at all of them and it will give you a better percentage of gains or losses.
There are many factors involved with the way the market reacts or for that matter the way each stock will act. Some react differently depending upon the news. The major factors can be basic economic stats. Dollar strength, overall money supply, interest rates, inflation, recession, the list can go on forever. Over time you will become aware of these. But, do not loose any sleepover them now.
Many factors are involved with the company in itself. 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 will put out a sell or buy rating, put a stock on their recommended list. Just remember this is just and opinion! The point is that there are so money different things that can happen to where there really is no logic at all. Do not beat yourself up over it all! There is enough to worry about in life itself.
Do be careful with advice from the Internet. Do not react from a "Hot tip" or any other advice. These are normally deviant people trying to manipulate individuals to buy stock that they own their own portfolios. They want to drive up the price and then they will sell off and laugh at you for being such an idiot. You will only loose money in the long run. Do your own research and stay away from hot tips!
Look in the library for the financial section, normally in the reference section. Many manuals are for your use with a lot of information. Get the company phone number and call them and ask them to send you their annual report, 10-Q and 10-K statements. Read as much as you can before investing.
Written By Vince
of TeamWhiskers
The 2002 U.S.-C.A.T.S. World Cup Champions
Professional Catfishing
www.teamwhiskers.com |