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How The Stock Market Works

HOW THE STOCK MARKET sponsored by DAYTRADE WORKS THEWORLD The Worlds Largest Day Trading Fiem WHAT IS A STOCK? Companies need money to help them grow. They use it for all kinds of things, like buying materials to make their products, developing new products, building plants and hiring people to work. products To raise money, companies often split ownership of the companies into smaller "shares" that they sell to the public. The shares are also called "stocks." HOW IT WORKS? BUY A Stock Exchange is an institution SELL which hosts a market where traders can buy and sell stocks. TRADE Traders make money by buying the stock before the price goes up, and then they sell it before it goes back down. The price of the stock reflects the available information about the financial health of the company. Traders watch the stock rise and fall and make decisions to make a profit HOW TRADERS MAKE MONEY If you sold your stock on a day when the price of that stock is higher than the price you paid for it, you would make money HOW TRADERS LOSE MONEY If you sold your stock on a day when the price of that stock falls below the price you paid for it, you would lose money. INTERESTING FACTS: Approximately 630,000 companies are now traded publicly in the world. The Amsterdam Stock Exchange is the oldest in the world which was established in 1602. Nearly $61 billion are traded on NYSE exchange every day. Start Trading 50+ International Stock Markets Visit Day Trade The World T website today: www.daytradetheworld.com

How The Stock Market Works

shared by davidcameron23 on Apr 17
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an info graphic detailing how the stock market works brought to you by day trade the world.

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