Stock investing can be fun, also challenging, but if you are not familiar with them, matters can mix up in your head.
Just to be sure what stocks are, these are paper assets that companies issue when they want to raise money. When you buy a stock you will actually own a part of that company, so you become interested in how that company is doing.
Some basic informations are needed before you invest in a stock or in several stocks :.
When a company sells stocks, they must be registered with a stock exchange and have a ticker symbol. The symbol is the short version of the company’s name, and sometimes investors know that company by its ticker. Apple Inc. has the ticker AAPL, Google has GOOG, and they are both listed on New York Stock Exchange.
Stocks issued by large and stable companies are named blue chip stocks. Here investors feel more dependable and consider these type of stocks are the best. This is because the company that issues that stock is financially honorable . Usually the blue chip stocks give dividends. In US, some blue chip stocks are Procter and Gamble, McDonald’s, Johnson & Johnson, Google, Microsoft, Apple and many other.
What is a dividend ? .
When a company makes profits in a whole year or in a specific quarter, they can decide to give dividends to investors, so you can make money on your investment.
Blue chips are the big stocks, but there are also penny stocks, these are the stocks that have a low price . They normally trade below $5 a share, and tend to be more risky.
So when you buy a stock, do this properly. Start with the blue chip stocks, those companies that you hear a lot of news about, and then see how things are going. Step by step you can go into more detail.
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