How to Profit With Stocks and Bonds
So what exactly are stocks and bonds? Stocks are the shares of a company that are sold to the public.
When you purchase shares in a company you become a 'stockholder' for that company.
This basically means that you own a small portion of that company and as a result will be paid a share of the company's earnings.
That portion of earnings that you earn is called dividends.
As a company grows and becomes more profitable the price of the stocks increase.
Also if the company discovers something new or has a major breakthrough it can cause the stock prices to increase dramatically.
You can then sell your stocks for a higher price than you paid for them and make a nice profit.
Stock trading can give you high rewards but can sometimes also be high risk.
Just as a company's stock can increase in price it can also decrease in price.
It is important to do research on the company's that you choose to invest in and you may be able to get a feel for the company and which direction its stocks may head.
Bonds are mainly issued by the government and work in such a way that those who invest in bonds are lending money and in return are being paid a fixed interest rate.
Bonds are more of a fixed income on an investment.
In the stock trading market you will come across the terms trading and investing and it is important to know that there is a difference between these.
Investing is when you invest your money in one or more particular shares and wait for a long period of time for the stock to mature.
This can range from a few months to a few years while you gather earnings by way of dividends and then when the time comes you will cash in your shares to earn a profit.
Trading is when you are buying and selling stocks on a more regular basis and will only hold onto the shares for a short period of times, being maybe just a few days or a few weeks.
Investing in the stock market is one very good way to build yourself a nice little next egg for the future.
There is a lot of information available online about the stock market making stock trading easier than it ever has been.
Do your research and find the right stocks that you want to invest in and start watching your bank balance grow.
When you purchase shares in a company you become a 'stockholder' for that company.
This basically means that you own a small portion of that company and as a result will be paid a share of the company's earnings.
That portion of earnings that you earn is called dividends.
As a company grows and becomes more profitable the price of the stocks increase.
Also if the company discovers something new or has a major breakthrough it can cause the stock prices to increase dramatically.
You can then sell your stocks for a higher price than you paid for them and make a nice profit.
Stock trading can give you high rewards but can sometimes also be high risk.
Just as a company's stock can increase in price it can also decrease in price.
It is important to do research on the company's that you choose to invest in and you may be able to get a feel for the company and which direction its stocks may head.
Bonds are mainly issued by the government and work in such a way that those who invest in bonds are lending money and in return are being paid a fixed interest rate.
Bonds are more of a fixed income on an investment.
In the stock trading market you will come across the terms trading and investing and it is important to know that there is a difference between these.
Investing is when you invest your money in one or more particular shares and wait for a long period of time for the stock to mature.
This can range from a few months to a few years while you gather earnings by way of dividends and then when the time comes you will cash in your shares to earn a profit.
Trading is when you are buying and selling stocks on a more regular basis and will only hold onto the shares for a short period of times, being maybe just a few days or a few weeks.
Investing in the stock market is one very good way to build yourself a nice little next egg for the future.
There is a lot of information available online about the stock market making stock trading easier than it ever has been.
Do your research and find the right stocks that you want to invest in and start watching your bank balance grow.
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