STOCK MARKET--KNOWLEDGE FINANCIAL
GROUP
STOCK MARKET
The market in which shares are issued and traded either through exchanges or over-the-counter
markets. Also known as the equity market, it is one of the most vital areas of a market economy as
it provides companies with access to capital and investors with a slice of ownership in the
company and the potential of gains based on the company's future performance.
This market can be split into two main sections: the primary and secondary market. The primary
market is where new issues are first offered, with any subsequent trading going on in the secondary
market.
THE STOCK MARKET
A place where investors can buy and sell stocks of all kind: Mutual
Funds, Bonds, Bond-Funds,municipal bonds, government bonds,
corporate bonds, annuities
MARKET POINT OF VIEW
Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out
on a trading floor. You've probably seen pictures of a trading floor, in which traders are wildly throwing their arms up, waving, yelling, and signaling to each other. The other type of
exchange is virtual, composed of a network of computers where trades are made electronically.
The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing. Just imagine how difficult it would be to sell shares if
you had to call around the neighborhood trying to find a buyer. Really, a stock market is nothing more than a super-sophisticated farmers' market linking buyers and sellers.
Before we go on, we should distinguish between the primary market and the secondary market. The primary market is where securities are created (by means of an IPO) while, in the
secondary market, investors trade previously-issued securities without the involvement of the issuing-companies. The secondary market is what people are referring to when they talk
about the stock market. It is important to understand that the trading of a company's stock does not directly involve that company.
The New York Stock Exchange
The most prestigious exchange in the world is the New York Stock Exchange (NYSE). The "Big Board" was founded over 200 years ago in 1792 with the signing of the Buttonwood
Agreement by 24 New York City stockbrokers and merchants. Currently the NYSE, with stocks like General Electric, McDonald's, Citigroup, Coca-Cola, Gillette and Wal-mart, is the
market of choice for the largest companies in America.
The NYSE is the first type of exchange (as we referred to above), where much of the trading is
done face-to-face on a trading floor. This is also referred to as a listed exchange. Orders come in
through brokerage firms that are members of the exchange and flow down to floor brokers who go
to a specific spot on the floor where the stock trades. At this location, known as the trading post,
there is a specific person known as the specialist whose job is to match buyers and sellers. Prices
are determined using an auction method: the current price is the highest amount any buyer is
willing to pay and the lowest price at which someone is willing to sell. Once a trade has been
made, the details are sent back to the brokerage firm, who then notifies the investor who placed
the order. Although there is human contact in this process, don't think that the NYSE is still in the
stone age: computers play a huge role in the process
The Nasdaq
The second type of exchange is the virtual sort called an over-the-counter (OTC)
market, of which the Nasdaq is the most popular. These markets have no central
location or floor brokers whatsoever. Trading is done through a computer and
telecommunications network of dealers. It used to be that the largest companies
were listed only on the NYSE while all other second tier stocks traded on the other
exchanges. The tech boom of the late '90s changed all this; now the Nasdaq is
home to several big technology companies such as Microsoft, Cisco, Intel, Dell
and Oracle. This has resulted in the Nasdaq becoming a serious competitor to the
NYSE.
The Nasdaq market site in Times Square
Other Exchanges
The third largest exchange in the U.S. is the American Stock Exchange (AMEX). The AMEX used
to be an alternative to the NYSE, but that role has since been filled by the Nasdaq. In fact, the
National Association of Securities Dealers (NASD), which is the parent of Nasdaq, bought the
AMEX in 1998. Almost all trading now on the AMEX is in small-cap stocks and derivatives.
Also remember the S&P-500 (THE STANDARD AND POOR)
-----------------------------------------------------------------------------------------------------------------
OTHER MARKETS
There are many stock exchanges located in just about every country around the world. American
markets are undoubtedly the largest, but they still represent only a fraction of total investment
around the globe. The two other main financial hubs are London, home of the London Stock
Exchange, and Hong Kong, home of the Hong Kong Stock Exchange. The Japanese market, The
German market, The Australian market, The last place worth mentioning is the over-the-counter
bulletin board (OTCBB). The Nasdaq is an over-the-counter market, but the term commonly refers
to small public companies that don’t meet the listing requirements of any of the regulated
markets, including the Nasdaq. The OTCBB is home to penny stocks because there is little to no
regulation. This makes investing in an OTCBB stock very risky
BUYING STOCKS
You've now learned what a stock is and a little bit about the principles behind the stock market, but how do you actually go about buying stocks? Thankfully, you don't have to go down
into the trading pit yelling and screaming your order. There are two main ways to purchase stock:
1. Using a Brokerage
The most common method to buy stocks is to use a brokerage. Brokerages come in two different flavors. Full-service brokerages offer you (supposedly) expert advice and can manage
your account; they also charge a lot. Discount brokerages offer little in the way of personal attention but are much cheaper.
At one time, only the wealthy could afford a broker since only the expensive, full-service brokers were available. With the internet came the explosion of online discount brokers. Thanks
to them nearly anybody can now afford to invest in the market.
2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct investment plans (DIPs) are plans by which individual companies, for a minimal cost, allow shareholders to purchase stock directly from
the company. Drips are a great way to invest small amounts of money at regular intervals.
Next: Stocks Basics: How to Read A Stock Table/Quote
THE BULLS, THE BEARS, AND THE FARM MARKE TO Wall
Street, the bulls and bears are in a constant struggle. If you haven't heard of these
terms already, you undoubtedly will as you begin to invest.
The Bulls
A bull market is when everything in the economy is great, people are finding jobs,
gross domestic product (GDP) is growing, and stocks are rising. Things are just plain
rosy! Picking stocks during a bull market is easier because everything is going up. Bull
markets cannot last forever though, and sometimes they can lead to dangerous
situations if stocks become overvalued. If a person is optimistic and believes that
stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook".
The Bears
A bear market is when the economy is bad, recession is looming and stock prices are
falling. Bear markets make it tough for investors to pick profitable stocks. One solution
to this is to make money when stocks are falling using a technique called short
selling. Another strategy is to wait on the sidelines until you feel that the bear market
is nearing its end, only starting to buy in anticipation of a bull market. If a person is
pessimistic, believing that stocks are going to drop, he or she is called a "bear" and
said to have a "bearish outlook".
The Other Animals on the Farm - Chickens and Pigs
Chickens are afraid to lose anything. Their fear overrides their need to make profits
and so they turn only to money-market securities or get out of the markets entirely.
While it's true that you should never invest in something over which you lose sleep,
you are also guaranteed never to see any return if you avoid the market completely
and never take any risk,
SUPPLY AND DEMAND
Stock prices change every day as a result of market forces. By this we mean that share prices
change because of supply and demand. If more people want to buy a stock (demand) than sell it
(supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it,
there would be greater supply than demand, and the price would fall.
Understanding supply and demand is easy. What is difficult to comprehend is what makes people
like a particular stock and dislike another stock. This comes down to figuring out what news is
positive for a company and what news is negative. There are many answers to this problem and
just about any investor you ask has their own ideas and strategies
STOCK MARKET A WAY TO INVEST AND MULTIPLY YOUR MONEY. THESE INDUSTRIES HAVE THOUSANDS OF COMPANIES TO BUY STOCKS FROM:
PETROLEUM, AUTOMOBILE, CONSTRUCTION, REAL ESTATE, PHARMACEUTICAL, ENERGY, ELECTRONIC, RETAIL, BANKING AND FINANCING,
COMMUNICATION, TRANSPORTATION, RESOURCE MINERALS ETC.

GENERAL INVESTMENT STRATEGIES, METHODS, AND TECHNIQUES. A BETTER WAY TO BUILD WEALTH! When it comes to reliable investments, real estate investing is the best wealth-
builder in the world.
INVESTING / METHOD AND TECHNIQUES TO INVEST IN TODAY'S MARKET FOR A BETTER TOMORROW
STOCK MARKET: A WAY TO INVEST AND MULTIPLY YOUR MONEY. THE MARKET HAS THOUSANDS OF COMPANIES TO BUY STOCKS, Mutual Funds, Bond Funds, Annuity. The market in
which shares are issued and traded either through exchanges or over-the-counter markets.
REITs= REAL ESTATE INVESTMENT TRUST: A GREAT WAY TO INVEST IN REAL ESTATE WITHOUT TAKING A MORTGAGE LOAN
FOREX MARKET: THE LARGEST MARKET IN THE WORLD TO INVEST AND GET RICHER IF YOU USE THE RIGHT TOOLS
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE. HOW TO SAVE MONEY ON YOUR INSURANCE PREMIUM? LEARN ABOUT THE 5 INSURANCE POLICIES
EVERYBODY NEEDS AND THE 15 INSURANCE POLICIES YOU DON'T NEED.
REAL ESTATE INVESTMENT SECRETS REVEALED, REAL ESTATE CAN HELP YOU GET RICHER THE QUICKEST, EASIEST
WAY POSSIBLE. HOW TO GET PRE-QUALIFY FOR A HOME LOAN? HOW DOES OWNER FINANCING REALLY WORKS
SMALL BUSINESS, METHODS, TECHNIQUES, AND STRATEGIES. Business structures 101. LLP, LLC, S-corp and C-corp: It's not just alphabet soup! A breakdown of what you need to know, in
layman's terms.
Mortgage Loans Modification: SAVE YOUR HOME, SAVE YOUR CREDIT, REDUCE YOUR MONTHLY PAYMENT, AVOID FORECLOSURE
HOME REFINANCE: 10 GREAT REASONS TO REFINANCE A PROPERTY. RATES ARE STILL NEAR HISTORIC LOWS, IT MAY BE A GOOD TIME NOW TO REFINANCE! SOUTH FLORIDA CALL:
786-709-6577 -- WE'RE LICENSED MORTGAGE BROKER
AMERICAN BANKING SYSTEM: BANKING HISTORY; GREAT THINGS TO KNOW ABOUT THE AMERICAN BANKING HISTORY
BANKING AND FINANCE, COMMERCIAL BANKING: The fundamental functions of a commercial bank during the past two centuries
SAVING: THE SECRETS OF SAVING; WAYS TO SAVE A LOT OF MONEY AND GETTING RICHER. 66 WAYS TO SAVE MONEY
MONEY MANAGEMENT: Ten Resolutions to Make Your Financial Life Easier. 10 Ways to Avoid Overdraft and Bounced Check Fees
THE 16 DAYS THAT SHOOCK THE US ECONOMY IN SEPTEMBER, 2008. A shocking series of events that forever changed the financial markets.
AMERICA’S MONEY CRISIS / Bailout 101: What new law says. Here's a rundown of key provisions of the financial rescue plan that United State Senate voted, Wednesday October 1; and the
house voted Friday October 3, 2008.
FORTUNE, CREATION AND INTRODUCTION: When you invest in stock, you buy ownership shares in a company. Before You Invest; Before undertaking any investment program, it is critical
that you assess your current situation and form goals. Evaluating a Stock, Creating an Emergency Fund
Trust Account: Definition of a Trust; Land Trust, Living Trust, Revocable Trust. In general, a "trust" is a legal entity that is able to own property and other assets.
CLICK HERE TO SEE --- the best products FOR LESS PRICE, from the world most prestigious companies.
Real Estate Investment, Home-Buying Guide, Home-Selling Guide, Mortgage Loan Modification to Avoid Foreclosure, Home Refinancing Since
Interest Rate has Dropped to the bottom low, Real Estate Financing No Matter what you from the news you still can purchase, Begin buying
process with Mortgage Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH FLORIDA ; LET A PROFESSIONAL LICENSED
REALTOR & LICENSED MORTGAGE BROKER ASSIST YOU. SOUTH FL. CONTACT Mr. ANTONY AT: 786-
709-6577
Real Estate For Sale, Commercial Real Estate, Miami Real Estate, Mobile Home, Florida Real Estate
BUY ALL YOU WANT RIGHT HERE; THE BEST QUALITY PRODUCTS FROM THE WORLD GREATEST COMPANIES AT
DISCOUNT PRICE. BARGAIN, BARGAIN!