1) Stocks Basics: Introduction

by · August 25, 2010

Investing is all about making your money work for you.

There are many investment vehicles that will let you earn with minimal work on your part. Yes, you can just sit back and relax, collect the dividend checks without lifting a finger at all. Sounds like a dream? Actually, this has been a reality for some time now.

How? Well, it’s all about owning stocks.

Stocks play a great role in almost all investment portfolios. A stock is, without a doubt, one of best financial instruments to build wealth.  While they are generally riskier than other investment strategies. They also have a higher return. That is why you need to build a strong knowledge of stocks and how they trade on the stock market.

Increasingly, the average investor has been interested in stocks, whereas before it used to be limited primarily to the rich and powerful. More investors have realized that in order to gain more wealth, one has to invest, and stocks have become the instrument of choice. Technology has also been an important factor in paving the way towards opening the stock markets for virtually anybody.

In spite of all of the talk about stocks, a lot of people still don’t understand entirely how it works. There is a lot of misinformation on stocks from people who don’t know what they’re talking about. Stock should not be thought of as an easy get-rich-quick scheme. While it can make you wealthy, it can lead you to financial disaster as well. As mentioned earlier, investing in stocks doesn’t come without risks. However, don’t be afraid. Almost all investments come with varying degrees of risk. The best way to protect yourself is to educate yourself on stocks and the stock market.

With the help of this tutorial, you will learn what a stock is, the different types of stock, how they are traded, how to read stock tables and quotes, and more.

Next Section: What are Stocks?