Stocks 101

As you may see, each topic is followed with 101 indicating that this is a beginner's guide. As the first few posts accumulate, I want to make sure the basic information is covered. Every section has a different author, although I will continue to post from time to time. If you have any questions you would like answered, or if you have some tips or advice you would like to share, please email the section's author or just make a comment.


"Knowing Is Half The Battle"

Since childhood, I can remember looking at the news and hearing the reports on Wall Street. I can remember looking at the news paper and never understanding the section for stocks. One of my most positive memories of the stock market, is the stock market club my elementary school had and I was a member of. Even with having a general knowledge of the stock market, I'm no better than the person who thinks the stock market is a grocery store (laugh here). How long will we go around and not know about the stock market; when its talked about on a national level daily. People, I always say if you can beat them then join them.


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The stock market is a place where virtually anyone can make trades in an effort to make money. Some uses the stock market as a retirement vehicle. Some use the market to make extra holiday cash. Some utilize the stock market to make a living. The stock market is a place to both make money and generate money. The corporations that offer the stock benefit from the raised capital. The stock market provides virtually anyone with an opportunity to own a business in which they do not have to report to.

Many people hear the words stock market they generally thing "rich mans game". It's important to understand from the beginning this is not true. A "rich man's game" projects an image that only very wealthy people can invest in the stock market. Thinking this way only indicates on thing...ignorance.

The stock market is a vehicle that generates wealth for investors. Is investing risky? Well, there are no guarantees. There are literally hundreds of investing strategies that can be found all over the place (Internet, library, etc). One of the most important variables to successful investing is understanding where the money is going and what the investing strategy is. Anyone can manage their own money and invest wisely. A financial adviser is not a must, but they can be very helpful evaluating current financial situations, and creating future financial goals (buying a home).