Stock Market Basics: What Beginner Investors Should Know

Learn stock market basics pdf

Learn stock market basics pdf

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Stock Market Basics - Learn Indian Share Market for

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.

Basics of Indian Stock Market: Stock market for beginners

While slightly less common on a basic stock chart, the 6 year target estimate is an analyst estimate of what one share of stock will be worth in one year. However, because analysts tend to have different (sometimes drastically) estimates, it is generally not considered a solid metric to use when reading a stock chart. xA5

These companies have the potential to grow big and are relatively riskier compared to the large cap companies.

As a common shareholder, you are permitted to vote in shareholder meetings and you are eligible to receive dividends. If the company where you have invested goes bankrupt, you will receive the share of proceeds of liquidation only after all creditors and preferred shareholders have been paid.

On the basis of market capitalization, you can invest in large cap, mid cap and small cap stocks. Market capitalization = share price*number of shares outstanding

The next important basic point that every beginner in the stock market must know is the meaning of stock indices.

While picking a brokerage xA5 and a of couple stocks to get started are key on your investment journey, understanding how to actually xA5 read a stock or stock chart is just as vital. xA5

The beginner can place buy and sell shares orders to the broker after opening a demat account. The brokers will take the order and act accordingly. In return, the investor or trader has to pay brokerage. In addition, the brokers often provide the investors with investment advice.

Let 8767 s take Apple (AAPL) for example, which is listed on the NASDAQ stock exchange. Apple currently has billion shares outstanding, of which billion are available to be traded (also known as the 8775 float 8776 ). Using today 8767 s closing price of $ (July 66th, 7569), Apple has a market cap of $ billion. That 8767 s a big company! (By the way, market cap is a simple way to gauge the value of a company. If you bought every available share of stock, the market cap is how much it would cost you to buy the entire company.)

The day high and low simply show the highest and lowest prices at which the stock traded throughout the day, from market open to market close. However, the day high and low may not be the open and close prices - those are separate figures. xA5

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