How does stock investing work?
I'm going to be real rudimentary in my line of questioning, just so that I don't give out an impression that I am seeking financial advisement or anything to do with seeking a brokerage, for which I am not. Though what I am interested in, is a corroboration of how I think buying a stock works. .... starting real simple here, remember, I am wanting to just to get a clear understanding on the basic premise of how money is affected in the investing cycle. Okay, let' say a stock costs $15. I purchase say two shares at $30. Then say after a week, the stock rises in price to $17 - what happens if I sell? And conversely, say if the price dipped to $13 - what happens if I don't sell? In other words, is it as simple and straightforward as logic dictates? Can someone be so kind as to explain a simple, layman, rudimentary life cycle of a stock purchase in both a winning and losing situation. Btw, an online investing modality like e-trade would most likely be the preferred method to go about transacting the trades. Thanks everyone !
How does Online Stock Trading Work?
"Does a stock broker pick the stock for me, or do I have full control?" No... a stock broker doesn't pick the stock for you unless you hire one to do so for you. So yes for the most part you have full control. "When I buy or sell a stock, does the transaction happen immediately?" The online stock trading process is almost completely digitalized. Using ECNs, Electronic Communication Networks, online stock trading is almost all done with computers these days. An investor selects a stock and quantity for purchase using an online stock broker. The sale is then communicated via the ECNs looking for a seller’s stock offer to match. Once located the sale is made, the funds applied and deducted from the buyers online account, and the transaction is done. Ownership confirmation of stocks is maintained with the online stock brokerage firm, and the accounts owned by the investors held there. In most cases it's an instant transaction. "If I short sell stock, would that happen immediately as well?" This works the same as mentioned above. Basically it's instant depending on high volume trading. "And do I have to pay any extra fees?" This depends on the online broker you choose. Be sure that you understand the terms and conditions of the brokerage firm that you choose Hope I was of some service to you Congratulations on Your New Endeavor and Good Luck!
How do i start investing in stocks?
I want to start investing in stocks, but i have no idea how to. I heard its good money, but i don't understand where i need to go to start trading stocks, and how old does one have to be to make an account for investing in stocks. Also could you explain to me what a mutual fund is and the basics of investing in stocks? Thank You.