How do a Newbie Invest in the Stock Market by Agwu Chukwuemeka O.

The stock market is where the buying and selling of money is consummated through the exchange of financial instrument or asset, especially stocks and shares. Investing through the stock market can be done by two approaches; these are through the primary and the secondary segment of the market.

Investing through the primary segment entail the obtaining of available offer prospectus, analyzing the prospectus or consult your financial adviser whether the investment is worthwhile. You don’t make any investment decision without advice from your financial adviser, a lot of people have been hurt by making the wrong investment in the stock market. Such stocks, has caused cognitive dissonance on their on part thereby depriving themselves of the golden opportunities to create wealth from the stock market.

Fill the application forms. The application forms could be filled online where you will state the quantity you are subscribing for and the amount. Thereafter, you will submit the form for processing. Usually, a share certificate is mailed to the subscriber which is an evident given to the shareholder. The other approach, which is investing through the secondary segment, you can approach a stockbroker and inform him of your desire to buy shares of a particular companies quoted on the stock exchange.

The broker who is a registered member of the stock exchange will give you forms to fill. You will specify the exact share you wish to buy and the desired unit of each. An account be opened in your name by the broker for the records of funds you deposited for the purchase of the share thereby completing the transaction.

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What a Beginner Need To Know About Stock Trading by Agwu Chukwuemeka

Historically, the era of stock market started in 1863 with Wall street in New York city with the establishment of New York Stock Exchange. Over the years, the existence of stock market in nations has become a key indicator of its level of economic development and sophistication.

The stock exchange also known as the capital market is a platform where you can buy and sell shares, bonds, stocks, debentures and other capital market instruments. It could be a trading floor or through an electronic device. A share is what one has in order to become a member of a company. Share could be acquired through public offers also known as primary market, or from the trading floor of the exchange. Buying and selling of share is normally done through a stock broker.

A stock broker is a dealing member of the stock exchange who provides services to anyone who wants to buy and sell a share. If you buy a share of a company, you become a member (a shareholder) of that company. To be a shareholder or a member means that you share in the profit of the company. Companies issue shares which represent the money which the shareholders (as members of the company) put down when the first invested in the company.

Owners of shares (shareholders) are presumed to own the company. If the company makes profit, the shareholders have the right to share of the profit which is declared for distribution. A slice of the profit is called dividend. It is not a fixed amount.

People invest in shares for many reasons. It may be for the dividends, bonus shares or for capital appreciation. Whatever may be the investment objective, most investors have their eyes on how to maximize the returns on their investment.

Agwu Chukwuemeka Odi is an expert in the field of stock trading. Visit http://stocktradinginseconds.blogspot.com for more information on stock trading.

Proven strategies for picking stocks by Agwu Chukwuemeka O.

Investment in stock is worthwhile, but if you don’t have strategies in picking the stock to invest in, you are doomed. Many investors forget that the term investing in itself connotes the planting of seed in expectation of growth or harvest. In recent times, it seems focus has actually shifted from the long term or immediate gains we get on stocks. It is better to look for great companies to invest your money in their stocks rather than looking for great stocks to invest in. Many stocks perform well for some time and then turn around to give investors nightmares if they are not supported by good companies. But if the stock of a good company is not performing well now, you should take it as a temporarily phenomenon because good companies will always present a profitable stock in long run. This is the reason why investors have to be careful with the market during bullish sessions. When you see all prices going up, you may not be able to tell which is backed by strong numbers and which is not until you begin to take a look at the companies on their merits.

You should also look at the macroeconomic factors because it can take a bite out of your portfolio. Do not be surprised in years to come that some small focused and dynamic companies of today will make attempts to take over the great companies that you are presently looking at. There are also some companies that are undervalued which happen to be in the industries that can turn into a spectacular performer. If you intend to take advantage, you should invest in the stock of those companies. Carefully looking and accessing these stocks can enable you determine which of the companies stock to invest in.

Also, one should take time to check the composition of the management of any company he or she wants to invest in their stock. This will enable you know the credibility of the people on top as they can contribute positively or negatively to the fortune of the company.

Agwu Chukwuemeka Odi is an expert in the field of stock trading. Visit http://stocktradinginseconds.blogspot.com for more information on stock trading.