The stock market is actually a platform of a commercial nature that individuals and companies use to trade with a commodity that is better known as company stocks and of course, the derivatives of these stocks. They are most often described within the same breath as the bonds market, as well as some other often traded commodities all over the world. Like most markets, the stocks and bonds market can sometimes be of an over the counter nature, which is slightly different from other commodities, which are sold in specific market with their own specific systems of buying and selling.
The most popular place where stocks are traded is of course the NYSE or the New York Stock Exchange, followed by other locations like the Amex and OTCBB. This is in the united states of course, and other countries have their own places where they can trade. The stock market currently stands at a value of slightly more than 20 trillion dollars, which is just half the size of the bonds market. However, the derivatives of the stock market stand at an astounding three hundred trillion dollars, with their most major participants being the US banks. When it comes to trading on the stock market, there are many ways that one can do and most investors base their decision on the price of the stock that they come across.
A good price can sometimes mean that the stock is of good quality and has the potential to rise in value; but that does not mean that that is the only way that stock investing can be done. Always know what you are investing in and knowing the nature of the company or corporation attached to the stock will allow you to have much better insight into the nature of the stock and its intended movement in the market. One of the things that many investors press upon is the option to never choose a load bearing mutual fund - which means that you have to fork out some money for a sales fee that is up front.
This is an unnecessary manoeuvre because in the case of the stock market, there are plenty of mutual funds that will allow you to enter without paying up front with 'no load' involved. The best way to know how your stocks are going to do is looking at the growth curve of the corporation in question, and this is important because most companies and independent analysts would provide independent growth analysis over a 5 to ten period. This technical analysis of the company is very important when it comes to deciding how the company is going to look in the next few years and what value your stock will hold. In the case of any investment, how much you put in is usually co related to how much you are going to make, but always ensure that your capital is risk free - meaning this is the amount of money that you can afford to lose without hindering your life style.
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