WHAT IS THE STOCK MARKET: THE BEST EXPLANATION OF STOCK MARKET

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As I was going through online I came across this question which says what is the stock market all about which I will love to explain. Now let us deal with all those questions

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WHAT IS A STOCK?

A stock is a security that represents the equity, possession, proprietorship, or ownership of a fraction or portion of a company.

WHAT IS THE STOCK MARKET

Let me give an example of how stock works

If a company has 500,000 shares and you purchase 50,000 worth of those very shares that means you own 10% of it which allows you to earn from the company’s growth.

WHAT IS THE STOCK MARKET?

Here we have two different words all together stock and market, we already know what stock is which we explained above, now the market is a place where you do your transaction (buy and sell).

A STOCK MARKET is a place where stocks or shares of a company are listed for public trade.

TYPES OF STOCKS AND HOW TO MAKE MONEY ON STOCK

There are basically three types of stocks or shares

  1. Stock Growth
  2. Dividends
  3. New Issues (IPO)

Stock Growth: In these types of stock you buy or purchase a stock at a lower price to sell at a higher rate.

E.g. assuming you bought an amazon share at the rate of $3,000 per one and bought 10 worth of that share within a couple of weeks or months, the share rose to $3,500 and decided to buy because you noticed that you are on profit. Let’s do the math:

Bought 10 shares at the rate of $3,000 per share

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10 shares * $3,000

= $30,000

Now share increase to $3,500

Sold 10 shares at the rate of $3,500 per share

10 shares * $3,500

=$35,000

To determine profit or loss subtract the selling amount from the purchasing amount

I.e.

Sold 10 shares at $35, 000 – bought 10 shares at $30,000 which is:

($35,000 – $30,000)

 = +$5,000 profit.

DIVIDENDS: a dividend is a reward from a company to its shareholders. Dividends are paid to shareholders when a company makes surplus profits or massive growth.

NEW ISSUES (IPO): IPO is an acronym for the initial public offering, which means selling a company’s shares before it’s been listed on the public exchange for trade. On IPO you only buy shares from the company waiting for it to be listed on the public exchange for trade. IPO shares are bought at a very low rate from the company to sell at a very high rate on the pubic exchange through a stockbroker.

WHO IS A STOCKBROKER

A broker stock is a middle man who gives us access to trade the market or a stockbroker is a professional trader who buys and sells stocks on behalf of a shareholder. A share is meant to be bought and sold when listed on the public exchange through a broker.

Like I said earlier stock is meant to be bought, sold through a broker. Most stockbrokers are now operating online which we are going to list most of them here.

WHERE TO BUY, AND SELL STOCKS

  1. Interactive Broker
  2. Etoro
  3. Tradestation
  4. First Trade
  5. E-Trade
  6. TD America
  7. Fidelity
  8. First Trade
  9. CHARLES SCHWAB
  10. ROBINHOOD
  11. MERRILL EDGE
  12. Chaka: Digital Sub-Broker To Citi Investment Broker(Africa)
  13. Bamboo (Nigeria)
  14. Wealthng: Sankore Securities Limited(Nigeria)
  15. Passfolio: (Nigeria)
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WHAT IS THE STOCK MARKET

STOCK TO INVEST IN FOR BEGINNERS

Here are a few analyzed stocks to invest in for maximum profits

  1. Amazon (AMZ)
  2. Apple (AAPL)
  3. Microsoft (MSFT)
  4. Facebook (FB)
  5. Nike (NKE)
  6. Netflix (NFLX)
  7. Spotify (SHOP)
  8. Tesla (TSLA)
  9. MasterCard (MA)
  10. Alphabet (GOOG)
  11. Payoneer (PAYO)
  12. Ford motors (F)
  13. Coca-cola (KO)
  14. Twitter (TWTR)
  15. HP Inc. (HP)
  16. Booking holdings Inc. (BKNG)
  17. General motors co. (GM)
  18. Crowdstrike holdings, Inc (CRWD)
  19. Zoom (ZM)

NIGERIA STOCKS

  1. Eterna plc (ETERNA)
  2. Honey well flour mill plc (HONYFLOUR)
  3. Mtn nigeria communications plc (MTNN)
  4. Nigerian brewery
  5. Wema bank plc (WEMABANK)
  6. Sterking bank plc (STERLNBANK)
  7. Stanbic IBTC holdings plc (STANBIC)
  8. Custodian and allied plc (CUSTODIAN)
  9. Nestle Nigeria plc (NESTLE)
  10. Airtel Africa plc (AIRTELAFRI)
  11. Flour mills  Nigeria plc (FLOURMILL)

WHAT IS THE STOCK MARKET

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