Learning the art of investing in stocks comes from learning the very basics about the stock market for dummies. So what is really stock investing, and why do may people find this interesting?
Stock investing, obviously, is investing in stocks. This would involve trading of stocks, which is the buying and selling of stocks in the financial market. When one buys shares of stocks, he will become a shareholder of the company that owns the stocks. He will gain profits of the company as dividends. If he sells his shares later on at a higher price, then he will gain bigger profits.
The risk here is if the company fails, and so the stock prices will also drop. This would mean a loss if the investor would need to sell his shares even at a lower price. Thus, one must also e patient enough to know how to wait for the business to recover so to avoid incurring losses. But the investors must also understand that some businesses do not recover ? this is the bigger risk with the stock market for dummies to understand.
Source: http://www.texansfortierone.com/business-finance/investing/the-art-of-stock-investing
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