The Idiot’s Guide to the Stock Market

You can condemn the rich, but the truth is that every one essentially wants to be financially secure.


Marina Faryal January 23, 2014

You can condemn the rich, but the truth is that every one essentially wants to be financially secure. For beginners, a stock market is where companies publicly put out their shares for investors to buy. Basically if you buy a share of a company, you’re buying a little piece of it. The company makes money, you make money.

Let’s go over a few basic terms that make the stock market sound intimidating. Shares: pieces of a company given for ownership. Stocks: shares of a company or corporation. Broker: a person or a firm that buys and sells stocks on your behalf. Bear-market: this is when the stock prices are constantly falling, there are more sellers than buyers, the investors are pessimistic, everyone wants to sell their shares, this happens during a recession or when unemployment is very high, when an economy is suffering. Bull-market: market is going up, investors are optimistic about stocks, the opposite of bear-market. Portfolio: a collection of different stock shares, buying a few different shares from different stocks to lessen or diversify the risk. Dividend: a part of company’s profit given to the people who own shares in their company, they are called shareholders. Volume: a number of shares of stocks traded during a certain period of time.

To buy shares, small individual investors need to be connected to a brokerage firm such as Elixir Securities, KASB Securities, JS Global Capital, SAAOO Capital etc. If you’re clueless, these brokerage firms can help and assist you with the buying and selling of stocks. But young adults and recent graduates we shouldn’t be scared of taking risks; so what if you lose some money, there is also a chance you could make a lot of money!

Everyone has the brain capacity to follow the stock market, if you understood fifth grade math, you can do it. Start small, buy cheap stocks, and if you understand it invest a little more.

However, research and market news is essential. It is crucial to read about the stock market everyday in order to understand what is going on in the market and how the market is affected by government policies and decisions.

Published in The Express Tribune, January 23rd, 2014.

COMMENTS (3)

Danali | 9 years ago | Reply

After reading this, I feel I was an idiot.

alia | 10 years ago | Reply

Finally tribune puts in useful information instead of blabber, good article!

VIEW MORE COMMENTS
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ