Making Your Money Grow In The Stock Market

Making Your Money Grow In the​ Stock Market
One way of​ making your money grow is​ investing in​ the​ stock market .​
Stocks are how companies grow without securing bank loans .​
The investor buys the​ company stock (shares) and receives interest in​ the​ form of​ stock dividends .​
Share holders can affect the​ operation of​ a​ company .​
Each year,​ there is​ a​ share holders meeting and different issues are presented for the​ share holders to​ vote on​ .​
The greater the​ number of​ shares that an​ investor has,​ the​ greater the​ number of​ votes the​ stock holder can exercise.
There are several categories of​ stocks .​
Income stocks provide revenue to​ the​ stock holders in​ the​ form of​ dividends .​
Growth stocks are shares sold by companies that reinvest their profits to​ increase the​ size of​ the​ company .​
You can invest in​ stocks online,​ through stock market investors or​ directly,​ as​ in​ the​ case of​ Coca Cola and a​ number of​ other companies .​
Some companies provide their employees with stock options allowing them to​ purchase stocks at​ a​ given price for a​ particular period of​ time .​
There are also Over the​ Counter Stocks .​
These are not listed on​ any exchange and are sold by smaller,​ riskier companies that do not meet the​ requirements of​ the​ exchanges.
There are a​ number of​ reasons why stocks rise and fall in​ value .​
If a​ company is​ doing well,​ the​ value of​ a​ stock will increase .​
Conversely,​ if​ a​ company is​ not doing well,​ its stock prices may fall .​
Other factors affect the​ market value of​ shares .​
The price of​ crude oil will affect the​ market value .​
Disasters or​ wars will force prices downward .​
The introduction of​ new federal regulations for an​ industry will have an​ impact,​ depending on​ how the​ legislation affects production .​
Changes in​ company management also have an​ affect on​ stock prices.
Stock brokers buy and sell stocks on​ behalf of​ investors .​
They also provide information to​ their clients regarding the​ best times to​ buy and sell based on​ the​ market value of​ the​ stocks and whether they are rising or​ falling in​ value .​
Today anyone can be a​ stock broker thanks to​ the​ internet .​
Investment companies permit their clients to​ use their services to​ research a​ stock or​ give advice on​ buying and selling .​
The investor is​ then able to​ purchase or​ sell stocks online at​ a​ cost of​ so much per trade.
Everyday the​ stock averages are compiled and made public .​
The Dow Jones Industrial Average provides details on​ 30 large industrial stocks,​ including General Motors,​ Goodyear,​ IBM and Exxon .​
The Standard and Poor 500 Index provides averages for 500 large companies .​
There are three major stock exchanges in​ the​ United States .​
These include NASDAQ (National Association of​ Securities Dealers Automated Quotations),​ Amex (American Stock Exchange) and the​ New York Stock Exchange.
The Securities and Exchange Commission (SEC) protect investors; maintains fair,​ orderly,​ and efficient markets; and facilitates capital formation .​
It mandates that companies provide financial information to​ individuals before they buy stock and to​ continue providing relevant financial information as​ long as​ the​ investor holds the​ stock .​
The SEC also oversees securities exchanges,​ securities brokers and dealers,​ investment advisors and mutual funds .​
The SEC has an​ obligation to​ enforce the​ nation’s securities laws .​
Each year hundreds of​ actions are taken against individuals and companies for insider trading,​ accounting fraud,​ and providing false or​ misleading information about securities and the​ companies that issue them.
The SEC works closely with Congress,​ other federal departments and agencies,​ the​ stock exchanges,​ state securities regulators,​ and various private sector organizations.

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