An idiots guide to investing on the stockmarket.
Okay first of all what are shares? They are basically (very basically), what a company does to gain some cash to expand. What they do is essentially sell you a share of the business which means you are eligible to recieve a share of the profits (called dividends). Obviously a company going in loss means your share price goes down, as no-one wants a stock thats not paying dividends and going down in price due to its failure.
So what next. Well theres two things to consider in investing, one, what shares to buy and two, what strategy to employ in deciding what shares to buy.
Find out how by reading my next blog in the series:
http://economicsguide.blogspot.co.uk/2007/06/idiots-guide-to-investing-on.html
Okay first of all what are shares? They are basically (very basically), what a company does to gain some cash to expand. What they do is essentially sell you a share of the business which means you are eligible to recieve a share of the profits (called dividends). Obviously a company going in loss means your share price goes down, as no-one wants a stock thats not paying dividends and going down in price due to its failure.
So what next. Well theres two things to consider in investing, one, what shares to buy and two, what strategy to employ in deciding what shares to buy.
Find out how by reading my next blog in the series:
http://economicsguide.blogspot.co.uk/2007/06/idiots-guide-to-investing-on.html
