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Please explain to me in very SIMPLE terms how the Stock Market works?
Why does it rise, why does it fall, what is it, where is it, who works there, why do I care, etc. etc.
17 Answers
- Ocho CincoLv 71 decade agoFavorite Answer
People stand in a room. They whisper into each other's ears rumors ....... some rumors of good news by companies, some rumors are bad rumors about companies, people react and buy or sell according the shares of stock of that company that they represent = )
- Anonymous5 years ago
You don't know. You can have an idea of what to do based on Earnings per Share growth, Price to Earnings, latest news, and about 500 other factors. The stock market is an open market, the stock price is only based on one thing, what the next person is willing to pay for it. You are trying to buy stocks that other people will want to buy at a higher price in the future. If you are serious about learning how to invest then buy a book about DRIP's and buy a book by the Motley Fools about the basics. With DRIPs you can invest small amounts (literally $25) into stocks and follow their progess and learn from that.
- Anonymous6 years ago
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/ed075
- 7 years ago
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- Anonymous1 decade ago
stock market
- you buy a portion (a stock) of a company, product, etc.
why it rises and falls
- due to law of supply and demand: if many buys the stocks it becomes more expensive, etc.
who works there and where is it
- brokers work there; they are located in stock exchange places ex: wall street.
why do i care
- no need to care
- 1 decade ago
The stock market is just buying a small share of a public company such as Google or Yahoo. Depending on how well the stock market does you may make money by your share increasing in money. Or the amount of money your share is worth will decrease, resulting in you losing money.
- Anonymous1 decade ago
It's kinda easy,but complicated...you put money into a stock (which is buying part of ownership into a company) that you think will succeed. That company is supposed to use that money to build itself to make you money,like repaying a loan of sorts.Now about the rise and fall... let's say you buy orange juice stocks. If there is a deep freeze in Florida and the oranges die,your stocks will increase in value,if the crops are abundant,your stocks will fall. Remember,it is sometimes all about supply and demand. If you are interested in investing,you most likely won't get the help you need on Y!A
Hope I helped
- 1 decade ago
Stocks go up and down in value depending on how much people want to buy and sell that stock.
Source(s): Still have never taken a marketing class but if thats not simple, I do not know what is. - 1 decade ago
People buy and sell shares in a company...which is like a small percentage of the profit, or losses
- Dayanara*Lv 41 decade ago
I have never had an idea how it all works either..I am barely trying to figure out what the answer for 2 x 3 is...:(