Learn About The Stock Market

On 2008/11/22, in Stock Info, by DSO


We have put together a list of resources to help people learn about the stock market. A few articles have already been written on the following topics that may be helpful to you.

If you want to learn how to trade penny stocks read – Investing in penny stocks.

To learn how to buy and sell stocks check out how to buy stocks.

If you strictly want to learn how to trade stocks online read Online stock trading.

The best investment newspaper or online resource is Investor’s Business Daily.

And finally if you are looking for stock market books check out our top investment books.

Let’s Learn About The Stock Market


The stock market is made up of multiple trading exchanges such as the NYSE, the NASDAQ and the AMEX. Companies list their stock for trade with one of these exchanges. The price of a company’s stock is not determined by the company but simply by what the free market decides it should be through supply and demand. When you see the price of a stock that price is just a record the last listed trade.

Its important to note that every company has a different number of shares outstanding called the float. The float is the number of shares that are publicly traded for a company. Many beginners think that because a company’s stock is trading at $100 or more the stock cannot go up and is over priced. To help you understand, consider this example:
Company A has 1000 shares outstanding and has a stock price of $20.
Company B has 50 shares outstanding and has a stock price of $100.

Company A is worth $200,000 (1000 shares x $20 stock price) while company B is only worth $50,000. So having a high stock price doesn’t mean a thing. Its all relative to how many shares the company has outstanding.

One of the best places to go to learn about the stock market is CNBC. CNBC TV covers the stock market all day and has excellent shows to help people learn. One of their most popular shows is Mad Money with Jim Cramer. You may also Jim Cramer’s stock picks helpful.



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