what you need to know before buying shares Investing in stocks is one of many options for investing your money. It’s pretty hard to avoid hearing about the stock market in one way or another. News about the stock market shows up on practically every news report you hear on the radio or on television. However, just because the newspaper and the financial media talk nonstop about stock investing doesn’t mean it’s the only way to invest your money. It’s merely one option.
Investing in stocks comes with substantial risk, especially in the short term. If you listen to the news, you’ll undoubtedly hear about various numbers like the S&P 500 and the Dow Jones Industrial going up and down some amount. Maybe it went up 1% now or down 0.5% last week.
That’s a lot of up and down movement. You can easily gain – or lose – as much in a single moment on your investment as you would gain in an entire year if that money were in something stable and secure like a savings account.
Most people invest in stocks by opening an account with a broker-age, that’s usually done online at the broker-age’s website. How exactly do you buy stocks? Most of the time, people do this by opening an account with a broker-age firm. A broker-age firm is a company that has access to the stock exchange, so they’ll take instructions from you, go to the stock exchange, and actually buy or sell stocks according to your instructions.