Stocks Investment
Stocks investment dates back to the 16th century, when the Dutch East India Company issued IPOs in 1606. Going public and involving outside investors in company ownership allowed this company and many others that followed to pursue economic growth. 
During the 60s and 70s before the advent of computers, stocks investment was done by contacting a broker, handing over your money directly, and waiting. These days, all you have to do is open an online bank account, fund it with your credit card, punch in a few digits on your computer and voila, you have invested in stocks all on your own!
Did you know that ticker tapes were being used for stocks trading since as far back as 1867? Technology in the 21st century now allows you to scan ticker tapes of different companies on the internet, bring up a specific company to see what its stocks trading pattern is, and compare share prices between companies trading on the Nasdaq, NYSE, DJIA, and Amex.
Choosing the stocks to invest in is a personal decision you will have to make yourself. This will depend on the following things:
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How much money you are willing to invest – Can you afford to go big time and trade on the major stock exchanges where your $1,000 dollars will get you just a few shares, or would you rather put that same amount in a company where you have more shares and can earn more? |
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How long you want to keep your money tied to the stock – Are you willing to wait for years to see your stocks investment appreciate, or do you want to day trade, meaning buy a stock today and unload it after you make money, then move on to another promising stock tomorrow or within the week? |
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How much risk you’re willing to take – Are you a conservative investor who prefers to put your money on companies that are considered “safe,” and whose share price increases are predictably slow, or do you like the thrill of discovery and are willing to put your money on growth companies with a bigger chance of earning more? |
There are two kinds of stocks exchanges – the traditional ones where the big companies trade, and the OTC Bulletin Boards. We like to call them “Inside” and “Outside.” Inside means the New York Stock Exchange (NYSE), American Stock Exchange (Amex), and the Nasdaq (National Association of Securities Dealers Automated Quotations), the last of which is an electronic quotation board. These are the three major ones, and you’ve also got state-based or regional stock exchanges such as the Chicago Stock Exchange, Philadelphia Stock Exchange, Boston Stock Exchange, and the Pacific Stock Exchange. Outside of these are the Over The Counter Bulletin Boards and the Pink Sheets, where the penny stocks, micro cap stocks and small cap stocks are traded.
Share prices for stocks investments at the major stock exchanges can range from a low of $100 to as high as $120,700 per share – a place of honor bestowed to Berkley Hathaway, the company owned by Warren Buffet. The companies that trade here are those that have met the SEC’s stringent requirements about disclosure of their financials and company information.
You probably would rather not go into the big cap stocks right now, considering the erratic fluctuation of the Dow Jones index right now. Think penny stocks, then. Although penny stocks investment poses a bigger risk than the stocks on the major exchanges, some companies – Marks & Spencer from the UK, Italian-owned Benetton SPA, Swiss-owned Roche, and Adidas from Germany –are some of the foreign-owned stocks trading on the Pink Sheets.
There are many more stocks investment finds like these, and we’ll tell you all about them in our SmallCapProfits.net Newsletter. We’ll help you find the best unknown but promising stocks so that you |
