Wednesday, December 4, 2013

Trades, stocks, dividends, and catalysts 2.0

Stocks are shares of a company that you can invest in. As the company does well, the stock price increases and you make money. The amount depends on the difference between the price you bought the stock for and what it has risen to. It works the same way if the company doesn't do as well except you lose money.

A trade is the buying of a stock for a short amount of time. It's to make money quicker. Trades are often bought before a catalyst occurs and sold after.

Dividends are an amount of money a company can choose to pay their stockholders per share. It can be quarterly, annually, ect.

Catalysts are some sort of event that will dictate how the stocks of a company do. If it's a good catalyst, the stock prices can jump. If it's bad, it can fall. Either way it's a substantial amount.

I think I have a basic understanding of what each one is.

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