Master the Markets Starting NOW
There’s a lot of noise in the world today. Everyone — from the mainstream media to the big brokers on Wall Street — wants to tell you what to do with your finances.
In my issues of Wealth Watch (brought to you by my friends at Seven Figure Publishing), I aim to deliver you independence from strongholds in the market… on your terms.
Finding you financial freedom is my No. 1 priority.
By giving you the tools you need to feel financially secure — I can help you gain the knowledge you need to survive any market.
But not everyone knows where to start — which is why I created this guide for you.
How to Choose the Right Broker
Making money with stocks is about more than just buying and selling at the best prices.
There’s another side to investing that most people overlook… Choosing your broker.
Don’t simply choose the one with the lowest price. You may discover it is worth paying a little more. When choosing your broker here are a few questions you may want to ask before making your decision:
- Do they have 24/7 customer service?
- Are the broker’s trading accounts insured by the Securities Investor Protection Corp. (SIPC)?
- How is the frequency of your trading habits going to affect your account and your costs?
- How much will it cost to place an order with a live broker?
- How long will it take for your order to be executed?
- Can you earn interest on cash that is not invested?
- How much independent research will you have access to?
- How easy is it to trade OTC or penny stocks?
Choose the broker that answers these questions to your satisfaction best.
A stock is a type of security that represents ownership of a company.
Ownership is determined by the number of shares a person, or shareholder, has compared with the number of shares available. Owning a company’s stock gives the holder a claim to a part of the company’s assets and earnings.
For example, let’s say a “company” is divided up into 10 shares. You decide to purchase one. This would represent a 10% ownership in the company.
Types of Stock
There are two main types of stock: common and preferred.
Common stock gives the shareholder the right to vote in shareholder meetings and collect dividends.
Preferred stockholders do not have the right to vote but do have a higher claim to assets and earnings. They get dividends first and have higher priority if the company goes bankrupt — they get paid first.
While preferred shares have an added layer of security, common stocks historically outperform them.
How Do Stocks Trade?
Most stocks are traded on exchanges. Exchanges can be a physical place with a trading floor or virtual.
The purpose of an exchange is to enable the transactions between buyers and sellers while reducing risk.
You are probably familiar with some of the big-name exchanges like the Nasdaq and NYSE.
The NYSE — or “Big Board” — was created in 1792 by the signing of the Buttonwood Agreement in New York City by stockbrokers and merchants. It has stocks like Bank of America, Ford and Coca-Cola.
The Nasdaq is an over-the-counter or virtual exchange that holds a lot of technology companies. This includes companies like Apple, Comcast and Intel.
What Makes Stock Price Change?
The simplest answer: Supply and demand.
If there is a large supply and not a lot of buyers, the stock’s price is pushed lower. If there are a lot of buyers but not a lot of stock to sell, the price goes up.
The main theory behind the price movement of a stock is that it indicates how much people feel a company is worth. But a company’s value and stock price are not one in the same.
No one knows for sure why stocks go up and stocks go down. Different investors have different metrics they look at.
Is There a Stock Store?
Many everyday investors use a brokerage to facilitate the buying and selling of stock.
There are full-service brokers where you can talk with someone about your trades. You can also use a discount broker where you can go to a website and place the trades yourself.
That said, some companies allow you to purchase stock directly from them through dividend reinvestment plans (DRIPs) or direct investment plans (DIPs).
Which are a great way to compound your wealth through stocks.
Getting Started on Your Path to Complete Independence
My goal at here at Wealth Watch and Seven Figure Publishing is to deliver you financial independence… on your terms.
With our team of top-notch editors, we deliver life-changing opportunities straight to your inbox every day. Whether you are just starting out — or a seasoned pro — we have something for you.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
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