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Investing is one way that can make your money grow. However, there are many things that need to be known before investing. The basics are not hard and can be learned by anyone. The earlier you learn it the better. Before investing there are a few factors that you must take into into consideration. You need to know the basics first. Many people make the mistake of jumping into the market without doing any research. After learning, the beginner can start investing without any uncertainty. First of all, there are some terms you should be familiar with when investing. You probably heard of bear markets and bull markets. What do they mean? A bull market is when a particular financial market, as a whole, is doing great. In a bull market, most stocks are going up. In a bear market, most stocks are going down. When you purchase stock in a company, you become part owner of the company and share in its profits. The more shares you buy, the more ownership you have (usually your ownership will be a small fraction of the company). Let's say you have $1,000 to invest. You invest your $1,000 in a company that is selling at $10 per share. Therefore, you can buy 100 shares in the company. If the company's share price is $11 per share the next day, then you have a profit of $1 per share. Your total return is $1,100, a gain of $100. That's a nice 10 percent return in one day. Stock Market Education: Stock Investing, Trading Strategy and More AAII’s stock market education area will help you learn the “ins and outs” of profitable stock market investing and stock strategy. Our stock market investing download library, FAQs and stock trading Glossary are just some of the tools that will guide you through AAII’s unique brand of stock market education.
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