Stock Market for Beginners 2021 | Stock Market Investing 101 2021

#StockMarketforBeginners #BeyondTheStockPrice #StockMarket101

Stock Market for Beginners 2019 | Stock Market Investing 101 2021

Get My Beginner Investing Book:
https://www.amazon.com/Stock-Market-Investing-101-Introduction-ebook/dp/B07TQG7DQ1/ref=sr_1_1?keywords=Devrhoid+Davis&qid=1572934858&sr=8-1

Stock Market for Beginners 2021 – Beyond The Stock Price
3 Key Things to Beginners Need to Know Before Investing in Stocks

NUMBER 1 - The first thing to remember in buying stocks is that the stock represents an ownership interest in a business and when you buy a stock you are buying into a business.

NUMBER 2 - Stocks are typically for the long run.

NUMBER 3: There are two ways we can earn money in the stock market AND two ways to lose money.

Peter Lynch said, “There's a company behind every stock” He also said, “Stocks are not lottery tickets”

NUMBER 1 - The first thing to remember in buying stocks is that the stock represents an ownership interest in a business and when you buy a stock you are buying into a business.
I cannot overstate this. If you buy stock in a business you are a part owner in the business. If you buy a stock you are buying into a business.

Here are three things we want to find out about any company before we buy the stock.
1. We want to know what business the company is in and have an understanding of that business.
2. We want to know that the company has a team leading it that can execute the company's plans in a profitable way. AND LASTLY, We want to know whether the company is profitable and how the management plans to increase profitability.

NUMBER 2 - Stocks are typically for the long run.
Taken over a 15 to 20 year period, stocks have done better than any other type of asset in terms of growing wealth.

It has done better than real estate and commodities such as gold and silver. It has outperformed bonds and other forms of government paper and it has certainly done better than cash.

NUMBER 3 - There are two ways we can earn money in the stock market AND two ways to lose money.

It would be simply unfair if I did not tell you that it is possible to lose money in the stock market. The first way is by selling stocks at a lower price than you originally bought them.

The second way we can lose our money in the stock market is if we in a company and the company goes bankrupt.

For instance, if I invest in a company in its early stage and then they are not able to make a profit, they will eventually run out of money. When that happens the company files bankruptcy and is liquidated.
If the company has any debts, they will have to be paid first, then the preference shareholders.

Even well established companies can be forced out of business by competition. There are many examples of companies, even very BIG companies that have gone out of business causing shareholders to lose money. Examples include, Leman Brothers, AIG, ENRON, Toys 'R' Us and Ciboney.

When you buy stocks in a company, you are entitled to a a share of the company's earnings. Remember, we are part owners. Management might decide to pay out some of the company's earnings to it's owners. In this case, it is called a dividend. The company will then send a check to the shareholders for the amount declared for each share that they have. The amount you get is in proportion to the amount of stock you own.

The second way is through what is known as capital appreciation! As a company grows, the price of the stock tens to go up as well? This is what we mean by capital appreciation. If you buy a stock for ten dollars per share ($10.00) and it goes up to twelve dollars ($12.00) over the next two years, then you have made 20% in capital gains.

If you liked this video, please click the thumbs up and if you have any thoughts, comments or questions, leave them in the comments below and I'll be sure to get back to you.

Please share this video with someone you think would benefit from this information and consider subscribing to the channel for more stock market related videos.

SUGGESTED READING : Ordinary vs Preference Shares
https://www.caribbeanvalueinvestor.com/news/value-investing-education/ordinary-vs-preferene-shares/
Social Media Links
Instagram :
@beyondthestockprice
@cvijamaica
Twitter :
@beyondthestockprice
@cvijamaica
Facebook:
Beyond The Stock Price
Caribbean Value Investor

Website:
www.caribbeanvalueinvestor.com/news/

- - - - - - - - - - - - - - -
Other Tags

YouTube Investing, Stock Market Investing for Beginners, Financial Literacy, Stock Market Investing for Beginners, Stock Market Investing - How to Get Started, How to start Investing the Stock Market, Best Investment for 2019, Best and Worse Stocks 2018, Beyond The Stock Price, Caribbean Value Investor, Introduction to Stock Market Investing, Emerging Markets, Caribbean Stocks, Bloomberg, NASDAQ, New York Stock Exchange, NYSE, Stock Market Investing, Peter Lynch,

Видео Stock Market for Beginners 2021 | Stock Market Investing 101 2021 канала Beyond The Stock Price