| One way of making your money grow is | | | | affect the market value of shares. The price |
| investing in the stock market. Stocks are how | | | | of crude oil will affect the market value. |
| companies grow without securing bank loans. | | | | Disasters or wars will force prices downward. |
| The investor buys the company stock (shares) | | | | The introduction of new federal regulations |
| and receives interest in the form of stock | | | | for an industry will have an impact, |
| dividends. Share holders can affect the | | | | depending on how the legislation affects |
| operation of a company. Each year, there is a | | | | production. Changes in company management |
| share holders meeting and different issues | | | | also have an affect on stock prices. |
| are presented for the share holders to vote | | | | |
| on. The greater the number of shares that an | | | | Stock brokers buy and sell stocks on behalf |
| investor has, the greater the number of votes | | | | of investors. They also provide information |
| the stock holder can exercise. | | | | to their clients regarding the best times to |
| | | | buy and sell based on the market value of the |
| There are several categories of stocks. | | | | stocks and whether they are rising or falling |
| Income stocks provide revenue to the stock | | | | in value. Today anyone can be a stock broker |
| holders in the form of dividends. Growth | | | | thanks to the internet. Investment companies |
| stocks are shares sold by companies that | | | | permit their clients to use their services to |
| reinvest their profits to increase the size | | | | research a stock or give advice on buying and |
| of the company. You can invest in stocks | | | | selling. The investor is then able to |
| online, through stock market investors or | | | | purchase or sell stocks online at a cost of |
| directly, as in the case of Coca Cola and a | | | | so much per "trade." |
| number of other companies. Some companies | | | | |
| provide their employees with stock options | | | | Everyday the stock averages are compiled and |
| allowing them to purchase stocks at a given | | | | made public. The Dow Jones Industrial Average |
| price for a particular period of time. There | | | | provides details on 30 large industrial |
| are also Over the Counter Stocks. These are | | | | stocks, including General Motors, Goodyear, |
| not listed on any exchange and are sold by | | | | IBM and Exxon. The Standard and Poor 500 |
| smaller, riskier companies that do not meet | | | | Index provides averages for 500 large |
| the requirements of the exchanges. | | | | companies. There are three major stock |
| | | | exchanges in the United States. These include |
| There are a number of reasons why stocks rise | | | | NASDAQ (National Association of Securities |
| and fall in value. If a company is doing | | | | Dealers Automated Quotations), Amex (American |
| well, the value of a stock will increase. | | | | Stock Exchange) and the New York Stock |
| Conversely, if a company is not doing well, | | | | Exchange. |
| its stock prices may fall. Other factors | | | | |