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