PostHeaderIcon Stock Market Basics

It’s every employee’s dream: to actually earn money without having to report for work. It’s important that you understand that while this might be closer to fantasy for you, you might be surprised to know that it actually is possible for someone to live this particular type of lifestyle.

It is possible to have the money roll  in as if you just hit the sweepstakes. This so-called pipe dream that some people call it would be much closer to reality. The secret of this type of financial freedom is the stock market and knowing it like the back of your hand.

This wonderful sector of financial instruments is probably one of the best tools that have ever been invented for the purpose of building wealth. Stocks have long been the tool as well as the foundation of  virtually all great investment portfolios.

People who have been successful financially are known to be well-versed in stocks. They have been able to use this to pave their road to financial freedom. Because of their experience and knowledge of the stock business, people have been able to build up their investment portfolio, rack in the money and up their experience with stocks, thus gaining them an advantage over other individuals who are also playing the trading game.

The last few decades have been a testament to the increased interest of the normal person with the stock market. This figure has grown to titanic proportions. The stereotyped toy of the affluent before has since become the toy of choice of most daring investors to grow their wealth. This demand has become quite common nowadays since this interest has also been coupled with an equivalent rise in trading technology. This has enabled most people to actually have and own their own stocks of just about any corporation.

Stocks are simply a person’s share in the ownership of a company. It signifies a claim on the company’s assets and earnings. The more stock you own, the greater your stake in the company is. When you "own" a stock of a company, you are entitled to the company’s earnings, voting rights and just about every asset that the company has.

The proof that you own a stock is through a stock certificate. Before, it was once a physical piece of document that you had to bring to the brokerage whenever you would like for it to be traded. However, in today’s technology-driven age, these documents are stored electronically and the trading happens via the Internet with a few clicks of one’s mouse.

Theoretically, each stock represents one vote of whether the incumbent management should continue to run the business or not. In reality, it is the billionaire entrepreneurs and the other big players in the industry who are part of the board of directors of the company that call the shots as to whether one member stays or goes. The stocks are more of a means for the company to gain more liquid assets than it is a right to kick out management.

All in all, stocks should be seen as a means to financial freedom only and only if you know how to work them. So get your feet wet and start stepping on some liquid assets of your own.


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