(TruthSeekerDaily) Alright, as truth seekers, let’s see if we can sum it up real quick for the people who are on the go:
Company A needs money
Company A makes an Initial Public Offering (stock shares).
Investors buy stock shares and Company A makes a quick buck.
Investors then trade (buy and sell) their shares on the market to those who would like to own a piece of the company.
The increase and decrease of the price depends on those buying and selling shares. What are they willing to pay for a piece of the company and what are they willing to let it go for.
A good solid company that increases their profits year after year and future looks promising usually have stocks which increase in value.
A “bad” company that loses money every year and its future looks depressing will decrease in value and eventually disappear (go bankrupt or dilute its shares). This summery of course doesn’t take into account machine trading or stock manipulation (shorting a stock, or pump and dumping schemes). A good book to read is “Rule #1” By Phil Town. – TruthSeeker.
To sum up: The stock market is about predicting what investors will do in the future. Ps. past performance does not guarantee future results. Remember this. Oh, and watch out for pump and dumpers.. and of course your money supports the type of companies/products/causes which you wish to see in this world.
Q: Do you have any companies that you support?