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Wednesday, October 31, 2007

Stock investing basics

stock investing basic is more important for a newbie who is thinking or in an intention to make an investment in stock market.

The first basic thing for a newbie is to know more about what is stock or share?

Stock or share is a portion of ownership of a company allotted to you when you make any investment in that particular company. The portion of ownership depends upon the number of stock you have bought of that company. Making investment in any company means you are participating in the growth of that particular company. Any profit made by the company is divided among the stock investors in the form of dividend or bonus, along with the benefit of increase in price of the stock. As long as company is making consistent profit and shows quarter-on-quarter or year-on-year growth potential the chances of substantial rise in stock price is more and so are the benefit also in the form of dividend and bonus.

Once you are familiar with what the stock is then you need to be familiar with the other aspect of stock investing basics such as fundamental analysis as well as technical analysis of stock for making perfect stock investment which will give you consistent returns.

More information on Fundamental analysis
More information on Technical analysis

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