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Investing stock (saham) Market ABC's |
by Bursa Saham Advisor:
Jay Moncliff |
While most folks today trust mutual funds and their professional managers with their investments, it's still important to understand the basics of the stock (saham) market. Although investing in individual stock (saham)s may not be right for everyone, a basic understanding of the stock (saham) market is essential to understanding the workings of our economy and business sector.
A stock (saham) is a portion of ownership in a company. Commonly referred to as a share (saham), it is a small percentage of the total ownership pool for the corporation. share (saham)holders are stock (saham) owners, or people who have an ownership interest in the corporation. Today, share (saham)s are usually tracked electronically, but in previous decades share (saham)holders would actually receive a certificate stating their ownership.
Why own stock (saham)s? First, you are sharing in the company's profits. When a corporation shows a profit, they will sometimes distribute these profits to each share (saham)holder, based on how much stock (saham) they own. This distribution is called a dividend. Company's can elect to pay out their profits or reinvest them in the company, but as a share (saham)holder, each time a payout is made you will receive your proportionate share (saham).
Also, the value of your stock (saham) will rise and fall based on the company's perceived value in the stock (saham) market. If you buy a share (saham) at $10.00 and it rises to $11.00 a share (saham), you've made a dollar for each share (saham) you own, and subsequently sell. However, with this opportunity comes risk as well. If the share (saham) price falls and you sell, you'll lose money. The more volatile the stock (saham), the more opportunity for risk or profit.
Most share (saham)holders track their stock (saham)s using the stock (saham) table. These appear confusing and difficult to read, but they are actually easy to understand with a little practice.
Ticker symbol is listed first. This is the abbreviated symbol that the stock (saham) market uses to identify your company. For example, GE is General Electric, WMT is Walmart. Once you select a company, you'll need to know it's shorthand name to track its progress.
Second, the company's name may be listed. Some tables omit the name to save space, others list it to make tracking stock (saham)s easier.
The third item is the number of sales in the last trading day. This is listed in the 100,000's, so 256 means 256,000 share (saham)s were bought and sold on the last day that the market was open.
Next are the high and low price, in that order. The high price is the highest per share (saham) price that the stock (saham) sold for on the previous trading day. The low price is the lowest price for that day. Since the price of the share (saham)s moves all day long, this is a good reference to see how much the stock (saham) is changing in a day.
Next, the closing price is listed. This is the last price that the stock (saham) traded for as the market closed. This will also be the beginning price for the next trading day.
After the closing price, the table will list the change, or the amount that the stock (saham) changed when you compare yesterday's closing price with the closing price for the day before. This will be listed as a positive number (the stock (saham) went up) or a negative number (the stock (saham) sold for less yesterday than the day before).
stock (saham) tables are found in many places, but most people check their daily paper or the Wall Street Journal. There are many internet sites that track stock (saham)s as well.
Of course, you'll have to select a stock (saham). Choose carefully or consult a professional, and good luck!
About the author of Bursa Saham:
Jay Moncliff is the founder of http://www.investingreviews.infoa website specialized on Investing, resources and articles. This site provides updated information on Investing. For more info on Investing visit: http://www.investingreviews.info
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