2 questions about the stock market.?

Qυеѕtіοח bу Sean N: 2 qυеѕtіοחѕ аbουt tһе stock market.?
1.іf i wеrе tο ѕау bυу a walmart stock a month before christmas fοr 130 dollars аחԁ during december tһе stock goes up tο 200…wουƖԁ іt bе complicated tο sell tһаt stock? wουƖԁ i bе selling іt tο οtһеr stock buyers οr back tο walmart?


2.саח i mаkе money bυу simply holding a rising stock?

i know tһеѕе аrе very basic qυеѕtіοחѕ bυt im young аחԁ thinking аbουt getting іחtο tһе market іח mу future bυt dont completely understand іt

Best аחѕwеr:

Aחѕwеr bу KATIE

Add уουr οwח аחѕwеr іח tһе comments!

5 Responses to 2 questions about the stock market.?

  • Greg O says:

    1. You would probably be investing through a broker or electronically. You sell to other buyers at the current going rate.

    2. Yes, but to actually “have” the money to spend you need to sell the stock and deposit it into a bank account.

  • ou812 says:

    If you have a broker, and wish to invest a sum of money, you give him the money and he makes the initial stock purchases for you in real time, it buys and sells in real time, so even if it goes up a penny you make money. However, there is a fee for this service, and going it alone on the net is dangerous and risky. The best type of stock are usually futures, salt, sugar, pork bellies, because they maintain a small but equitable profit margin year after year. More dangerous stock can be volatile and subject to world inflation, deflation, costs related to shipping and so forth, on a day to day the stock can rise and fall dramatically.
    Now having explained that, we have to also consider outside factors, such as the value of the dollar, the market in general and the costs of doing business. All of which can be indicators of the potential for loss on your money. Stick to well known, usually stable companies and you will do well in the long run, nothing moves in reverse. Real estate is also a great option for investing money, it almost never loses value, in the long run. Mind you it is also one of the principal reasons for the last stock market crash.

  • Immortal says:

    1. You sell to another investor like you (stock buyers) who happen to have the intention to buy it. No, Walmart will not receive even a cent from the selling, because it has already receive the money when it seek out an underwriter to buy the shares. When a company has IPO, the money from the initial trades will usually go to the market makers selling the stock. After that, it is between stock traders (like you), the market makers, and other big money investors.

    2. You can make money from the dividends paid out, if there is any dividend to be paid. When you sell the stock, you will make money from the price appreciation. If you sell it now at $ 200, then your return will be $ 70.

  • Saravan D says:

    Selling is not complicated. Stocks will be bought by the other investors. If the stock appreciates above 50% it is better to exit the counter partially as a standard investment practice.

    If the company pays dividends basing on its performance, you will earn money by buying and holding it. However , the stock apprreciation will be earned only by selling the stock.

    Inorder to get a touch of these basics, may be you can go through http://www.funda2invest.com site.

  • Angel says:

    1. Yes, you will make money if you sell your Walmart stock. Someone else in the market who you called a stock buyer will buy the stock from you. Stock investment is exactly like a trading business. When the Walmart stock reaches 200, you probably would say it is a good time to sell it off. But, on the other side, some other stock buyer may find the stock is cheap in value and are willing to buy it from you and invest for long term gain. That is how the stock trading works.

    2. Yes, you are making money by holding a rising stock. However, the money you are profiting is just a “virtual money” and you may have the risk of losing the profits if the stock undergo a reversal. So, the best action is to liquidate the stock to real cash.