hey interested how do you earn on stocks

Discussion in 'All other topics' started by bigmand, Feb 16, 2004.

  1. bigmand

    bigmand Member

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    when you have purchased stocks how do you earn on them. what is the real value of a stock other than buying it and selling it for market at loss or gain?
     
  2. aXidburn

    aXidburn Guest

    well lets take a stock for example,
    AMD(company who makes cpu's) there stoc is at i think about $15.00 so if u buy 100 chares at $15 dollers it will cost you $1,500. then lets say it goes up 5 dollers over the next week and the stock is at $20.00 and you decide to sell it at $20 dollers and youmake $2,000 from selling it so you made a profit of $500 dollers!!
    too bad AMD stock dont go up..lol
     
  3. leviticus

    leviticus Regular member

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    This is about the only thing I learned in Economics class, because the teacher repeated it so much...

    [bold]Buy Low, Sell High[/bold]
     
  4. aXidburn

    aXidburn Guest

    come on i am in 8th grade and i know this...lol
    a little too much into the stock market...lol
     
  5. leviticus

    leviticus Regular member

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    Well that quote has served me well. Cuz I've invested over seven grand in the market and have done quite well. And I'm only 19. My parents are into the stock market big time. So with their help I went in around 15. They got me started, but that was it. Whenever I ask them for help now, they tell me to do my own research. Im mostly in technology stocks.

    This was a weird thread to start in these forums.
     
  6. aXidburn

    aXidburn Guest

    haha... i dont really invest my own money well kinda my money in my bank...although my fusking amd stock sucks!!!!
    i am only 14...my mom is in the stock market also like alot....a couple weeks ago i told my mom to buy ebay stock at like $52.00 and she didnt and in the past like 3 weeks it has gone up to $67.00
     
  7. leviticus

    leviticus Regular member

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    Damn, that would of been nice. $15 jump. Just curious, how much stock did you tell your mom to buy?
     
  8. aXidburn

    aXidburn Guest

    300 shares...but a little too late...lol
     
  9. bigmand

    bigmand Member

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    there has to be interest of some kind i was even told this that at the end of the year a company has to pay divedends to the stock holder ? any of this ring a bell
     
  10. aXidburn

    aXidburn Guest

    yes, depending on the stock...ex some stocks you do get a divedend...like TDK has it....what it is that for everyshare of that stock that you own they pay u that much....sorta like some one paying you intrest. so when buying stocks thats a pretty good thing to look at i mean 80 cents might not look like much but if u own 100,000 shares its alot of money
     
  11. bigmand

    bigmand Member

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    your dreamin no way they pay you the value of the stock every year that would mean if there stocks are worth 20 and you bought 100,000 shares at 9 a long time ago they made 90,000 and they have to pay you 200,000 every year. Im sure theres something, a percentage of there gross profit and then after expenses of the cxompany they divide it between shareholders of common stock but it seems that most people dont know that or that im wrong, some one anyone at all know? it cant be that it has no value other than hoping it gets more expensice then sell
     
  12. aXidburn

    aXidburn Guest

    no! a divedend is differnt lets say a stock has a divedend of 20 cents and thet stock it self is 10 dollers a share...now for everyshare you own the company(of the stock) will give u 20 cents
     
  13. bigmand

    bigmand Member

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    so unless the stock specifically says it paya it doesnt? an ibm stock which is more than 60 doesnt pay anything you buy it at 65 hoping it will go to 66
     
  14. vurbal

    vurbal Administrator Staff Member

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    There are 2 basic types of stocks - preferred shares and common shares. Preferred shares get you dividends, while common shares may or may not.
     
  15. Prisoner

    Prisoner Guest

    IBM is a good example, it does pay a dividend, but only if you use dividend reinvestiment. This is similar to explained as before, but instead of cuting you a cheque, the money buys more stock. So over time you start owning .003 of stock as that is what the dividen could buy. A lot of stocks do this and in a lot of cases is beter than geting a cheque. The best stock I have ever bought was Disney. Not in that it has gone up, in that it has split so many times. When A stock gets to be a certain value, the company can choise to split it to drop the value down. So if you have 2 shares after the split you have 4. I bought 3 shares in Disney, and have dividen reinvestiment. Now I have 25 shares, and its about the same price I bought it.
    Some other fun things to do in the market are to short on stocks. The stock market is like legal gambling, you can bet things go down, go up, buy and sit on a stock or day trade. Lots of fun out there. I am the lazy type and like to buy and sit. The one I wish I bought was Nortel about 2 years ago, at 0.8 cents per share. I thought it was going to fall off the stock market. But instead its about $6 now. I should have bought in. Oh well.
     
  16. DMW

    DMW Regular member

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    Ok guys, only just read this thread. Any advice to a complete sock newbie on how to get started?
    regards
     
  17. Prisoner

    Prisoner Guest

    For a newbie in the stocks, i would say buy something long term and see how you like you. Example IBM, Toshiba, HP, Coke, Disney ete. Something that will be around for a while. Then get comfortable and start playing. The Best for dividen and turn out are Bank stocks. Especially Canadian banks, never go down, split every 7years as clock work.
     

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