Are you interested in learning about investing in the stock market? If so, you have come to the right place. In this post, William Schantz provides a basic overview of what investing in stocks is all about. So, if you are contemplating whether or not to invest in stocks, read on for more information!
The first thing you need to understand, according to William Schantz, is what stocks are. Stocks represent ownership in a company. When you buy a stock, you’re buying a piece of that company. And, as an owner, you’re entitled to a share of the profits (or losses) that the company generates.
The ask price is not always the same as the stock’s actual value, which is called the market price. The market price is determined by supply and demand – if more people want to buy a stock than sell it, the price goes up. If more people want to sell a stock than buy it, the price goes down.
You can buy stocks through a broker. A broker is somebody who buys and sells stocks on behalf of other people. When you use a broker to buy stocks, you have to pay them a commission. The commission is a percentage of the total value of the trade, and it’s how brokers make their money.
If you want to buy stocks without using a broker, you can do it through a direct purchase plan. With a direct purchase plan, you buy stocks directly from the company that issues them. Many companies offer direct purchase plans, but not all of them do.
Once you’ve bought some stocks, you need to know how to hold on to them. When you buy a stock, you own it until you sell it. So, if you want to keep the stock for a long time, you don’t have to do anything – just hold on to it.
However, if you want to sell the stock, you need to find somebody who wants to buy it from you. The price that they’re willing to pay is called the bid price. The bid price is usually lower than the ask price because when you sell a stock, you’re selling it for less than what you paid for it.
The difference between the bid and ask prices is called the spread. The spread is how brokers make their money on stocks that are being traded – they take a cut of the difference between the bid and ask price.
Now that you know how to buy and sell stocks let’s talk about what you can do with them. The most common thing people do with stocks is that they hold on to them and hope that they go up in value. This is called investing.
Investing is when you buy a stock and hold on to it for a long period of time, usually years. The idea, according to William Schantz, is that over time, the company will become more valuable, and the stock will go up in value along with it. This is how many people make money in the stock market.
When it comes to investing in the stock market, there are a lot of things you need to know, says William Schantz. It can be a complex and confusing world for those who are new to it, but with a little bit of research and guidance, it doesn’t have to be.