The Average Stock Market
The stock market is growing in popularity as an investment option. This is partially a result of the current generation having higher wealth, but also a reflection of the way that global is becoming local and access to information is easier than ever before.
Once the domain of high-powered, wealthy individuals only, the stock market and information about stock trends are now within everyone's reach. Additionally, as the average stock market returns have grown year by year, the financial stock market is becoming a more popular investment.
The Average Stock Market
There are many stock markets in existence today. Some of the major ones, which you may have heard of, are: the New York Stock Exchange (NYSE), the American Stock Exchange (Amex), and the National Association of Securities Dealers (NASDAQ). In Europe, major stock exchanges include the Deutsche Borse (in Germany) and the London Stock Exchange (in the United Kingdom).
The average stock market is open to private investors as well as financial institutions, though generally the actual transactions are undertaken by professional stock brokers. Stock markets function as an open market place at which traders are able to purchase company shares, or stock, for a price agreed upon.
The market place can be an actual location, but virtual market places are becoming more and more common. Companies use the funds raised on the stock exchange for further growth.
Financial Stock Market
Investors need to recognise that the stock market is subject to massive fluctuations. By being both astute and lucky, you can make a great deal of money by investing in stock - but the potential for a high return is balanced by the higher risk.
Many investors have learnt in the first few months of 2009 the risks of investing stock - with many companies' stock plummeting. Of course, this has affected not just the growing number of people with stock investments, but also anyone with a superannuation fund - that is, most working adults. Stock trends should be closely considered before you invest wealth in the stock market.
Momentum and movement can change rapidly, and the numerous influences that effect trends can be hard to keep a finger on. For wealthy individuals, managing a stock portfolio is a full time job, and one that takes a great deal of skill as well as perseverance and a phenomenal attention to detail.
More on Stock Trends
In layman's terms, the phrase 'stock trends' (also called 'market trends') simply refers to whether a financial stock market is moving upwards or downwards. Or even more simply whether you stand to gain or lose money by investing in the stock market.
Obviously being able to analyse and recognise trends is of paramount importance in order to increase your wealth! Stock trends are generally broken down into three broad categories: primary market trends, secondary market trends, and secular market trends. Experts base their trend analyses on past data, with the idea that market movements tend to be cyclical.
To become fluent in the language of stock trends, you will need to become familiar with terms such as 'bull market', 'bear market' and 'market bottom' - these are three primary trends. Generally, a primary trend will last for at least a year, and is in effect across an entire market, or at least across an entire sector.
A bull market is a good thing - this is usually associated with confidence among a large number of investors who believe they stand to gain from a rise in stock prices in the future.
At the opposite end of the scale is the bear market. The bear market is characterised by a downward trend over a long period of time. Investors have los money, but consider selling, and often do sell, because they are fearful of further loss.
A market bottom is the changeover period from a bear market to a bull market. Investors largely believe that a market has dropped as low as it is going to go, and the stock trend will be upwards from this point onwards.
This is obviously a good time to invest - prices are at their lowest for a period of time and wise investors can get excellent returns. In contrast to primary trends, secondary market trends are short term changes.
They could be thought of as the exception to the rule - if the primary trend is a bull trend, with prices rising, then the secondary trend would be a short term drop in price, against the primary trend. The third kind of trend is a secular market trend. This is even longer term than a primary trend, and lasts for up to 25 years. It is composed of a series of primary trends.
There is obviously a lot to learn to become an expert in the average stock market - good luck with your journey to becoming a savvy investor!
Once the domain of high-powered, wealthy individuals only, the stock market and information about stock trends are now within everyone's reach. Additionally, as the average stock market returns have grown year by year, the financial stock market is becoming a more popular investment.
The Average Stock Market
There are many stock markets in existence today. Some of the major ones, which you may have heard of, are: the New York Stock Exchange (NYSE), the American Stock Exchange (Amex), and the National Association of Securities Dealers (NASDAQ). In Europe, major stock exchanges include the Deutsche Borse (in Germany) and the London Stock Exchange (in the United Kingdom).
The average stock market is open to private investors as well as financial institutions, though generally the actual transactions are undertaken by professional stock brokers. Stock markets function as an open market place at which traders are able to purchase company shares, or stock, for a price agreed upon.
The market place can be an actual location, but virtual market places are becoming more and more common. Companies use the funds raised on the stock exchange for further growth.
Financial Stock Market
Investors need to recognise that the stock market is subject to massive fluctuations. By being both astute and lucky, you can make a great deal of money by investing in stock - but the potential for a high return is balanced by the higher risk.
Many investors have learnt in the first few months of 2009 the risks of investing stock - with many companies' stock plummeting. Of course, this has affected not just the growing number of people with stock investments, but also anyone with a superannuation fund - that is, most working adults. Stock trends should be closely considered before you invest wealth in the stock market.
Momentum and movement can change rapidly, and the numerous influences that effect trends can be hard to keep a finger on. For wealthy individuals, managing a stock portfolio is a full time job, and one that takes a great deal of skill as well as perseverance and a phenomenal attention to detail.
More on Stock Trends
In layman's terms, the phrase 'stock trends' (also called 'market trends') simply refers to whether a financial stock market is moving upwards or downwards. Or even more simply whether you stand to gain or lose money by investing in the stock market.
Obviously being able to analyse and recognise trends is of paramount importance in order to increase your wealth! Stock trends are generally broken down into three broad categories: primary market trends, secondary market trends, and secular market trends. Experts base their trend analyses on past data, with the idea that market movements tend to be cyclical.
To become fluent in the language of stock trends, you will need to become familiar with terms such as 'bull market', 'bear market' and 'market bottom' - these are three primary trends. Generally, a primary trend will last for at least a year, and is in effect across an entire market, or at least across an entire sector.
A bull market is a good thing - this is usually associated with confidence among a large number of investors who believe they stand to gain from a rise in stock prices in the future.
At the opposite end of the scale is the bear market. The bear market is characterised by a downward trend over a long period of time. Investors have los money, but consider selling, and often do sell, because they are fearful of further loss.
A market bottom is the changeover period from a bear market to a bull market. Investors largely believe that a market has dropped as low as it is going to go, and the stock trend will be upwards from this point onwards.
This is obviously a good time to invest - prices are at their lowest for a period of time and wise investors can get excellent returns. In contrast to primary trends, secondary market trends are short term changes.
They could be thought of as the exception to the rule - if the primary trend is a bull trend, with prices rising, then the secondary trend would be a short term drop in price, against the primary trend. The third kind of trend is a secular market trend. This is even longer term than a primary trend, and lasts for up to 25 years. It is composed of a series of primary trends.
There is obviously a lot to learn to become an expert in the average stock market - good luck with your journey to becoming a savvy investor!