Shares for dummies

vonniec

Can someone tell me how this whole shares thing works?! What makes them go up and down?? How do you get into them in the first place?

PCPhoto

in simple terms ..... supply and demand.

- the more of a demand for something - the higher a price can be set to maximise profit,

- the higher the supply of something - the more available it is so a lower price must be set - to generate sales.

how do you get into them in the first place - a healthy interest in stock markets, a fascination with the markets, a financial background, a bit of loose cash and willingness (Greed) to attempt to increase it.... contact a stockbroker to get information on basic costs involved.... its not cheap.

The value of a stock can drop and rise in seconds - which essentially makes it a form of gambling.... money is lost and gained regularly.

vonniec

thanks PCPhoto... just one more question though: why would there be demand?? is it when the company is going good everyone wants a piece and then plan to sell out before it goes bad??

Wudyaquit

vonniec wrote: »

thanks PCPhoto... just one more question though: why would there be demand?? is it when the company is going good everyone wants a piece and then plan to sell out before it goes bad??

Demand is driven by expectation of future profits - so any news that people think will increase profits in the future will increase demand (e.g. higher than expected sales figures / unpopular CEO resigning).