If you are new to investing, stock trading terms may be confusing. It is important to know some basic terms and add to your knowledge as you progress in your stock trading experience. Following is a short list of terms you will hear most often. For each of these, there is more involved than what you will see here. Just knowing the basics will help you more readily absorb the rest. Eventually, you will be an expert!
Well, the Federal Reserve has been buying bonds to lower interest rates, which in turn has made mortgage rates go down. Everyone and their mother have been able to refinance. When you refinance, your monthly payment goes down. You now have more money in your pocket. You could use the cash to spend on other things like: paying down other debt, saving for retirement, taking a vacation, going out to dinner, etc. You simply feel wealthier.
After the closing price, the table will list the change, or the amount that the stock changed when you compare yesterday’s closing price with the closing price for the day before. This will be listed as a positive number (the stock went up) or a negative number (the stock sold for less yesterday than the day before).
Capital Gain- How much capital the stock investor has above the initial cost of the stocks. When the stock is sold at a profit, the investor has gained capital.
Happily, there is growing research that over the long term, dividend-paying stocks generate the best total returns. So the dividend-Review investor benefits in two ways: He or she gets an important income stream, and the stocks perform better overall. And there is yet a third advantage: Most dividends are taxed at 15%, which is lower than most investors’ marginal tax rate. Thus, dividends are the most tax-advantaged form of income you can have.
Making money and creation of wealth is no different. There are plenty of teachers who conduct seminars in Property investing, Stock market and Internet marketing and charge enormous amount of money to teach you the tricks to be successful. But how many people are becoming rich following their advice and how many are going broke? It is a mystery because no one knows.
Stock trading online allows you the opportunity to invest not only in your own country but across the world market in real-time. To get going it is advisable to start small with a minimum amount of investment. Then you will learn about the marketplace as you gain confidence within your financial comfort zone.