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Frequently Asked Questions (FAQs) on Stocks

  1. I was unable to purchase stock at the start of the day because of a delayed opening. What does that mean?

  2. How much time will it take to learn about the stock market and how to invest in stocks?

  3. What is Dow Jones Industrial Average?

  4. What does it mean when the Do Jones Industrial Average is up or down?

  5. What's the Standard & Poor's 500?

  6. How is the market value of a stock determined?

  7. What does par value means?

  1. I was unable to purchase stock at the start of the day because of a delayed opening. What does that mean?
    A delayed opening doesn't mean that the traders and brokers were late to work! The exchange opens on time every day. Simply stated, exchange officials may postpone the beginning of trading in a particular stock because of certain conditions, such as a major influx of buy or sell orders or pending corporate news, that may influence the movement of a stock.

     
  2. How much time will it take to learn about the stock market and how to invest in stocks?
    If you're serious about building your net worth through investing, you'll never stop learning. Remember, no one will ever be more concerned about your money than you. Take at least an hour a day of reading and research to take control of your finances.
     
  3. What is Dow Jones Industrial Average?
    The Dow Jones Industrial Average (DIJA) is the oldest and most widely quoted of all the market indicators. It is comprised of 30 actively traded blue chip stocks that represent approximately 15 to 20 percent of the market value of New York Stock Exchange (NYSE) stocks.
     
  4. What does it mean when the Do Jones Industrial Average is up or down?
    Unless you personally own everyone of the 30 stocks that make up the DIJA, it doesn't mean a great deal. It is a broad indication of market direction. When you hear that the market is up 85 points, that simply means that this group of stocks as a whole is up approximately 85 points in value. It's just a market bellwether only. The DJIA could be substantially up one day and your particular stocks could be down in value.
     
  5. What's the Standard & Poor's 500?
    This is an index showing the change in total market value of 500 stocks in relationship to their base period of 1941-1943. It's composed mostly of New York Stock Exchange-listed companies, with some American Stock Exchange and over-the-counter stocks. Like the Dow Jones Industrial Average (DJIA), S&P 500 is an another indicator of how well the stock market is doing. Most financial experts believe that it is a better indicator than the 30 stocks of the DJIA.
     
  6. How is the market value of a stock determined?
    The market value of a stock is the price that someone is willing to pay for it. Many things effect what an investor is willing to pay. Here are just some:
     
    • the dividend/earnings growth outlook
    • the company's competitive position
    • the value of the assets of the corporation
    • investor sentiment
    • supply and demand for the shares
    • political and economic developments
  7. What does par value means?
    Par value, or stated value is nothing more than an arbitrarily assigned value placed on stock when it is first issued. Par value is a stable figure and never changes. The par value, which is frequently set at $1, is used as an accounting device but has no relationship to the actual market value of the stock.

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   Always keep in mind to:
  1. Spend less than you earn! People who spend every penny they make usually end up going broke.......
  2. Take enough risk on the money you save! Playing safe by putting your money under the mattress or in a savings account will not make you wealthy..

Remember that..... Fully one-fifth of humanity, some 1.3 billion people, struggles to survive on less than $1 per day. About 40% of humanity survives on less than $2 per day. More than a billion people around the world will go to bed hungry tonight. Life expectancy in some 32 countries is less than 40 years. If you have a few extra dollars in your pocket (you don't have to be a millionaire to make a difference), please share some of your financial good fortune with others who are in great need.


Think About It...  Being in the 'now' brings a freedom, unlike living in the past or in the future, which is a kind of imprisonment. This isn't a kind of a denial where you pretend life doesn't have problems. Life is full of problems, but most of those stresses and failures are reliving old hurts or worrying about future concerns. -- Carl Honore

When you 're diagnosed with cancer, you start to bargain with God: "Let me get through this, and I'll take better care of myself. I'll get my priorities in order. I'll learn to live every day to the fullest." Isn't it sad that you have to get sick before giving yourself permission to live life to the fullest? -- Robert Schimmel Look at Life in different & Positive ways