Stock Trading Research Paper

Over the past several days I have learned about investing. The first thing being that investing is the act of putting money into something in hopes of getting more money out later. You can invest into anything that you want, as long as you have the money to do so. The stock market is an extremely large network where people go to buy, sell or trade parts of their company. Each part of a company is called a share. A stock is when you own a piece of the company in which you invest in. A bond occurs when you loan money to the company like a bank would. Bonds are paid in interest. All investments come with risks and rewards. The risks are the bad things that can come from investments, and the rewards are the good things. A big risk could bring a big loss. That is when a stock broker can come in handy and …show more content…
Most stock brokers charge a commission fee per share of stock they buy, sell, or trade for you. The average commission's fee is $15 per share of stock. But a stock broker is not always necessary as long as you know the basics. There are three stock categories in which a stock can fall under; size, style, or sector. Size is measured in caps based on the market value of the company, small-cap has less than one billion dollars, mid-cap has between one billion dollars and 8 billion dollars, and the large-cap has more than eight billion dollars. As for style, it's divided into two sections based on the way they are performing; value (lower-than-average rate, but have potential) and growth (higher-than-average rate, but are less stable). In sector categorization the business industries are divided by what they represent; examples being oil, energy, construction, technology, and transportation. There are also two types of markets; the bull and the bear. The bull market is said to be good because its overall performance is higher than 20%, it is called so because a bull thrust their horns