Stocks...

[Wren57]

Hondaman-iac asked about this, so I thought I'd post it here in case anyone else has interest in the subject...

the run-down on stocks is this... each share of stock is partial ownership to whichever company it is purchased in. So... basically, buy a good company with potential to grow. You might think this is obvious, which it is, but companies shares are already priced according to expected growth, so you want to find one with a fairly low P/E Ratio for it's sector, good fundamentals, positive earnings, and a company that has a product to market that will do well. Stocks also rise a lot on speculation, so make sure the company is solid and at low-cost before you buy... very hard to explain how to pick stocks... also look at the stock charts for any downward trends such as lower highs etc... hard to explain... and the indexes are just an average of each stock price in the individual index where each stock is weighted based on its market cap (# of shares x share price)...

feel free to ask any questions