INVESTING IN STOCKS
What Is It?
HOW DOES A BUSINESS BEGIN?
It usually starts with VISIONARIES who have BIG IDEAS! See tab on Visionaries.
Big ideas are awesome but they can’t be commercialized without CAPITAL! Capital is the funds needed to start and grow a business enterprise.
This is where investors step into the picture. Companies that wish to grow invite the public as well as institutions to purchase a stake in the company by selling shares on the STOCK EXCHANGE.
There are stock exchanges virtually in every country around the world. Locally we have the Trinidad & Tobago Stock Exchange that facilitate the trading of shares in our larger
companies such as Massy Holdings, Ansa Mcal, Republic Financial Holdings
Limited and National Flour Mills.
Shares of the huge multinational (global) corporations are generally listed on international stock exchanges such as The New York Stock Exchange (NYSE), The London Stock Exchange (LSE) and The Hong Kong Stock Exchange (HKSE) to name a few.
The NASDAQ Exchange trades
mainly in technology stocks and has over 3000 companies including Google, Facebook and Amazon.
Prior to the advent of online internet transacting an individual couldn’t just walk into the stock exchange to buy a share like it was a pair of jeans. You would need to make your purchase through a STOCK BROKER.
KEY CONSIDERATIONS WHEN CHOOSING A BROKER
Choosing a Broker
When choosing a broker, the following are important:
A strong industry reputation,
Up-to-date security standards,
Solid customer service,
Robust trading tools,
Helpful educational content, and
Access to the markets you want to trade.
WHO ARE STOCK BROKERS?
These are investment professionals that buy and sell shares on your behalf. They also provide expert advice and are often given the liberty to invest your money in various companies listed on different stock exchanges at home and abroad.
Nowadays, thanks to the internet, individuals can bypass these traditional brokers and buy and sell
shares for themselves using online trading platforms such as TD Ameritrade, Fidelity Investments and Charles Schwab.
That said, you still need to do your homework before you venture into online trading. There is also no substitute for an experienced broker with a good track record.