What is the difference between a bull market and a bear market?

The term bear or bull market describes how a particular section of the stock market is performing at any given time. If prices are rising it is considered a bull market. If prices are falling then it is a bear market. It is however, possible to earn a profit in either market. It is important to understand the concepts of supply and demand in order to do well in either the bear or the bull market.

What is equity? (in relationship to stocks)

Introduction
Equity is a term that depends greatly on the topic you are considering. In general equity is what assets you are entitled to after all debts that are attached to that asset have been paid off. An example would be a car that has been paid in full. The car is considered the owner's equity since the owner can sell the car and gain money. When an individual owns something that he has full rights to sell and keep the money from the sale, that asset is one of the owner's equities.

What is a stock symbol and how do I find the symbol for a company?

What is a Stock Symbol?
A stock symbol is a series of letters assigned to a particular stock (or security). This series of letters helps to differentiate stocks from one another when trading. Stocks listed in the New York Stock Exchange and the American Stock Exchange both have three letters or less. Stocks listen on the Nasdaq have four or five letters. The term "ticker symbol" is commonly used interchangeably with the term "stock symbol" but technically the stock symbol is a type of ticker symbol.

What is a stock market portfolio?

Introduction and Definition
A stock market portfolio is the group of investments that you hold. You can have stocks, bonds, mutual funds, etc. in your stock market portfolio. In fact most people find it most advantageous to have more than one type of investment in their stock market portfolio. Diversifying your stock market portfolio gives you the opportunity to benefit from different kinds of markets and risk options.

What is a stock index?

What is a Stock Index?
The term "stock market" is used very loosely to describe the overall stock trading world. When we hear about the performance of the stock market being good or bad (or up or down) what people are really talking about are certain indexes within the stock market.

What if an emergency arises and I need to get my money out of my stocks. Can I do so easily?

The answer to this question is: it depends. Stocks are naturally meant to be cashed in. But take the event that occurred on September 11, 2001. This terrorist attack leads to the closing of the stock market for four days. No money went in and no money could come out. In this kind of emergency, no one could get their money out of stocks. Of course the stock market does not close, holding your assets hostage, every day. In fact, there has only been one other time in 1933 that such a shut down happened. Terrorists' attacks and national financial shut-downs are one type of emergency. But what if you need to get your money out of stocks to make a payment on your house? This all depends on what is called liquidity.

The term "liquid" refers to how fast and easily your investments can be turned into cash. For example, the dollar bill in your pocket is as liquid as money gets. You have it and can use it right this second. But you know that there is no way to earn interest or any kind of returns by keeping your money in your pockets. So what do you do?

What determines the demand for a stock?

Demand for a stock is determined by how valuable the stock is. Value is determined by both numerical and perceived figures. Demand for a stock increases as supply for that stock decreases. Demand for the stock is not as high if there are enough stocks in supply to meet the demand. To understand what determines the demand for stock you must understand the following:

What are the risks of investing in stocks?

It is true that people can make their fortunes through trading in the stock market. It is a very appealing idea that you can be earning a great deal of money by doing hardly anything at all. But people often forget the risks of investing in stocks. Yes, it is true that you have the possibility of making money, but as your possibility for making money increases, so too do your risks for loosing money.

Stocks vs. Bonds
The biggest risk in investing in stocks is that a stock is not a bond. A bond is a loan or a debt that must be repaid at a certain point in the future. A stock on the other hand, holds no obligation with it. Once you buy a stock you may never see that money again. The company in which you are now a shareholder owes you nothing. As a partial owner in that company, you get to share in the companies successes but only if they decide to distribute dividends or if the company dissolves. You take a risk with your money and have to accept that you may never see your investment again and that you are the only one to blame.

What are the advantages of investing in stocks?

The stock market appeals to so many people because it makes available significant financial growth with minimal effort. Investing in stocks means that you pay for partial ownership of a company that you never have to work at. You can share in the benefits of owning a portion of a successful business, with no other obligations.

Can't loose more than investment
Unlike owning a business, in the stock market you can never loose more money than you invest initially. With stocks you know what you are risking up-front. You will be entitled to a portion of the benefits of a successful company, but never the debts. You are not responsible for poor behavior, illegal actions, or even complete company failure.

What are stocks?

Stocks themselves are a type of ever changing financial account. Stocks are also sometimes referred to as shares. Stocks are considered an investment. It is the hope that by investing in a stock you will see a return on your money. However, loosing the money that you have invested in a stock is a very real possibility.

Stocks are issued by companies. When you buy a stock, you are buying part of the ownership into that company. You therefore share the successes of the company and the failures of the company. The more stock you buy in a particular company, the more ownership you have.

What's the difference between a stock and a bond?

Introduction
Stocks and bonds vary greatly so it is important to understand these differences as you begin to invest. Stocks are generally characterized as a higher risk but higher return option and bonds are typically classified as the lower risk but lower return option. However, even this statement is not always true. Consider the following points made that differentiate a stock from a bond:

What's the best way to learn how to invest in stocks?

Many people are fascinated by the world of the stock market and want to learn how to trade stocks to make money. But what are the best ways to learn to invest in stocks? Learning styles will obviously vary from person to person, but there are some basic guidelines that can get you on your way. Some people need to see examples and have hands on training. Some people are more intuitive and can read a book or newsletters and just go out and apply the principles. You should choose the best methods, or combination thereof, for your learning style. There are a lot of options to consider. Some of them include - Newsletters and Blogs, books on investing, online courses, software programs, seminars and classroom setting programs, assisted investing programs, and one-on-one mentoring programs.

Newsletters and blogs are very easy to find and almost never cost anything. However be cautious and be sure to verify the information you find from these sources. Try to get information from reputable sources and take everything that is said as a suggestion and not as universal law.

The stock market seems so complicated! Can I invest in it on my own?

The stock market is only complicated if you do not know what you are doing. If you are willing to do your homework and learn about what it takes to make money through investing, you can certainly be successful in investing on your own.

The big question then is how much help do you want? Most investors do not live in a situation where they can go to the stock floors everyday and battle it out for prime stock. You probably have something a bit more effortless in mind. Consider the following investment help options:

I've always thought the stock market was legalized gambling. Is it really a safe way to invest my money?

The stock market is a safe way of investing your money if you are smart about it. There are more and less safe ways to invest depending if you intend to invest long term or short term. Investing works like this:

High Risk Investing = Higher possible returns + Higher possible losses
Low Risk Investing = Lower possible returns + Lower possible risk

How do I invest in stocks?

Anyone can buy stock. It takes a little bit more effort to make a return on that investment. When you invest in stocks, you expect to see your money grow. You know, however, that even though making money on the stock market can be relatively easy, it does not happen without your help. Following these suggestions will help you effectively invest in stocks.