Stock Basics

"The stock market is a complex system where shares of publicly-traded companies are issued, bought and sold" (Patton, 2015).

"No one likes to lose money. Moreover, the pain threshold of some is greater than it is with others. If you’re considering an investment in the stock market and the thought of a loss upsets you, you probably shouldn’t invest" (Patton, 2015).

Why:
"Even if you don’t have a brokerage account of your own and invest with your own money, you may very well be exposed to stocks via your 401(k) retirement account, pension plan, college savings plans, health savings plans, or insurance policies" (Hays, 2017).

"Once a tool for the rich, the stock market has now turned into the vehicle of choice for growing wealth for many segments of the population. Advances in trading technology and low-cost brokerage services on the internet have opened up stock markets so that today nearly anybody can own stocks with the click of a mouse" (Hays, 2017).

Amazon

Amazon.com, Inc.
NASDAQ: AMZN - Aug 23, 4:12 PM EDT
958.00USDPrice decrease8.90 (0.92%)

Ticker Symbol: AMZN

Common Stock:
"A share of ownership in the corporation, which confers rights to any common dividends as well as rights to vote on election of directors, mergers, and other major events" (Berk, 2016, p.727).

Preferred Stock:
"Stock with preference over common shares in payment of dividends and in liquidation" (Berk, 2016, p.728).

Professions

• Investor
• Stockbroker
• Personal Financial Advisor
• Financial Analysts

"There are many factors that determine whether stock prices rise or fall. These include the media, the opinions of well-known investors, natural disasters, political and social unrest, risk, supply and demand, and the lack of or abundance of suitable alternatives. The compilation of these factors, plus all relevant information that has been disseminated, creates a certain type of sentiment (i.e. bullish and bearish) and a corresponding number of buyers and sellers. If there are more sellers than buyers, stock prices will tend to fall. Conversely, when there are more buyers than sellers, stock prices tend to rise" (Patton, 2015).