The stock market began in the late 1700s, when the United States was still young. The first American stock exchange was started in Philadelphia as a way to help business in the new world. Soon after, the New York Stock Exchange was created, and it was soon followed by the New York Stock and Exchange Board, which set the pace that Wall Street has today.
When an investor buys a stock, they become a shareholder, or a part-owner of the company. The business then uses the money it gets from investors to grow its business and make more money. Because of these profits, the price of the stock (the amount of money needed to buy a share of the company) is going up. Investors who bought stock in the company have seen their money grow, and if they decide to sell this stock, they will make more money than they paid for it.
This is what the stock market is all about. For a long time, the stock market was a physical place where investors did business through their stock brokers. Stock brokers were professionals who would "broker" a deal between a company selling stock and an investor who wanted to buy it. In the modern world, however, finances are handled very differently. Online stock investing is made possible by a huge network of computers all over the world.
People who want to invest in stocks online can set up an account through any of the many online brokerage houses that are around today. It is very important to work with a reputable brokerage firm. Some of the most well-known brokerage firms, like Ameritrade and ETrade Financial, have great reputations in the industry.
Once a good relationship has been made with a brokerage company, the first step to investing in stocks online is to set up an online account with the company. The site lets you set financial goals, build your portfolio, and buy and sell stocks. People who invest this way can get access to their account profile online right away, get up-to-date stock quotes, and do research and find out more about companies and the stocks they offer.
Low broker's fees are one of the other big advantages of buying stocks online. Traditional brokerage fees can be expensive, but buying stocks online usually costs between $7 and $10 per trade. Online stock investing also gives the investor more control over their portfolio. The investor decides when to buy and sell stocks, not the stock market.
The brokerage company gives the investor online tools that let them track the progress of stocks they are interested in and look at the most complete information they can find. The most obvious benefit of investing in stocks online is that it is easy and can be done from home, which saves time and money.
The world of buying and selling stocks has changed, and both stock brokers and investors need to keep up. Online stock investing is the way things are done now and is likely to be the way things will be done in the future.
