In fact, all working class Americans are being hammered by corporations that have been able to find cheap labor overseas and also buy out the politicians who are supposed to regulate corporate behavior.
So, if you don’t own anything, the odds are being consistently stacked against you. Thankfully, to save yourself financially, you don’t have to own a major corporation, you only need to own a share of it. That’s where stock market investing comes into play.
This article can get you started down the path toward understanding how to invest in stocks. Don’t be afraid and don’t be tempted to believe that you need a lot of money. But remember that investors in the stock market were among the first to recover from the last recession, because much of our government’s resource pile is going toward supporting major corporations. The system isn’t right, it’s not fair, but it’s one that you can protect yourself from by owning a piece of the companies that are sucking up the bulk of American wealth.
- Stocks aren’t just pieces of paper.
When you buy a share of stock, you are taking a share of ownership in a company. Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings.
- There are many different kinds of stocks.
The most common ways to divide the market are by company size (measured by market capitalization), sector, and types of growth patterns. Investors may talk about large-cap vs. small-cap stocks, energy vs. technology stocks, or growth vs. value stocks, for example.
- Stock prices track earnings.
Over the short term, the behavior of the market is based on enthusiasm, fear, rumors and news. Over the long term, though, it is mainly company earnings that determine whether a stock’s price will go up, down or sideways.