Buying Your First Stock

The stock market might give the impression of being complicated and only for the well experienced and rich, but that is certainly not the case! We believe that with the right research and guidance you can navigate the stock market and enjoy it. Anyone with an interest in how it works can become a stock buyer without having a large amount of money in the bank. All it takes is some preparation and devotion. Let’s look in to some basic facts about the stock market. A stock is, as probably most of you know, a share in the ownership of a corporation. Holding a company’s stock means that you are one of the many owners of that company, and as an owner entitled to your share of the company’s earnings. Being a shareholder does not mean you have any say in the day to day operations, but it does entitle you to one voting right per share to elect the board of directors at annual meetings. You, as a stock buyer, could get paid either from buying a stock for a certain price and then selling it at a higher price in the market: this is capital appreciation. You can also make money by being paid a portion of company profits; and those are called dividends.

Do your homework! Challenge yourself to list some public companies that you trust—really trust – with your spending dollar. Solid companies with solid balance sheets and solid management will, over time, outperform and deliver value to the investor. Brands you love are good starting points. Dividend paying companies are a huge plus. Do your favorite companies have a diverse board of directors? Are there women in the “C” Suite? (top senior executives) Companies with diversity at the top have been proven to outperform their peers over time. Research your list on sites like Morningstar.com or Yahoo Finance.

Next, you’ll need to figure out the “how’. How will I purchase stocks once I decide what I want to buy? There are many providers that offer online trading if you prefer doing it from home, but you can also use a broker over the phone or even meet one in person. The second option may be a bit more expensive but the pros there are that you get advice from a professional.

For more information on investing call us or visit our website www.divinewealthwise.comhttp://www.divinewealthwise.com