Australian Citizenship Exam
Examining Online Stock Investing
The stock market can be traced back to the late 1700s, in the infancy of the United States. Beginning in Philadelphia, the first American stock exchanged was founded in order to bolster commerce in this new world. Before long the New York Stock Exchange was born which soon gave rise to the New York Stock and Exchange Board which led the now frenetic pace that exists today on Wall Street. In buying a stock, an investor becomes a shareholder - or part owner - in a company. The company then uses the money supplied by their investors to further their business and increase profits. These profits are reflected in the growing price of the stock - the money needed to purchase a share of the company.
Investors who now own stock in the company have seen their investment grow and should they now decide to sell this particular stock they will make more money than they originally paid for it. This is the basic premise behind the stock market. For many generations, the stock exchange was a brick and mortar world in which investors operated through their stock brokers - professionals who would "broker" a deal between the company that was selling stock and their investor who wanted to buy it. In today's world, however, finance is conducted very differently; through a vast network of worldwide computers that act as a facilitator to online stock investing. Online stock investing offers consumers the opportunity to establish an account right on the Internet through any one of the online brokerage houses in existence today.
It is of the utmost importance to choose a reputable brokerage company with which to work; some of the more popular companies such as Ameritrade and ETrade Financial have earned superior reputations in the industry. Once a relationship with a reputable brokerage company is established, online stock investing first requires setting up an online account through the company. You can then build your portfolio, set financial goals, and buy and sell stocks through the site. Some of the benefits available to those who invest in this manner, include immediate access to their account profile online, up-to-the-minute stock quotes, and research and information regarding companies and the stock they offer. Some of the other significant benefits to online stock investing include low broker's fees. While traditional brokerage fees can be on the pricey side, online stock investing generally costs the online investor $7 to $10 per trade. Online stock investing also provides the investor with greater control over their portfolio; the buying and selling of stock is completely dependent upon the investor’s decision. The online tools provided by the brokerage company allow the investor to chart the course of stocks of interest and review the most comprehensive information available. Of course, the most obvious benefit of online stock investing is its convenience; investing can be done right in the home – saving time and money. The world of trading stock has changed; and stock brokers and investors alike must keep pace in this new financial world.
Online stock investing is the present - and stands to be the future - of trading stock.
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