Within my research of the stock market I decided to ask 15 auxiliary questions to help guide me through this process. Auxiliary questions are questions designed to deepen your knowledge on the main question. I read some articles on the general process of the Stock Market to answer some of those questions. I finally interviewed my dad, Joe Smolen, who deals with the stock market everyday to gain a general understanding of the stock market. Lastly, I used all the information I gathered and put it into a concluding paragraph.
1.What is the stock market?
A place where investors buy and sell shares of a company. Companies list shares to grow their company. Gaining support from investors gives them a boost.
2. What’s the first step before investing in the stock market?
One of the first things you can do is open a brokerage account. A brokerage is an individual or group of people that charge a fee for executing trades on behalf of the investor. If the time is available to you, you can research on your own time and invest individual stocks.
3.How does the stock market work?
Investors buy a piece/ share of a company in hopes that that company does well. They are essentially investing in ownership of a publicly traded company.
4.When is the best time to buy a stock?
The market opens at 7:30 am Mountain time and closes at 2 pm. The last hours the market is open for is considered the best time to invest because of significant price movements. This is caused from last minute investors trading and selling before the market opens.
5.What does the word stock mean or represent?
Stocks or a ownership share in company or corporation. A group of stocks are called "shares" which entitles the investor to profits and assets of the company equal to the percent of stock they own.
6.How much money do I need to put into stocks?
$500-$1000 is a good amount when you are just starting. You can put more and more as you earn more money. 10% of your income is recommended to be invested. It is all personal and depends on how much you are willing to risk.
7.What is short-term investing?
Investments that can be easily converted into cash/ day trading.
8.What is long term investing?
A strategy for buying/investing in stocks for future/long time planning
9.When was the stock market created?
It was originally founded on may 17, 1792 (New York Stock exchange)
10.Who invented the stock market?
The idea has been around since the 1400s, with merchants buying hood hoping prices would go up. then 1611 the The Dutch East India company was open for people to buy shares. Then in the 1700 this idea was brought to the U. S . created the New York stock exchange known as the buttonwood agreement . then 1790 the Philadelphia stock exchange was created and it helped spur the development of the us economy.
11.How many people use the stock market?
It is estimated that 58% of Americans own a stock in 2022. This is up 8% percent from 2020. The stock market is a useful tool for gaining wealth as an average citizen.
12.Has the stock market ever crashed?
There have been multiple crashes since the creation of the stock market. Most recently the stock market crashed during Covid in 2020. THe market loss was 34% and it took over a month for the market to recover.
13.When was the best time in history for the stock market?
1995 is said to be the best year in American Stock Market history. Returns were at an all time high. The S&P-500 was up 37%.
14.Are there different stock markets for each country or just one global market?
The U.S. has a main market (New York Stock Exchange) just like most countries but there are 60 major global markets.
15.Has a person ever banked rich from the stock market?
Warren Buffett is one of the most famous investors. He has a Net worth of over $116.5 billion which also makes him one of the richest people in America. There have been many other people to bank rich of off the stock market. People with wealth before investing usually get more wealthy because they have more money to spare.
1.What is the stock market?
A place where investors buy and sell shares of a company. Companies list shares to grow their company. Gaining support from investors gives them a boost.
2. What’s the first step before investing in the stock market?
One of the first things you can do is open a brokerage account. A brokerage is an individual or group of people that charge a fee for executing trades on behalf of the investor. If the time is available to you, you can research on your own time and invest individual stocks.
3.How does the stock market work?
Investors buy a piece/ share of a company in hopes that that company does well. They are essentially investing in ownership of a publicly traded company.
4.When is the best time to buy a stock?
The market opens at 7:30 am Mountain time and closes at 2 pm. The last hours the market is open for is considered the best time to invest because of significant price movements. This is caused from last minute investors trading and selling before the market opens.
5.What does the word stock mean or represent?
Stocks or a ownership share in company or corporation. A group of stocks are called "shares" which entitles the investor to profits and assets of the company equal to the percent of stock they own.
6.How much money do I need to put into stocks?
$500-$1000 is a good amount when you are just starting. You can put more and more as you earn more money. 10% of your income is recommended to be invested. It is all personal and depends on how much you are willing to risk.
7.What is short-term investing?
Investments that can be easily converted into cash/ day trading.
8.What is long term investing?
A strategy for buying/investing in stocks for future/long time planning
9.When was the stock market created?
It was originally founded on may 17, 1792 (New York Stock exchange)
10.Who invented the stock market?
The idea has been around since the 1400s, with merchants buying hood hoping prices would go up. then 1611 the The Dutch East India company was open for people to buy shares. Then in the 1700 this idea was brought to the U. S . created the New York stock exchange known as the buttonwood agreement . then 1790 the Philadelphia stock exchange was created and it helped spur the development of the us economy.
11.How many people use the stock market?
It is estimated that 58% of Americans own a stock in 2022. This is up 8% percent from 2020. The stock market is a useful tool for gaining wealth as an average citizen.
12.Has the stock market ever crashed?
There have been multiple crashes since the creation of the stock market. Most recently the stock market crashed during Covid in 2020. THe market loss was 34% and it took over a month for the market to recover.
13.When was the best time in history for the stock market?
1995 is said to be the best year in American Stock Market history. Returns were at an all time high. The S&P-500 was up 37%.
14.Are there different stock markets for each country or just one global market?
The U.S. has a main market (New York Stock Exchange) just like most countries but there are 60 major global markets.
15.Has a person ever banked rich from the stock market?
Warren Buffett is one of the most famous investors. He has a Net worth of over $116.5 billion which also makes him one of the richest people in America. There have been many other people to bank rich of off the stock market. People with wealth before investing usually get more wealthy because they have more money to spare.
Interview:
Joe Smolen: SVP at empower retirement, 2nd largest provider of retirement saving. Deals with the stock market everyday.
Describe the American stock market in a simple sentence?
The opportunity for enhanced wealth with longevity in mind.
How does the American stock market affect your personal life?
The company that he works for depends upon a positive increase in the equity markets.
Is the Stock market helping or hurting you right now?
Joe said the stock market is hurting him right now. The market has been down and his investments are not doing well.
When did you first learn about the stock market?
Joe first learned about the stock market in 1999. This was when he got a job at empower.
Tips before investing in the stock market?
"Know your risk tolerance." You can lose money in the stock market. Knowing and preparing for this can help you a ton.
What does the stock market do for our economy?
The stock market has helped U.S. economy by increasing the general populations wealth.