DEFINITION STOCKS
DEFINITION STOCKS
Can anyone give me a simple definition of how stocks work..? 
)?
Ok so im don't get stocks this is what im not understanding they say if you put money in stocks and it goes up then you are making money and if the stocks go down then your "losing" money dose that mean you have to pay someone or what is there anyone who can explain this to me.. im so lost.. thanks in advance...
TRADING STOCKS is pretty confusing. Hopefully this a simple example for you:
Let's say that you want to buy 1 share of Goldman Sachs and you paid $125 for that share. The share price for Goldman Sachs will fluctuate everyday. The price fluctuation is based on the number of people wanting to sell Goldman Sachs and the number of people wanting to buy Goldman Sachs. If there a lot of people wanting to buy on a given day, then the price per share will be bid up. If there are more sellers, then the price will go down.
Let's say in a month the price is $130. If you sold the stock you would make a profit of $5. Conversely, if the price is $120 in a month and you sold the stock, you would lose $5.
You only realize you profits/losses when you sell the stock.
Hope this helps.
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