Stephen Cooper

Getting Started

Gene said: "Hi, Im looking to get into investing but im a TOTAL newbie to the market. All I know is that you buy shares of stock, if its value goes up you make money and if its value goes down you lose it. Thats it. Does anyone know of a good book or internet source, or even where or how I can take some courses to teach me how to work the market? Also, whats the deal with those online sites like "Ameritrade", do you buy shares through them, is that how it works? Do they do anything else? Im a fast learner and really good at math (that has something to do with it right?) so I think Id do good with some direction. Thanks."

alhamid said: "hello gene, since you are good at math and a fast learner, you should do great. Ameritrade is a online brokerage. Pretty much here is how it works: you deposit money in your account. You enter a stock symbol and you can buy and then sell through their interface. You have the right idea about stocks. You buy at one price and sell at another. Hopefully you make money! You just have to decide on what strategy you want to use."

Gene said: "Thanks, Is that all there is to it? So the only uncertain part is choosing the right stocks? As far as strategy goes are there any widely accepted disciplines of investing and if anyone knows of a good book, kinda like an "investor's bible" (every trade has one) please let me know, im definetly the kinda guy that does his research."

Gene said: "Just a couple more newbie question if you dont mind: When you own stock, can you sell it at anytime? Who are you selling to? And if you own shares of a stock, are you a sort of "co-owner' of the company? For example if I buy a large percentage of the company's shares, do I own the company?"

HappyHarry said: "Hi Gene and welcome, Yes you're definitely an owner when you own shares. Most shares that are sold these days are "voting stock". If you control enough of the stock you run the company. When you sell the stock, your hit sell on your brokerage account and a buyer is automatically found. That's the nice thing about electronic markets. There's almost always someone who will buy instantly. Concerning investment strategies, I can recommend two excellent books. 1) Peter Lynch, [url=http://www.amazon.com/exec/obidos/tg/detail/-/0671891634/qid=1118656909/sr=8-1/ref=pd_csp_1/104-9737714-0947132?v=glance&s=books&n=507846]Beating the Street[/url] 2) Hagstrom, [url=http://www.amazon.com/exec/obidos/tg/detail/-/0471177504/qid=1118656909/sr=8-4/ref=pd_csp_4/104-9737714-0947132?v=glance&s=books&n=507846]The Warren Buffett Way[/url] These are two easy to understand books that will give you a great overview of the subject. And feel free to ask us any questions you have."

Gene said: "Got em'! Thanks for the lead."