The Stock Market

Do you know that the New York Stock Exchange started out only on a little pathway in front of a church on the East side of Manhattan two hundred years ago! At the time it started out there was no paper money or even stocks, but instead they traded silver for documents stating they owned shares that were being delivered by ships everyday, this is how it all began!

Have you ever said 'damn I wish I owned that company', well guess what? You can actually own a share in that company, how? First you need to get a broker, when you find one you like then you tell him that you want to buy a share in the company (the one you have your eye on). You tell the broker how much money you have to use and he will tell you how much each share is, he will also tell you how much he will charge you for his service and the remainder will be used to buy shares.

Here is an example:
You have $350
Broker fee $50
Each share is $20
You can buy 15 shares into that company

You give the broker your money and he transfers ownership to you, he then will send a message to one of his employees on the floor over at the Stock Exchange, he tells him to buy the stocks for you. The floor broker will buy the stocks, report it onto one of the many computers at the Stock Exchange and then track it back to the brokerage house. Your broker will keep a record of the stock you own instead of sending you a paper certificate.

If you decide you want to sell your stock your broker will sell it, deduct his commission and give you the rest of the money. Don't worry about your broker running off with your money, the government has put many organizations and commissions to keep him honest. One major organization is SEC (Securities Exchange Commission)

~Cat