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Rosemary Said:

What effect will the latest statement on potential terrorist attack have on the stock market?

We Answered:

Negligible. Homeland Security is constantly issuing these warnings. Basically, the market has already factored in the likelihood of an attack into current prices.

Even the ACTUAL attacks in Britain recently had little impact on their markets. The western world is getting used to them.

Daisy Said:

How to understand the stock market?

We Answered:

The stock market is like a giant computerized auction where buyers and seller trade shares of companies between themselves.

Prices of stocks change all the time because of the rule that makes the price of the last trade for any given stock the latest price for all shares of that stock.

You can learn more about it here:

Helen Said:

Why does stocks open in a strong decline after a bad news if the stock market was closed?

We Answered:

The Stock Market works like an auction. And the current price of the stock is simply the price of its latest transaction.

Just because people bought the stock at $30 last time doesn't mean that they will buy it at the same price next time. In an auction, the price keeps going down until a willing buyer is found. And the price at which this stock is sold then becomes the current price of the stock.

A gap is created when no willing buyers can be found at the last transaction price. And sellers keep bringing down their asking price until a willing buyer is found. The price of the stock in this latest transaction then becomes the new price of the stock.

Tim Said:

Does anyone know about the stock market?

We Answered:

the dirty dozen of investing:
1. if you don't know how to get a quote then don't consider investing a cent until you do
2. the market goes up and down all the time
3. look for trends that go up over a long period of time
4. if you can not afford to lose the money then invest in CD's
5. yes some people get rich most go broke
6. my guess is the majority of day traders go broke and lose everything although they will make mones on some stocks, they will lose on others.
7. take out a subscription to the motley fool they give great tips and advice. sign up their trial period (30 days?) and they will continue to send you hints after the trial is over.
8. brokers make money on the sale and the purchase of stock so if your broker is constantly selling and buying you might have to take a second look to make sure he/she is doing the right thing for you.
9. Pick 10 stocks and set up an excel spread sheet. then pretend that you have invested 10,000 in each one of them. Track the stocks for a period of time and see you did.
10. you must understand dividends, splits, etc to play the market.
11 .you must also understand the tax consequences of selling stock .
12 if anyone really knew how to play the market they would not share it with you, they would keep the info themselves.

Dorothy Said:

How does the stock market work? (specific question about)?

We Answered:

Well what you need to know from a disgruntled investor is roughly a trillion dollars was just lost in the latest stock market crash and most wont get squat back. Your Ad Here

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