A Guide to the Stock Market for Beginner Investors

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Are you interested in learning how to invest in stocks? Fifty-six percent of Americans report that they own stock. Whether you’re new to investing or have been doing it for years, getting into the stock market can help you build wealth.

Before you begin buying stocks, you need to learn some basics about how it all works. Read on to learn about the stock market for beginner investors!

Trading Hours

The two most popular stock exchanges in the United States are the New York Stock Exchange (NYSE) and the NASDAQ. As many as one out of five people were buying or selling shares of stock daily during the global pandemic brought about by COVID-19. 

The NYSE and NASDAQ are open from 9:30 am EST to 4:00 pm EST on most weekdays. There are certain holidays where the exchanges are closed for trading. These include days like the 4th of July, Thanksgiving, and Christmas Day. 

Ticker Symbols

Think of a company’s ticker symbol as its unique identification code for the stock market. For example, a company like Apple uses the ticker symbol AAPL. 

A company that is traded on an exchange is a public company. A company goes public as a form of equity financing. The first day that a company offers its stock for sale is an initial public offering or IPO. 

A company’s ticker symbol is how it will be referred to when orders are executed on your behalf in the market. You will become more familiar with a company’s ticker symbol as you gain experience with stock market investing.

Choosing a Broker

Individual investors place orders to buy and sell stock by using the services of a brokerage company. In exchange for those services, a broker usually charges a trading fee for an order. This is sometimes expressed as a flat rate or a percentage of the dollar amount of your trade.

Many different brokerages are based in the United States and place thousands of trades each day. Some of the most popular names include Charles Schwab, TD Ameritrade or Robinhood.

Learn about the pros, cons, and reputation of a brokerage firm before you deposit with one.

Deciding When and What to Invest In

Learn about reputable sources for information so that you can use them as a kind of investing guide for you. A great way to learn about the stock market is by reading annual reports and learning basic financial analysis.

When it comes to learning about individual companies and stock ticker symbols, you’ll want to use a stock research tool like Ignite.

This can help you get a real sense of where a company is now and where it is headed in the future. When you identify companies that you want to invest in, learn their ticker symbol and the value of each share.

Always remember that you should consider your risk tolerance before investing.

Beginner Investors Can Make Money Too

Even beginner investors can make money and build wealth in the stock market. It’s not just a place where people with experience can do it. 

By learning the basics and building on your wins and losses as an investor, you can be successful in the market. 

At Solomon RC Ali Corporation, we have two products relative to beginner investors. Solomon’s Picks is a service which provides input on undervalued stocks/companies who are up and coming. Ignite is a stocks research platform which allows investors to perform due diligence and understand companies before investing in them.