1)Lets say a stock costs 70, you bough 10 shares of that stock so now you payed 700.Right now your stock is worth 700$. Lets say it increased by 14.2%. So now it costs 800$, right?
BASICALLY YES, IF YOU BUY A SHARE FOR WHATEVER THE PRICE OF IT IS (OR SEVERAL SHARES) THEN WHEN THE VALUE OF THE SHARE GOES UP, IF YOU WERE TO SELL IT, YOU WOULD SELL IT FOR THAT NEW VALUE AND YOU WOULD HAVE MADE A PROFIT.
2)Do you actually buy stocks from people or from the company itself? NEW SHARES WOULD BE BOUGHT FROM THE COMPANY. IF THE COMPANY IS NOT PUTTING OUT ANY SHARES YOU WOULD BE BUYING THEM FROM PEOPLE WHO OWN THE SHARES AND WANT TO SELL THEM.
3)If you want to sell a stock why would people buy it from you if they can actually buy stocks from the company itself? For example if a stock costs only 1$ and lets say you have 100 shares of it, so now you have 100$ that you want to sell. Why would people buy it from you if they can buy 100 shares from the company?
THE COMPANY DOES NOT HAVE AN UNLIMITED AMOUNT OF SHARES FOR SALE... THAT COULD NOT WORK AS THE COMPANY IS NOT WORTH AN UNLIMITED AMOUNT.
1. Its VALUE is now 800. Your cost is still 700.
2. Stocks are bought and sold through stockbbrokers, who trade on the stock market, Normally those shares you'd buy are ones other people are selling. When someone puts in an order to buy, the cheapest units currently available are the ones bought. When you buy or sell, you can specify the price you're willing to pay or sell for, or just say to sell for whatever the latest price is.
Note that this is a very simplified explanation of process.
(1) YES.
(2) No, you cannot buy stock from the company, you buy from the market through a brokerage. What you are buying is called 'public flow'. That has no direct impact on the company.
(3) Same as (2).
Question (1) - yes, right enough.
Questions (2) and (3) - stocks are bought and sold through licensed stock brokers.
I have very little information about stocks and the stock market. Your help would be appreciated. Here are my questions:
1)Lets say a stock costs 70, you bough 10 shares of that stock so now you payed 700.Right now your stock is worth 700$. Lets say it increased by 14.2%. So now it costs 800$, right?
2)Do you actually buy stocks from people or from the company itself?
3)If you want to sell a stock why would people buy it from you if they can actually buy stocks from the company itself? For example if a stock costs only 1$ and lets say you have 100 shares of it, so now you have 100$ that you want to sell. Why would people buy it from you if they can buy 100 shares from the company?
