Shorting Stocks

When you short a stock you are betting that the price of the stock will go down.   You do this by borrowing shares of stock from your broker and sell it.  The money goes into your brokerage account and you later buy back the stocks you owe, called covering.  If you price of the stock… [Continue Reading]

shorting-stocks

Buying Stocks

The first question most beginners to the stock market have involves buying stocks.  Let’s take a look at two ways you can buy stocks – brokerages and DRIPs/DIPs. Finding a broker The most popular way of buying stocks involves using a brokerage.  There are two types of brokerages, full service and discount.  Full service brokerages… [Continue Reading]

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Stock Basics

What is a stock? Stocks represent ownership in a company. The amount of ownership depends on the number of shares owned versus the number of issued shares. For example, if a company issued 100 shares of stock and you buy 5 shares of stock in that company, you own 5% of the company. As a… [Continue Reading]

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