Stock Market Tips + Info! (Miscellaneous)
Hi Guys! Today, I'd like to share a couple tips about the Stock Market. Although, I have yet to invest in the stock market myself, I have done quite a bit of research. At school, I'm President of our FBLA club, and there we use a stock market stimulator called the SMG Stock Market Foundation. I found it to be a great platform with amazing resources and videos to learn about the stock market and how it works. The stimulator is also a great way to introduce students to the stock market in real life, students are given around $10,000 to start with and they can invest in companies of their choice. Students and teachers can watch the stock market growths and trends on the stimulator. Putting that aside, prepare yourselves for a wordy document filled with tips about the stock market!
As we all know, investing in the stock market is a great way to grow your wealth over time. However, with so many companies to choose from, it can be difficult to choose the right ones. Before we pour our money in different places, let's understand some fundamental concepts. and terms. So what are stocks? Stocks are shares of ownership in a company, and involves spreading your investments across various companies and industries to reduce risk. Another definition to keep in mind is market capitalization which is the total value of a company's outstanding shares.
Now let's examine the steps to choose stocks. When choosing stocks, there are several key factors. So here are my tried and tested tips:
1) Start by assessing a company’s financial health by looking at its financial statements and be wary of its profitability, revenue growth, and debt levels.
2) Consider the company’s position within its industry. Does the company have a competitive edge?
3) Evaluate the company’s potential for future growth. Is the company planning to or is innovating or expanding into new markets?
One thing to look out for is to ensure that the stock is fairly priced compared to its earnings (Price/Earnings ratio). Additionally, some companies pay dividends, which can provide a steady income stream. Hopefully, that gave you a starting point for stocks! :)
Before we close this week's post, I'd like to share some companies that I've researched. These companies are doing considerable well and are profitable. The list I've made also helps with what field is the company in. Diversity is big in stocks, your stock profile should have a variety of companies, that you're interested in passionate about. For me, that includes technology, health, car, and merchandise companies.
1. NVIDIA Corporation:
- Ticker Symbol: (NVDA)
- Price: Around $130.98 per share
- Area/Field: Technology
- Why Consider: NVIDIA has strong growth potentials in AI and data centers.
2. Eli Lilly and Co:
- Ticker Symbol: (LLY)
- Price: Around $885.01 per share
- Area/Field: Healthcare
- Why Consider: Eli Lilly specializes in the pharmaceutical industry, and is known for its innovation in treatments for diabetes, cancer, and autoimmune diseases.
3. Apple Inc.:
- Ticker Symbol: (AAPL)
- Price: Around $216.67 per share
- Area/Field: Technology
- Why Consider: Apple has a consistent revenue growth, and diversification into services and wearables which make it a solid investment.
4. Johnson & Johnson:
- Ticker Symbol: (JNJ)
- Price: Around $145.95 per share
- Area/Field: Healthcare
- Why Consider: Johnson & Johnson has a background in pharmaceuticals, medical devices, and consumer health products. It's known for its reliable products and steady dividends.
5. Amazon.com Inc.:
- Ticker Symbol: (AMZN)
- Price: Around $184.06 per share
- Area/Field: E-Commerce
- Why Consider: Amazon is popular in e-commerce and has significant growth potential in new markets like healthcare and clothing.
** Please note that the above share prices account for June 17, 2024...stock market prices can change and vary daily**
In case the question arises, what are ticker symbols? Ticker symbols are abbreviations used to identify publicly traded shares of a particular company's stock. The symbols don't need parentheses and are just letters, like the abbreviation of a state.
Closing: Investing in the stock market can be a rewarding but it's still a risk and requires careful planning and research. It's important to focus on companies with strong growth potentials so that you can build a diversified portfolio. It can be helpful to contact a financial advisor, and consult with them.
Disclaimer: Please note that above companies are merely suggestions. The Stock Market is highly unpredictable and changes on a day-to-day basis. You should build your stock portfolio based on your own choices and research.
Add comment
Comments