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What happens when more people buy stock than sell?
If there are more people buying a stock than people selling it, the price goes up with the demand. If more people are selling than there are people buying a stock, that’s a sign that the company is unfavorable to own and the stock price drops.
Why do stock prices change?
That’s why stock prices are constantly changing. If more people are selling (and therefore trying to get rid of) a stock than those buying it, the stock price will drop. If more people want to buy a stock than people selling it, the stock price will rise. Stock exchanges bring all these investors together, so that trades happen in a central and regulated place.
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What is the financial industry?
In a nutshell, the financial industry is all about managing money: investing it, growing it, saving it and ultimately spending it. The stock market is at the centre of all this, where people (investors) and businesses meet to make transactions and respectively manage their money.
Why was money created?
Money was created out of a need to trade goods and services between one another. People always have needs. They need food to eat, clothes to wear, and shiny sports cars to…look cool. OK, some of our “needs” are more like “wants”. But either way, people look for ways to satisfy their demands.
Is TD Ameritrade a brokerage?
TD Ameritrade is one of the most popular online brokerages out there. They offer a variety of trading services and research tools. Now a part of the zero commission trading club, they won’t charge you fees for buying and selling stocks and ETFs!
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What to buy? With thousands of companies trading on public exchanges, how do you know which stocks to add to your portfolio?
