Can you get rich quick in the stock market? **Not usually. Research info is available to large numbers.
*Insider Trading -using info no one else has to make money on stocks -”hot tips” -illegal
*Securities Exchange Commission (SEC) -all federal securities laws -investigates all dealing between corporations -made to avoid another stock market crash like the 1929 crash. -all available info must be given to investors
**States also have laws concerning stocks.
*Stock and Bond Markets 70% of market value of all stocks listed in the U.S. NYSE (New York) AMEX(New York) Midwest Stock Exchange (Chicago)
*Bond Markets NASDAQ--Nat’l Assoc. of SecuritiesDealers Automated Quotations. -over the counter -not traded at a specific place -lesser known companies *Bond Markets -NYSE Bond Market -AMEX Bond Market -Gov’t Bonds
**When saving and investing, it is important to diversify. Diversification- -spreading out your money into safe, moderate, and risky investments. - -spreading out your investments into different industries.
Mutual Funds -an investment company that pools your money with many other investors’ money to buy stocks, bonds, and other investments. Advantages -pros handle your money -loss in one place but gain in another Disadvantage--not insured