History has shown that investing in stocks is one of the easiest and most profitable ways to build wealth over the long-term. With a handful of notable exceptions, almost every member of the Forbes 400 list of the wealthiest people got there because they own a large block of shares in a public or private corporation. Although your beginning may be humble, this guide to investing in stocks will explain what stocks are, how you can make money from them, and much more.
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A 17th-century engraving depicting the Amsterdam Stock Exchange (Amsterdam's old bourse, a.k.a. Beurs van Hendrick de Keyser in Dutch), built by Hendrick de Keyser (c. 1612). The Amsterdam Stock Exchange was the world's first official (formal) stock exchange when it began trading the VOC's freely transferable securities, including bonds and shares of stock. How Much Is Us Stock Market Worth?
A few decades ago, most buyers and sellers were individual investors, such as wealthy businessmen, usually with long family histories to particular corporations. Over time, markets have become more "institutionalized"; buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds, investor groups, banks and various other financial institutions).
Thinkorswim, on the other hand, is a powerhouse designed for the advanced. This desktop application regularly racks up awards for its superior tools and features, things any other broker would charge a premium for — research reports, real-time data, charts, technical studies. Also included: customizable workspaces, extensive third-party research, a thriving trader chat room, and a fully functional mobile app.
The racial composition of stock market ownership shows households headed by whites are nearly four and six times as likely to directly own stocks than households headed by blacks and Hispanics respectively. As of 2011 the national rate of direct participation was 19.6%, for white households the participation rate was 24.5%, for black households it was 6.4% and for Hispanic households it was 4.3% Indirect participation in the form of 401k ownership shows a similar pattern with a national participation rate of 42.1%, a rate of 46.4% for white households, 31.7% for black households, and 25.8% for Hispanic households. Households headed by married couples participated at rates above the national averages with 25.6% participating directly and 53.4% participating indirectly through a retirement account. 14.7% of households headed by men participated in the market directly and 33.4% owned stock through a retirement account. 12.6% of female headed households directly owned stock and 28.7% owned stock indirectly.