By: Tom Priesmeyer
The exciting part is that with the advent of the internet, it is now very easy to access critical data to help you make hopefully smart, efficient, and profitable decisions with regard to your stock investments.
You can do your own research on public companies right online, anytime, day or night. You have access to all of a company’s data, to help you perform fundamental analysis, as well as technical analysis.
Fundamental analysis includes evaluating a company’s financial information, such as earnings, debt, profits, revenues, and the like. Technical analysis is the study of price charts.
Technical analysis is a perspective of a company based on charts. Most charts are based on the stock price, and can be as specific as minute by minute charts, and as general as a chart showing the last 20 years or more of stock prices.
There are literally hundreds of different criteria on companies that is analyzed by both professionals in the business, as well as private investors looking to make money in the market.
There is software that combines much of this criteria, and shows signals for buying, and selling when this combination of predetermined, specific criteria is met.
Also, you have the ability to purchase stock much more quickly, and for greatly discounted commissions compared to what was available even a few decades ago.
No longer is it necessary to hold paper stock certificates, or is it needed to bother with excruciatingly slow snail mail to fill out forms, and transmit payments to buy stock, and provide other paperwork.
There are some exceptions to this rule, but if so, it is usually only for the initial paperwork, and transactions, and then the subsequent communications can be done over the internet. The Basics
A company must offer a portion of it’s company to the public in order to be traded, or have stock bought or sold on it. This is called going public. It is initiated by an Initial Public Offering, otherwise known as an IPO. An Initial Public Offering is also known as an IPO.
Why would a company want to do this? Companies go public in order to raise capital or funds. They use these funds for various purposes, such as to pay down debt, to make capital improvements, buy equipment, or to expand operations.
Going public is also another avenue for making money for the principals or management of the company. By owning stock in their own company, they can participate in it’s success when the price of the stock goes up. They are also, of course, subject to losing money if the stock price dips.
Other reasons to offer stock might include, to increase research and development, to hire employees, to start or increase an online presence, or any of many different reasons that are determined to improve the firm in one way or another.