Guide to Investing in Stocks: Key Insights and Strategies
This comprehensive guide provides essential insights into stock market investing, including how to buy and sell shares, key stocks to consider in 2018, and the benefits of investing in major companies like Bank of America, CUBI, and Applied Materials. Whether you're a beginner or experienced investor, learn strategies to grow your portfolio with top-performing stocks and understand market dynamics effectively.
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Guide to Investing in Stocks
The stock market is a platform where investors can buy and sell shares of publicly traded companies. Over 6,000 companies are listed across various exchanges, offering diverse investment opportunities. When you purchase stock, you own a fraction of that company. Companies issue shares during an initial public offering (IPO) to raise capital, setting the share price based on their valuation and the number of shares issued.
The funds raised through IPOs provide the company with capital for growth, while shares continue to trade on the stock exchange. This ongoing trading allows investors to buy and sell shares without affecting the company's capital directly. Only the IPO sale funds go directly to the company.
Steps to Purchase Stocks
Research potential companies to identify those with consistent growth patterns.
Prioritize investing in firms showing steady or increasing performance over recent years.
If you're unsure about picking stocks, consulting a broker is advisable. To do so, you need to open a brokerage account, transfer funds from your bank, and place orders through your broker. The broker submits your buy or sell order to the stock exchange, which matches it with the best available offer. Once matched, your order is executed, and you'll receive a confirmation receipt.
How to Sell Stocks
Place a sell order with your broker.
Your broker transmits the order to the stock exchange.
The exchange finds a suitable buyer.
Your shares are sold at your specified price.
Finally, the shares are deducted from your account, completing the sale.
Top Stocks to Consider for Investment in 2018
Applied Materials (AMAT)
Bank of America
Customers Bancorp (CUBI)
Berkshire Hathaway
Charles Schwab
Why Invest in Bank of America?
As the second-largest bank globally, Bank of America ranks among the top stocks for 2018.
Financial gains increase with higher interest rates, boosting profits.
Strong performance and anticipated growth driven by favorable policies make it a prime pick.
Benefits of Investing in Customers Bancorp (CUBI)
This digital-focused bank is rapidly expanding, with annual revenues around $900 million.
Experts project its stock price could rise from $4 to around $39 by year's end, indicating significant growth potential.
Advantages of Investing in Applied Materials
Applied Materials (AMAT) is a leading wafer fabrication firm showing robust growth momentum.
Its stock has surged 320% over the past five years, attracting long-term investors.
Recent quarterly growth rates exceed 35%, with indicators pointing towards continued expansion, making it a strong investment choice.
