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Shares are small pieces of a company. Shares can be bought by humans, companies, and mutual funds. When buying shares in a company, the buyer owns a small part of that company. The price of a share can be based on many different things. The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up. If there are more sellers than buyers, the price goes down.
Stock brokers and analysts[change | change source]
Some buyers trade shares in stocks through a stockbroker. A stockbroker is a person who buys or sell stocks for their customers. A stockbroker can also help customers make choices in stocks. Their advice is based on public information about the companies.
Advice from stockbrokers[change | change source]
Stockbrokers advise their clients on how to manage their stocks. Some of the advice they give is:
- BUY (good expectation - buy the stock)
- HOLD (neutral expectation - keep the stock)
- SELL (low expectation - sell the stock)
Stock markets in the world[change | change source]
- NYSE (New York Stock Exchange) - USA
- NASDAQ (stock market for mainly technology shares) - USA
- London Stock Exchange - UK
- LIBOR - London International Board of Trade