Progress:
Our past couple of lessons covered how publicly traded companies amass funds and how to trade stocks. Publicly traded companies are companies whose ownership distributes through shares of stock. A company’s shares get traded over stock exchanges or in other such markets between small and large investors alike. Think about publicly traded companies as a large pie of ownership. The owners keep most of the pie but sell off wedges which hold a small portion of the company to investors. The company then receives the money that the investors paid for the stock and redirects it towards expanding the business, following new ventures, or promoting its products/services. From this ordeal, the investor makes profits when the price of their stock increases past the price they paid for it, and the stock prices of a company increase with company success.
The next topic of discussion is stock trading. Nowadays, much of the shares trade via online markets. The procedure to buy an online stock is simple. First, you need to establish a trade account with the stockbroker of your choice. These brokers are groups who buy and sell securities on a stock exchange for their clientele. Once you have an account, researching the stocks you want to buy should come next. Depending on the different macroeconomics at play and the supply & demand of a company, shares will range in success. Doing research is one way to minimize your chances of loss. Thirdly, select the number of shares you want to purchase and your stock order type. For my own research, I referred to NerdWallet for their spreadsheet on the different stock orders. Once you complete that step, you have successfully purchased your first online stock. Remember, never put money into the stock market that you are not willing to lose.
Learning Center:
My In-depth Project has revolved around the business world, and more specifically, stock trading. Over the past five months, I have been learning alongside my father/mentor about the different variables that can influence stock exchanges and prices. A few days ago, I planned to present my knowledge in a PowerPoint format in front of a small crowd at my table in the MPR. However, I realized only after the advice of Ms. Mulder that doing an online form of presentation defeated the purpose of doing the In-depth Night in person. My new plan is to heed the advice of Ms. Mulder once more and instead perform a business seminar at my station about how stock markets work and what their purpose is. My blog posts will be on my laptop while I present most of my learning through discussion and diagrams on a whiteboard.
With my business presentation, I am hoping to capture the elements of a professional business seminar at my Learning Center. On my part, I will need to perform with extreme confidence and proficiency if I will pull it off, as business forums need to be concise, accurate, and informative. My father and I will be continuing our lessons during the last few weeks before In-depth Night to prepare myself. We will be focusing on subjects that will reassure my knowledge about stock exchanges and trading.
Resources:
- https://www.stockbrokers.com/guides/best-brokers-canada
- NerdWallet
- https://www.bmo.com/main/personal/investments/online-investing/investorline/self-directed/