When I first started investing in stocks these questions puzzled me for a while. If you have the same questions, this post might help you.
How Is Stock Created?
Business needs capital for operation and growth. A common way to raise capital is to issue shares publicly. An investor can purchase shares and own a piece of the business. The business uses the investors’ money to grow its operations. When the business makes profits, it will issue dividends and the price of the shares might increase too, so investors are rewarded by receiving dividends or price appreciation.
How Are Stock Prices Determined?
After a business raises capital by issuing shares, the shares investors bought are also traded in a stock market, to allow investors to buy and sell different companies’ shares from each other. The price is determined by supply and demand. If the stock is popular and everyone wants to buy, buyers will push up the price. If the stock is unpopular and nobody wants to hold it, sellers are dumping the stock and the price of the stock will drop.
Why Do Stock Prices In A Whole Always Go Up In The Long Run?
Individual stock prices might raise or fall depending on the performance of the business, but the whole stock market tends to go up in the long run if the economy of that country is doing well. This is driven by the increase in productivity and earnings of the businesses within that economy.
If Stock Prices Always Go Up, Why So Many People Lose Money In Stocks?
One typical reason is insufficient diversification. If the investor only invests in a specific company or specific industry, there is a high chance that the company might not do well or the industry might not do well due to various reasons. Another reason is insufficient investment horizon. If investors invest at the market peak and the market falls 20% after that, the investors need sufficient time for the market to recover its loss. If investors are impatient to wait, a loss is inevitable.
当我开始投资的时候这几个问题困扰了我好久。如果你也要同样的疑惑，这篇文章可能可以帮助你。
股票是怎么变出来的？
一个企业需要资本才可以运营和发展。一个常用的集资的方法就是公开募股。投资者可以购买股票来得到企业的一部分所有权。企业利用投资者的资本来发展其运营。当企业盈利发展时，会发行股息，股票的价格也会增长，投资者会因此得到收益。
股票价格是怎么决定的？
当公司发行股票以后，投资者购买的股票也会在一个叫股市的市场上被交易。这样以便投资者可以和其他投资者交易不同公司的股票。股票价格由供求关系决定。如果一支股票很受欢迎，很多人要买，买家就会把价格推高。如果一支股票没人想要，卖家就会甩卖然后导致股票价格下降。
为什么股票整体长期会是上涨的呢？
单支股票价格可能会因为公司的表现涨或跌，可是整个股票市场长期来看，只要那个国家的经济发展健康，通常会是上涨的。主因是因为生产力的进步，公司的盈利增加。
既然股票都是涨的，为什么那么多人在股票上赔钱？
一个典型的原因是投资太过集中。如果投资者只押宝在几家公司或特别的一个行业都，有很高几率这些公司或是这个行业因为种种原因发展不如预期。另一个原因是投资期限不够长。如果是在市场高处开始投资，然后接下来股票跌了20%的话，投资者需要很长的时间才能等股市涨回来。如果没有耐心等的话，赔钱就很难避免了。
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