The stock market first starts by selling shares. The company sells shares to raise money. When the share value drops, people become aggressive to buy some shares because they prefer to buy shares in a lower price. Then people try to predict if the company is worth to buy shares, even though it is hard to predict if the value of the shares would increase or decrease. Since it's hard to predict, some people lose money and some earns.
First, to understand the stock market, you have to know the difference between 'stock' and 'share'. Stock is a general term of saying any random shares. For example, if you say, "I own some stock", you mean that you own shares of one or more companies. On the other hand, share is a term of a share with a specific company. Next, a dividend is a sum of money that the company pays the shareholders out of the company's profit. There are a lot of world markets, but to tell you famous ones, there is New York stock exchange, NASDAQ, London stock exchange group, etc. A ticker symbol is a symbol made up of alphabets, which is used to distinguish companies. Since investing is hard, there is a thing called mutual fund, which is a investing program funded by shareholders and it's professionally managed. The major thing that affects the stock market is the ratio between the supply and demand. If the supply is huge, but demand is tiny, the shares are most likely to drop. But, if there is a huge demand, but a tiny supply, then it's most likely to go up. The pros of stock markets is that you can earn a lot of money if you invest really well, but if you fail, then you might lose a lot of money.
The first 3 companies that I invested in are Samsung electronics, Hyundai motors, and Amore Pacific.
Reason why I invested in Samsung electronics --> 1. Even though Samsung had the Galaxy Note 7 crisis, Samsung is going to release the Galaxy S8, which follows the Galaxy S7, is predicted to have a lot of sales as the Samsung Galaxy S7. /// 2. Samsung has not only the Note and S series, but it has a lot of different series such as the A and J series for people who can’t afford an expensive phone like the Note and S series.
Reason why I invested in Hyundai motors.--> 1. Hyundai is making a slow, but steady progress of their quality of everything they made. /// 2. Even though 2020 is far away, Hyundai is planning to launch 6 great cars by then, which would increase sales of Hyundai.
Reason why I invested in Amore Pacific -->1. Amorepacific is the top brand for cosmetics and it is increasing its sale steeply for several years. /// 2. Because the company’s sales didn’t decrease, it is a very reliable company.
Well my companies were very very risky. I was aware of that when I first bought it. Half way through, I had Samsung, Amore pacific, Accenture, and Hyundai motors. They all did so well that I got 6% profit in the middle. But when I bought Tesla, Tesla dropped at a fast rate and soon after, Hyundai and Amore pacific followed that routine. Hyundai recovered from the 10% loss but Amore pacific and Tesla are still in the -10%'s. Now, Samsung and Accenture are the best.If I did this project right now again, I would buy all right now. Since I know what Samsung and Hyundai is going to do clearly, I can be confident about those two. For Tesla, I would buy some, but not a lot. But, Amore pacific and Accenture were my very stable stocks, so I would buy quite a few. If I would continue, I would sell Samsung because it was risky in the middle and I don't want it to drop again. By this project, I learned that this project would be really good for our future, because I was able to learn what the market does, how the shares are traded, etc. But the one that I learned the best was that investing is really hard.