Guide to Stock Market Investments
Explore the essentials of investing in stocks, including how to buy and sell shares, top stock picks for 2018, and the benefits of investing in companies like Bank of America, CUBI, and Applied Materials. This guide provides practical steps and strategic insights for both beginners and experienced investors looking to grow their portfolio effectively.
Understanding Stock Market Investments
The stock exchange is a marketplace where investors buy and sell shares of publicly traded companies. Over 6,000 companies are listed across various stock exchanges worldwide. When you purchase a stock, you're buying a stake in that business. Companies issue shares through an initial public offering (IPO) to raise capital, setting the share price based on company valuation and the number of shares issued.
The company retains the funds from the IPO to support growth, while shares trade on stock exchanges. Ongoing trading involves buying and selling among investors, but the company itself only receives capital during the IPO.
Steps to Purchase Stocks
Research market trends and identify companies with steady growth for potential investment.
Choose shares of companies with consistent performance over recent years.
If you're unsure about selecting stocks or calculating potential profits, consulting a broker is advisable.
Open a brokerage account to start trading.
Transfer funds from your bank account to your brokerage account.
Place your buy order with your broker, who will process it on the stock exchange.
The exchange matches your order with suitable sellers based on your price preference.
Once a match is found, your purchase is completed, and you receive a confirmation as proof of your transaction.
How to Sell Stocks
To sell, submit a sell order through your broker.
Your broker sends this order to the stock exchange.
The exchange finds the best buyer for your shares.
The sale executes at your specified selling price.
Shares are deducted from your account once the transaction completes.
Top Stocks to Consider in 2018
Applied Materials (AMAT)
Bank of America
Customers Bancorp (CUBI)
Berkshire Hathaway
Charles Schwab
Citigroup
Cubic
Delphi
DXC Technology
The Goldfield Corp.
Why Invest in Bank of America
As the world's second-largest bank, Bank of America presents a solid investment opportunity.
Financial gains increase with rising interest rates, boosting stock value.
Projected profits amid tax reforms and rate hikes make it a promising pick for 2018.
Advantages of Investing in Customers Bancorp (CUBI)
Fast-growing digital banking sector makes CUBI an attractive stock for 2018.
With around $900 million in revenue, analysts forecast the stock could reach $4 per share, potentially rising to $39 by year-end.
Growth Potential of Applied Materials
As a leading wafer fabrication firm, Applied Materials has shown remarkable growth, with stock prices rising 320% over five years.
Recent quarterly growth and an annual estimate of 35.5% suggest strong future prospects, making it a solid long-term investment choice.
