Stock Market History Shows That Term Paper

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An upside gain can also be handled in that same manner, with a sell order placed above the trading price. This guarantees that the stock will automatically be sold as soon as it hits that price (if there is a buyer).

Another method of purchasing or selling shares that some investors use is called the option method. This method is used to obtain the right to purchase or sell shares at a certain price (the strike price). If an investor wishes to purchase a thousand shares of stock but does not wish to pay for them right away, the investor could purchase 10 options (100 shares per option) to buy the shares at a certain price.

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The closer the strike price is to the current price of the shares the higher the option will be.

Options can also be used to sell shares at a higher price than what they are currently trading at. The price of the option, again, depends on how close to the current trading price the share is.

Overall, my experiences in the stock market have taught me a lot about investing and various methods and investment vehicles available to the 'common man'. I look forward to a lifetime of investing and profiting from that acquired knowledge.

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