Why do Company CEO's or other high company positions buy stock on the open market?
368846
That is a good question since they have so many stock options, that it would choke a cow. \n\nOne possible reason is that they want their name to appear on the list of insider trades so that people will think the stock of the company is undervalued and buy it to drive up the price so that they can exercise their options and make more money.  I admit that this logic is a little devious, but then again these are devious people we are talking about. \n\nAnother reason is that they think the stock is a good buy. OK, the possibility does exist. \n\nAnother reason is that they are trying to increase their holdings in the company as part of a power struggle for control of the company. This would possibly be the case in a company with only a few million shares outstanding.  \n\nAnother reason would be to put the squeeze on shorts. The classic example of this was Alan Ryan of Stutz Motor Car Company. Members of the New York Stock exchange had shorted the stock of Stutz Motor Car in 1920. Ryan controlled the company. He bought all the available outstanding stock of the company so that the shorts could not cover their positions. He had them by the balls. Then the exchange intervened because their members were in jeopardy of being wiped out and halted trading in Stutz.
26034
"Trading account" is probably referring to stock trading account.  There are lots of places to open a stock trading account, for instance etrade.  The point is to buy and sell shares of company stock (partial ownership in companies).  It can be a gamble, so you better do a fair amount of research before throwing down money on any specific stock.
1035920
advantages:  \n\nif the companies whose stock you own make more money than generally the price of the stock goes up. \n\nsometimes companies whose stock you own will raise their dividend providing you with more money and causing the price of the stock to rise. \n\nIn the past the average increase in stock values has outperformed the yields in debt instruments.\n\nThere is the chance that by buying a particular stock you could hit a real winner, as buying MSFT during the early 80's or INTC or CSCO. \n\nInvestments in common stocks are very liquid. They can normally be liquidated at a moments notice unlike real estate investments.\n\nOne can invest in common stocks with very little capital. \n\nDisadvantages:\n\nThe companies one invests in may go bankrupt and  one may loose all of the investment\n\nCommon stock investments are subject to market fluctuations that have nothing to do with the particular stocks but instead with other events such as panics. \n\nInvestments in common stocks are effected by government policy which may adversely effect the value of the stocks, such as wage price controls, price caps, interest rate increases, tax increases, etc. \n\nInvestments in a particular company may be impacted by changes in technology.  \n\nInvestments in a particular company may be impacted by management ineptitude, incompetence, and illegal activity
133584
Some may be oughtright frauds where no such stock exists.  Some may be frauds wherein a licensed broker wants you to invest with him and it's all a big boiler room scam.  Some may be actual listed companies that are not following SEC rules on truthfully reporting their finances.  \n\nBut all are attempts to get you to part with your money.
382324
A bull run on the stock exchange is a time when the investors create a situation that they buy shares at lower price and the buying activity is more than the selling side. In such case the prices will go on and then a reasonable rise in price means a good return for the investor. Such upswing is the Bull Market..... the Bull uses his horn to rise the stock index.\n\nOn the other hand there might be heavy selling and out pass the buying. Higher no of sellers will mean a competition to sell shares. So with more stocks available to buy the buyer will want a still lesser price. So the prices will keep falling and finally a time will come where is little to sell. At such lower prices investors may buy because that is the lowest price at which they can buy. Thus it is like a bear hugging the prey when it is on free fall. Thus the Bear run...\n\nLong story short.... Bulls.... upswing...... Bears.... downwards..\n\nHappy enjoying the bourse
318979
the best way to buy shares of your favorite stock is go directly through the company. The only catch is that some companies do not offer this option because an investment banking house such as Morgan Stanley, may make a market or sell the stock on the open market, for the company. Another way to say it is that the company you may want to buy shares in may not handle their own stock. Look on the company website under investor relations for an answer to that. If they dont offer stock, then find a low cost, internet based stock trading company such as ameritrade etc. But, buyer beware, just cause you know the company, doesnt mean you know the stock. Trust me!
19032
A "stock option" is a set price for a group of stocks in a company.  Usually given to employees, sometimes to investors directly realted to a company.  With a stock option, you can get say a group of 100 stocks at an option to purchase for $5 each.  The option matures at some point in time where you can actually make this purchase at said price.  But, there is a possibility that the market price for the stock could be $100 at that time.  You just made $95 per stock on the purchase.  A real incentive for employees to work harder to make their company worth more in the market place.
336100
I am assuming you are referring to the purchase of the underlying equity by a larger, more established company. The reason for this could be two-fold. There could be restrictions in place regarding the institutional ownership of the stock and subsequent purchases made there-in. Another reason, and more likely, is the fact of liquidity. Garnering a large number of shares of an illiquid stock could single-handedly manipulate the given equity leading to SEC investigations and such. And by investing in stages (known predominatly as "scaling into a position", they could evaluate on the go. For instance, the company that is being bought could have some current hindrances surrounding it. By scaling in, you can watch as some of the shady situations resolve themselves and you become more comfortable with the current share price.
155802
If you have stock options, you have the right to purchase stock at a set price. The price you'll pay is set by the Board of Directors (usually). If the company is pre-IPO, the price may be quite low. The hope is that when the company goes public, your stock will be worth more than the option price.\n\nThe vesting schedule sets forth the time and amount of stock you can purchase.
721639
It depends on how "hot" the IPO is and how many shares are out there.  Typically you have to be a client of one of the brokerage firms underwriting the offering.  They are the ones that are actually financing the offering.  If the IPO is for a really hot company or sector, and it's almost certain to go way up, those shares get allotted to the brokerage firm's very best customers.  These are usually going to be institutional buyers like pension funds, mutual funds and hedge funds.  A small amount of stock is available for the general public, but it's very hard to get in on a good one.  If you are a small investor and your broker calls you up to tell you he can get you all the shares you want of an upcoming IPO - run for the hills, that means nobody else wants it.\n\nIPOs are considered speculative investments because there is no trading history for the stock, so if you're a new investor, you may get shut out of offerings for suitability reasons too.
888798
Share prices rise when there is an increased demand for the shares.  That is people are willing to pay more money for them. If a comany reports that their earnings have increased more than was expected, that generally increases the demand for the shares and prices rise.  \n\nSometimes the price movement is due to technical factors.  If the price of a stock has fallen a significant amount, people might think it is now a bargain and begin wanting to buy it, driving the price higher, even though there is no other apparent reason for the price increase. The opposit is also true.  \n\nThe best way to consistantly make money, is to buy stocks with solid fundamental value that are not overpriced and then to hold on to them and not sell them after the price has risen a few points and not to panic and sell them if the price drops a few points. \n\n The markets tend to run in cycles. And many people tend to buy stocks at the top of the cycle when they are expensive and then to panic and sell them at the bottom of the cycle when they are cheap.  Others tend to buy speculative stocks hoping to make a fast buck, but usually wind up loosing a buck real fast.
79156
Check out Peter Lynch's "Beating the Street" -- It's a great book.  Basically, when you are buying a stock, you are buying part ownership of a company.  Lynch recommends that you keep this idea in mind, and put your money in companies that you know to be high quality.  Are you a computer geek?  If so, you'll probably know which Internet stocks are more promising than the average person, etc.
938993
It could be. That is a very subjective question. Some people buy stocks without ever seeing an annual report or 10-k. What kind of analysis are you doing? What information are you looking for? In general, do as much research as you think you need to make sure this is an investment you're willing to make.
1038537
There was 1000 shares available for sale when you entered the ordered and that amount was filled.  15 min. later 1100 more became available.   There has to be a seller willing to sell for you to purchase.  This is especially true on orders placed at a particular price but it also happens on market orders.  A portion of the order will be filled at a particular price and other portions at other prices.
846842
This happnds to companies that have a low vaule on the stock price but, high asset value. This happended to my company (Disney) a while back when Comcast tried to take us over. Bascilly it means they come in and buy up all the avaialbel stock to have an ownership and then they control the board and it's decsions which the board could sell the whole company for the price they are offering. In the Disney case we fought it off ad won they did not take us over.\n\nSometimes companies offer a leverged buyout like US Air is doing to Delta right now. They see vaule in the compnay and offer a premium to all stock holders above the market price hopeing to buy it out and merge and that is what hapoends most of the time. Hostile take overs don't happen often but, when they do look for lots of media coverage. Look for some article about Disney and Comcast.
313724
Hi kid,\n\nI presume you are a kid. Listen the topic of Stock Exchange can be described in a small paragraph, and also elaborated in many pages. I recommend you read a couple of good books on the subject. Do some research on the Internet, I have enclosed a couple of websites for your perusal.\n\nBasically it is a centralized place where companies list themselves. To get a listing on the Stock Exchange companies have to fulfill certain criteria and rules set by the concerned government.\n\nOnce the company is listed the stocks and shares of that company can be bought and sold in the open or free market. Depending on the lucrative nature of the company the stocks of that company go up in the Stock Exchange as obviously the demand also go up. Conversely the stock will take a plunge or nose dive if people lose confidence in the company.\n\nIn addition to this there are other external factors. For example the share price of say TAMI FLU is going up  because of the fear of a bird flu pandemic. This is an external factor. Although there is no real demand now, the fear of an impending disease is driving up the price of this product because it might one day be a life saver and hence it is a good company to invest in.\n\nAre u getting the drift.\n\nIf you are still having problems, ask again or send me an email.
512232
If the stock price is cheap, then a normal transaction of, say, 10000$ requires more shares so the volume looks high.  Contrast this to Berkshire, where people might trade just 1 share at a time, so the volume every day is low.