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To: WEBNATURAL who wrote (53)5/20/1999 12:26:00 PM
From: WEBNATURAL  Read Replies (1) | Respond to of 125
 
Good info from the SEC... sec.gov



To: WEBNATURAL who wrote (53)6/5/1999 6:32:00 AM
From: WEBNATURAL  Read Replies (1) | Respond to of 125
 
Basics

1. The basic function of the stock market is to provide capital resources for companies that is
seeking to expand their operations and finance their growth. You help these companies by
investing in their stocks and are rewarded when they are successful through appreciation of the
stock value. By investing you literally become a part owner of the company, therefore you should
only invest in companies that you might want to be in partnership.

2. Outstanding shares ... is the total amount of shares that a company have issued.

3. Public Float ... is the total amount of shares that is freely trading. Insiders usually have the
majority which is not traded freely.

4. Reverse Splits ... is when a company needs to reduce its outstanding shares. This in most
instances is negative to the price of the shares since the shareholder's holdings is reduced
drastically, sometimes as much as 1 for 100. Avoid potential reverse split if possible.

5. Market price is the going price at this moment which can fluctuate a lot. NEVER BUY AT
MARKET, unless you know the realtime quote.

6. Limit Order is the highest you are willing to pay for a stock, or the lowest you are willing to sell
the stock. Always place Limit orders for next day executions.

7. Spread ..... When you buy a stock you will always be paying the "asking price". When you sell
you will pay the "bid price". The difference between the two is the spread and is the profit for the
dealers.

8. Stock Symbol ... These are the identifying letters for trading a specific stock. eg AAPL for
Apple Computer.You will need symbols to research and track companies