Newbie stock trader

[lew26]

I just opned a account at a trading broker i guess what you call it, ameritrade, etrade the online trading companies, etc.

I haven't made a trade yet, and was wondering what it meant when let say a stock was as +5.19 and let say i buy 100 shares and within a three period it went up to +5.69.

1) What would 100 shares cost me, excluding the commission which i get 100 commission free trades.
2) How would would i have made in those these days?
3) i hope my questions makes sense i am guessing this is how it work, when the share rises so does the cost of the shared you purchased so when you sell it you would have made profic?

thanks,
Will

[rkahn]

If I understand correctly, you purchase 100 shares @ $5.19. The stock then goes to $5.69 after three trading days.

1) Excluding commissions, you will pay $519 for the shares.
2) On paper (meaning before you sell and actually realize your gains), you would have made $50. If you decide to sell your shares at $5.69, you will make $50 less any commissions (which you'll have to pay since you used up your freebies).
3) As shares of companies are traded, the prices fluctuate. That's why you can buy it for $5.19 and it can be worth $5.69 in a few days. Keep in mind that it could also be worth $4.69 in a few days.

I recommend you visit Investopedia in order to better understand the market:
Stock Market Intro (http://investopedia.com/university/stocks/default.asp)

[wallstreetsedge]

forget investopedia, someone needs a calculator :fisheye:

[wallstreetsedge]

forget investopedia, someone needs a calculator :fisheye: