Best Stocks To Buy

Most stock and share investors, and even a lot of traders don’t really understand the big picture when it comes to buying stocks and shares and what is available, so to start with here is a quick rundown.

The biggest markets in the world for stocks and shares is the USA, generally in the USA people refer to stocks while in the UK (England) they refer to shares, but they are the same thing, and people in most other countries generally refer to stocks, the use of the term shares seems to be hangover from old England

New York Stock Exchange - A place to buy great stocks and shares

Stocks and shares are bought and sold on stock exchanges, in the USA the 3 biggest are:

  • The New York Stock Exchange
  • The Nasdaq
  • The American Stock Exchange

Between these 3 exchanges there are approx 10,000 publicly traded companies listed, and out of these 10,000 about 3,000 have options as well.

Most of the biggest companies have options that you can trade as well, yiou may wounder why this is important, the simple reason is that there are many trading strategies that use stocks and options and this is very attractive to many traders, if you want to learn more about trading stocks and options checkout this stock trading course

So if you are serious about trading or investing stocks in the USA you should be looking for companies that are listed on one of these 3 exchanges.

But there are other exchanges and many more publicly traded companies, in fact I believe the total is around 40,000!, but most of these are what are called penny stocks or penny shares and are listed on minor exchanges often referred to as pink sheets or bulletin boards

A lot of traders, note I said TRADERS and not investors, like to trader the penny stocks and shares because of the large gains that can be obtained in short periods of time, if this is someting that interested you the best trading system guide is the Penny Stock Prophet

Many traders and investors will regard any stock or share that is below $5 in price as a penny stock and will not buy it, this maybe a good rule of thumb to follow but during the recent big down turns in the market many fine and solid companies found their stock price dipping below the $5 level so sometimes you should use your own common sense or you may miss out on a great bargin.

Many brokers have margin rules that come into play at the $5 price point which can trigger what are called margin calls, this is another reason why a lot of traders and in vestors avoid any stocks that are near the $5 price, a lot of selling can occur at that point as brokers issue margin calls to traders who don’t have sufficent equity in their account.

So for these reason penny stocks and shares are not regarded as being the best shares to buy, but you can trade them on a shart term basis if you wish.