Stocks is the name given to the valuable documents given to the shareholders by the equity capital companies to document their shares and partnerships. In other words, it is also seen as one of the equivalent parts of a company's capital. Stocks also represent an ownership or partnership.
Stocks do not have a standard return and their value varies according to the company's balance sheet earnings and investment decisions. Institutions that can issue stocks are joint stock companies, limited partnership companies whose capital is divided into shares and institutions established by special law. Stocks, which are the most traded investment instruments of the stock market, are therefore very important for both investors and companies.
Investors usually buy stocks when prices are falling and during stock market trading hours. It is important to buy stocks that are thought to increase in value and that can make a profit.
With the decisions made by following the market, the stock should be bought when it is thought that it will appreciate by dominating the peak and bottom points, and the stock should be sold when it is thought to lose value.
There are four steps to follow to buy stock, these steps are:
While following the market, the stock, which is determined according to the supply-demand balance and which is estimated to lose value by considering the factors causing sudden fluctuations, should be sold. A stock's bottom price is the point where the price is lowest. The peak price is the point where the price is highest.