Quote: (07-22-2016 03:20 PM)TheDuncan Wrote:
Thanks for all the info guys, so you dont get money by owning a stock per say, its all about selling that stock for more money.
So for Apple or huge companys its not really ideal for someone with a low amount of money.
Lets say though I find a startup company and buy 20 shares for $1000 and in 5 years it becomes a huge company, that $1000 investment can become $100000, thats why people always like to say "man I wish I woulda bout stock in MS, Apple, Google" etc
Now the question is, where can you look for these start up companys and invest in the ones you might think will make it big?
So thats one way to make the "big bucks" but it seems there is luck involved in that option, what is a sure way to make money though, is it actually possible to go from $1000 to $100,000 in a decent amount of time? ie; not 30 years.
I hate the be the bearer of bad news, but you won't become a millionaire from investing in the stock market. If you're smart, you can make a extra money over the long term and beat out inflation.
The only people that get rich from the stock market are the insiders that manage other people's money.
Most of these start-ups that you're referring to have a private share structure set up before they go public. IE the venture capital guys, angel investors, founders, and other key people have an ownership stake in the start up.
When they go for an IPO, generally the group of people I mentioned earlier will own 90% of the outstanding stock. The remaining 10% of the shares are then made available to the general public.
Microsoft, for example, had their IPO in 1986 at a price of $28 a share.
$28 was a lot of money back then. However if you held that stock till 2016 you should now have 432 shares at a value of $ 24,148.08! Microsoft has had several stock splits since 1986. That means in order to keep their share price competitive they gave you more shares over time! The opposite of this does occur so and is generally a bad thing. This isn't always the case however.
There are certain websites out there that let you get in on early start ups like this. angel.co is one that comes to mind.
Bear in mind that you aren't investing in the public stock market yet. You are investing in a private company and anything at that point goes. Read agreements over carefully.
The trick is getting into growth markets before they take off. However, there aren't a lot right now. Check the stock market thread for some good debate on the subject.