Julia: Would you tell me something about stock?
Mike: Sure, what do you want me to start with?
Julia: Uhh, you can start with the explanation of some terms like "a bull " and "a bear ".
Mike: OK. A bull is a situation in which share prices are rising.
Julia: What about a bear, then?
Mike: A bear is a situation in which share prices keep falling.
Julia: Oh, I see. But why the prices get rising or falling?
Mike: If there are more buyers, the price will rise. Otherwise, the price will be lower and lower.
Julia: How can we make money in the stock market?
Mike: If you believe the market will go up, you can buy in or hang on. If it turns out to be true, you can make your profit.
Julia: I heard that some people can earn money out of a bear market. How do they win in such a situation?
Mike: If you believe the market will fall down, you can sell out your shares and then buy back at a lower price. The price difference is your profit.
Julia: It sounds easy to make money from stock investment.
Mike: Not at all. When you really invest in stock market, you'll get involved into the whole world.
Julia: What do you mean by that?
Mike: To decide which share you'll buy in is quite hard sometimes. You have to consider the market tendency; the growth of the company and you'd better know something about technical analysis.
Julia: So boring it is. I'd better invest in some fixed interest fields.
Mike: Certainly you can. You won't suffer from the risks. But your wallet will suffer.
Julia: What should I do?
Mike: If you really want to invest in stock, perhaps you should find a broker.
Mike: Sure, what do you want me to start with?
Julia: Uhh, you can start with the explanation of some terms like "a bull " and "a bear ".
Mike: OK. A bull is a situation in which share prices are rising.
Julia: What about a bear, then?
Mike: A bear is a situation in which share prices keep falling.
Julia: Oh, I see. But why the prices get rising or falling?
Mike: If there are more buyers, the price will rise. Otherwise, the price will be lower and lower.
Julia: How can we make money in the stock market?
Mike: If you believe the market will go up, you can buy in or hang on. If it turns out to be true, you can make your profit.
Julia: I heard that some people can earn money out of a bear market. How do they win in such a situation?
Mike: If you believe the market will fall down, you can sell out your shares and then buy back at a lower price. The price difference is your profit.
Julia: It sounds easy to make money from stock investment.
Mike: Not at all. When you really invest in stock market, you'll get involved into the whole world.
Julia: What do you mean by that?
Mike: To decide which share you'll buy in is quite hard sometimes. You have to consider the market tendency; the growth of the company and you'd better know something about technical analysis.
Julia: So boring it is. I'd better invest in some fixed interest fields.
Mike: Certainly you can. You won't suffer from the risks. But your wallet will suffer.
Julia: What should I do?
Mike: If you really want to invest in stock, perhaps you should find a broker.