On July 1, 1997 Amazon (AMZN) common stock was trading at $1.54 per share. Today AMZN is $1052.80 per share. I was still a child at this time, but what if my parents were start buying me shares of AMZN in 1997. If they bought $10.00 worth of AMZN shares for me in July of 1997 that $10.00 would be roughly $5,264.00 today, in just 10 years. Don’t you want to find a company to start investing in?
How to Search for companies on the New York Stock Exchange (NYSE)
The NYSE contains three Indexes:
NASDAQ, S&P 500, and the DOW JONES
Within these three indexes are the different company common stock shares. Imagine that the three indexes are three major car companies (ex. Toyota, Ford, Honda). All three car companies have cars have their own types of cars that they sell. Now, you can purchase a share of the entire car company or you can go into one of the car company dealerships and buy one or more of the different cars they offer.
For example, to purchase a share of Nasdaq today it would cost me about $6,421.00 or I can purchase a share of Apple, Inc. (AAPL), which is a company trading shares out of the Nasdaq index, for about $150.00 per share. The Nasdaq share price is an average share price of all of the companies that are contained within the index (NASDAQ). Just about each and every publicly traded company in the United States is contained in one of those three indexes (mentioned above).
There are many ways to go about finding different companies to invest in; I am only here to offer part of the process I go through. The first thing I do when looking for a new company to invest in is go to finance.yahoo.com and click on one of the three indexes in order to find their different companies under the components tab. Here are three links I found listing the companies contained within each index.
After I find the list, I go through each company and try to assess their value. I will cover valuation at a later date as it can be quite complex.
You will still need an online broker in order to purchase any shares but you don’t need a broker to analyze the companies of which you intend to buy shares of. Do some of your own research, you may find a more efficient way of finding companies to evaluate. If you do share with me.
BUILD YOUR FINANCIAL LITERACY ONE DAY AT A TIME!!!