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I am very beginner to business and trading.. And On the other side I'm very expert in Computing and tech.

When I type Facebook Inc. in Google, it shows me what is Facebook and Facebook as a company and as a trader. Revenue, Net equity and Operating Income are of not much issue, but I think what are these ↑ $131.88 USD "stock price"?

I need answer of a few basic things like what is trading? What is happening in case of NASDAQ:FB and why do we trade? What is being traded and how we get profited?

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A corporation is a company that is owned by stockholders. A publicly-traded corporation, like Facebook, Inc., is a company where shares of stock (small quantities of ownership in the corporation) are traded in a public stock market.

If you look at the current quote for Facebook and it tells you that the share price is $131.88 USD, it means that you can purchase one share of stock for $131.88. If you do, you will be a part-owner in Facebook. There are roughly 2.40 Billion shares of Facebook stock out there, so for every share you hold, you own about 0.0000000417% of the company.

The shares of stock are bought and sold at a stock market, where brokers representing stockholders trade shares of stock in every public company. To buy or sell shares of stock, you need to open an account with a stock broker.

The price for a share of stock changes continuously, and is based on supply and demand for the stock. The up arrow that you saw means that the current price Google was showing you is higher than the price was at the end of the previous day.

To earn a profit trading stock, you need to sell shares of stock for a higher price than you bought them for.

  • For completeness, you can also borrow shares (through a broker) and sell them 'short', then later buy them back at a lower price, and profit. But this is harder and riskier to do. – dave_thompson_085 Jan 3 at 2:20
  • @dave_thompson_085 Either way, the goal is to buy low and sell high, no matter which order you do it in. But I personally do not recommend short selling, due to the risk. – Ben Miller Jan 3 at 3:09
  • Okay, so I should buy FB stocks when I see text in red along with ↓−3.94 (2.90%). Right? If right, to whom I will sell it when the stocks are at higher price like ↑+1.54 (1.32%) ? – Ravi Prakash Jan 3 at 23:01
  • @RaviPrakash No, I would not recommend that you buy Facebook, no matter what the quote says on any given day. Investing in individual stocks is very risky, and not for someone who is just starting out investing. – Ben Miller Jan 4 at 2:54
  • I don't know if advertising is allowed here on SO, but I am a member of a very serious trading community where we learn how to trade and what to trade. The membership is not that expensive (about $300 a year) and I have gained a lot of knowledge through it. To the point - if you want to start making wise decisions about your money investing, start at least watching Youtube videos about it, there are also lots of good good books on Amazon about simple principles of trading stocks and currencies. That's the right path to go rather looking at the Google search bar without understanding it..... – Tired Of Trading Jan 17 at 19:29

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