Stocking Up

By: Phillip Grill,11°

There are many different ways to be an investor. There are many different investment markets: the stock market, the bond market, and the commodities market. Although investments are never guaranteed, the markets can be an excellent avenue to increase your wealth, as long CU [QW JCXG C FKXGTUKſGF CUUGV RQTVHQNKQ 6JGNew York Stock Exchange and the Bolsa in Colombia are examples of organizations that allow you to buy shares from different companies. There are also many ways to enter these markets; Ameritrade Mobile, Robin Hood, and Acorns are just a few examples of all the apps that pave the way to easy access to the investment market. As said before, one doesn’t need to be an expert to enter the market. Whether you are 16, 45, or even 80 years old, it is never too late to start having investments. One example is Antonio’s mother. Antonio is a 13-year-old kid who studies at Colegio Bolivar whose mom invested 3 million pesos in the Bolsa in 2006 for him. Now, this money has multiplied by almost four, having a revenue of 8 million pesos after 13 years. Even though this doesn’t sound like much, it is. Over the course of time, money is multiplied by itself, creating a huge amount of money in a short period of time. Think about it; if you invest now, you might be a billionaire one day. Just remember to not touch that money! If you want to be more educated about the market to have more possibilities to become a wealthy and successful person, there are many ways you can be educated.

There are three ways to become instructed on JQY VJG OCTMGV YQTMU 6JG ſTUV QPG KU VQbecome a stock broker. A broker has to take certain steps to reach full knowledge, but surprisingly, it is optional for them to pursue a college degree (depending on VJG DTQMGTCIG ſTO QPG YCPVUVQ CRRN[VQ$TQMGTU JCXGVQ ſPF C EQORCP[ CU C URQPsor in order to present the most appropriate 0#5&VGUV VJGVGUVVJCVUC[UKH[QWŏTGſVQTPQVto be a broker). The most common NASD evaluation is the series 7 NASD test. An average test taker usually studies for about 7 months to have successful results. When the test is pasUGFQPGECPYQTMHWNNVKOGCVCDTQMGTCIGſTOby instructing people who don’t understand the

market or developing a less conventional way to help, like an app. The second way to become an expert in investments is to download an app and learn through it. Acorns is an app designed for teenagers and retired people since it facilitates the approach to investments in an accurate OCPPGT6JG ſPCNYC[VQ DG CP GZRGTV QPVJGmarket is not reliable at all. Many millionaires have become rich from the comfort of their own couch. How did they? It’s simple. They dedicated a small portion of their day to learn about the stock (by watching tutorials on YouTube and talking to experts), how it worked and the methods they could use to make money.

Before considering entering the big markets, we should know everything about them. With more than 2,800 companies and 15 trillion dollars in combined value, the New York Stock Exchange is the biggest stock market in the world. It was created in 1792 when 24 brokers in New York gathered beneath a Buttonwood tree to sign an agreement in which it was established what buying and selling bonds and shares was. In 2019, the stock market is a physical market (one must be there to trade with stocks); so, obviously, it is full of brokers trying to buy and/ or sell stocks to one another. On the other hand, there is the Bolsa in Colombia. It was created when the markets of Cali, Bogotá, and Medellín signed a formal agreement to become a national stock market. Almost every company in the Bolsa is also traded on the New York Stock Exchange (meaning that anyone inside Colombia commercializes with stocks internationally), creating massive amounts of opportunities to buy or sell these ownerships. The Bolsa is also a physical market which requires a broker to be there and trade with your stocks in your name.

Let's get into the interesting part of the market now. There are two major types of investments in these markets; you can either invest in stocks or bonds. The main difference between these two kinds of instruments is that when you buy a share from a company, you are actually obtaining a percentage of ownership. When you purchase a bond, you are loaning money to a company, and that company has the obligation to pay back with interest. Typically, this interest is called a coupon. Some stocks pay what is called a dividend. This dividend is similar to the coupon payment of a bond. From those humble beginnings, the stock market in New York has developed into a massive digital trading machine. However, the rise and fall of stock prices CTG UVKNN FGſPGF D[VJG UCOG DCUKE RTKPEKRNGUsupply and demand. In other words, when the number of investors that are buying a stock exceeds the number of investors who are selling the stock, the stock price of a company goes up and vice-versa.

In conclusion, the market can help you make a fortune or lose one. It is unpredictable and has OCP[ WPYTKVVGP TWNGUVJCV CTG ENCTKſGFKPVJKUarticle. Learning these rules will help you become an educated person in brokering and guide you when managing your money in order to obtain safe and positive results. Warren Buffet has two basic tips: “1) Never try to predict the market, it’s ever-changing and there are no patterns in it. 2) Never invest or do business in a ſGNFYJGTG[QWFQPŏVJCXGOWEJGZRGTKGPEGQTknowledge because you might get a bad outcome out of it.” “When?” and “how?” are the questions to start your investor life. You have been taught about how to solve them; so, what are the hold ups? Start now.