Why Men Crack Ad By Young Rubicam

How to Buy and Sell Securities

WHY WE ARE PUBLISHING THIS INFORMATION A little while ago we published a series of advertisements in this newspaper, explaining the nature of bonds and how they are bought and sold. We received many letters from readers expressing appreciation of this information. Many of these letters asked us to explain stocks in the same way. We are glad to do so. Stocks are, in many respects, similar to bonds. In other respects they are quite different. We have tried to explain these differences in the following article. We hope you will find it interesting and helpful. If you have any questions about stocks or bonds, we shall be glad to try to answer them. Write us at 120 Broadway, New York City. MERRILL LYNCH, PIERCE, FENNER & BEANE What Are Stocks? Stocks are shares in the ownership of a corporation. When you buy a share of stock, you become a part owner of the company. Stocks are issued by corporations to raise money for expansion and other purposes. Stocks generally have a par, dividend, and market value. The par value is the face value of the stock. The dividend value is the amount of money paid to stockholders out of the company's earnings. The market value is the price at which the stock is bought and sold in the market. Why Should Anybody Buy Stocks? People buy stocks for two main reasons: to earn dividends and to make a profit by selling the stock at a higher price than they paid for it. Stocks are considered a good investment because they have the potential to increase in value over time. How Are Stocks Traded? Stocks are traded on stock exchanges, such as the New York Stock Exchange. They can also be bought and sold over-the-counter. The price of a stock is determined by supply and demand. Why Do Stock Prices Change? Stock prices change due to a variety of factors, including the company's performance, economic conditions, and investor sentiment. What Are Bull and Bear Markets? A bull market is a period when stock prices are rising. A bear market is a period when stock prices are falling. How Do You Do Business With a Broker? To buy or sell stocks, you need to work with a broker. Brokers charge a commission for their services. You can give your broker instructions in person, by phone, or by mail. What Does It Cost to Buy or Sell Stocks? The cost of buying or selling stocks includes the broker's commission and any applicable fees. How Big Does an Order Have to Be? There is no minimum order size for buying or selling stocks. You can buy or sell as few or as many shares as you like.