Comprehensive Guide to Stock Market Investing

This comprehensive guide provides insights into stock market investing, covering how to buy and sell stocks, top stocks for 2018, and reasons to invest in major companies like Bank of America, CUBI, and Applied Materials. Essential for beginner and experienced investors, it highlights strategies to build a successful investment portfolio and upcoming market opportunities.

Basics of Investing in the Stock Market

The stock market serves as a platform where investors buy and sell shares of publicly listed companies worldwide. More than 6,000 firms are traded across global exchanges. When you buy a stock, you're acquiring a part ownership in that company. Firms issue shares through initial public offerings (IPOs) to raise capital, with share prices determined by company valuation and share volume.

Funds from IPOs support company growth, while shares are traded regularly on stock markets. Companies only receive capital during the IPO; subsequent trading is conducted between investors.

How to Buy Stocks

Conduct research on market trends and identify stable growth companies for potential investments.

Select stocks of companies with consistent performance over recent years.

If you're unsure about picking stocks or estimating profits, consulting a financial advisor or broker is recommended.

Open a brokerage account to begin trading.

Transfer funds from your bank account into your brokerage account.

Place a buy order through your broker, who will execute it on your behalf.

The stock exchange matches your order with suitable sellers based on your price preferences.

Once matched, your purchase is confirmed, and you receive a transaction receipt.

Methods to Sell Stocks

To sell stocks, submit a sell order via your broker.

Your broker forwards the order to the stock exchange.

The exchange locates the best buyer for your shares.

The sale executes at your specified price.

Shares are deducted from your account after completion.

Top Performers to Watch in 2018

Applied Materials (AMAT)

Bank of America

Customers Bancorp (CUBI)

Berkshire Hathaway

Charles Schwab

Citigroup

Cubic

Delphi

DXC Technology

The Goldfield Corp.

Why Consider Investing in Bank of America

As the second-largest bank globally, Bank of America offers stable growth potential.

Rising interest rates tend to boost profits, increasing stock value.

Positive outlook driven by tax reforms and rate hikes makes it a compelling investment for 2018.

Benefits of Investing in Customers Bancorp (CUBI)

The expanding digital banking industry makes CUBI an appealing stock for 2018.

With approximately $900 million in revenue, analysts predict the stock may reach $4 per share, with potential growth to $39 by year's end.

Growth Outlook for Applied Materials

As a key player in wafer fabrication equipment, Applied Materials has experienced significant growth, with stock prices increasing over 320% in five years.

Recent quarterly growth and an estimated annual increase of 35.5% point to strong future prospects, making it an ideal long-term investment.