How does Wall Street work? Why are there shares and how are shares distributed? Why do companies go public anyways? How can i get good at stock trading?

There are tons of questions and many qualified answers as to how to survive trading stocks. Generally, public companies, such as Microsoft [MSFT], Google [GOOG], Citigroup [C], Evergreen Energy [EEE], just to name a few, are trading shares of their company for the purpose of generating capital, and let you have your slice of the cake of corporate fortune. The process of going public is a long and outdrawn one, that oftentimes doesn't come cheap to the company wanting to meet and exceed all requirements to be listed publicly.

While many companies do not need to go public, the correct public offering may skyrocket the value of a company and provide much needed capital to further the growth of a company. With the influx of capital comes the responsibility of satisfying the shareholders. Many companies have been changed throughout this process and some even lost the connection to their roots - by needing to satisfy the shareholders at all costs.

So you want to buy shares? Literally, you may think of shares as slices of cake - you are able to buy your personal slice of cake at a price. The more valued a company, the higher the price per share. The lower the value of the company, the public perception and/or their products, the lower the value of their shares.

While you might be able to secure shares for under a dollar, these companies, commonly referred to as "penny stocks", many of the renowned corporations such as the ones named above, trade for a few dollars or few hundred dollars per share.

Generally, it's in the comfort level of the investor whether you'd like to buy a higher value share or a penny stock and, contrary to popular belief, you do not need a certified broker to assist you in purchasing stocks. There are several companies which let you buy and sell stocks online. Many of these companies let you establish an account without a minimum balance, making it the perfect launching pad for new stock investors and traders.

The volatility of the market is not going to spare you and your stock investment efforts. It is generally a good idea, to research the trend of the industry, the company and the general public perception of the company you're about to invest in.

Once you familiarized yourself with the mechanics of the industry and company you'd like to invest in, you have several options to excercie a stock purchase. Read up on the ways of buying stocks at your brokerage. Some may assist you with a personal purchasing agent, others let you go at it at your own choosing. Most have one thing in common though - each exchange, whether you're buying or selling, is subject to a charge. These charges range anywhere from a few to up to $10 dollars per exchange.

Getting good at stock trading has a LOT to do with research, knowledge and a little bit of luck as there will always be elements that are outside of your control.

Best of luck in your stock trading ventures - if you do it right, there might be a little Warren Buffet inside of you!

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