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Stilettos and Stocks

By Melissa Gutierrez
Posted On Apr 23, 2016
Stilettos and Stocks

I’ve always had an interest in the investment world, more specifically stocks, but I never voiced it. The moment I started poking my head into the infinite world of finance and numbers, I was met with skepticism- “why do I want to learn” and “why the sudden interest?”

Why is it so unbelievable that a twenty-six year-old female wants to take all the right steps towards financial success? After all, I am never questioned when I buy yet another purse or when I state I want to learn to bake.

Is it still an intrinsic belief that men should focus on investment portfolios while women should be preoccupied with Prada and Valentino handbags?

Admittedly, delving into the investment realm is no easy task. It requires knowledge, networking, keeping up with current events, strategy, diligence, and perseverance. Understanding the market and the trust factor that accompanies it, is crucial- understand the risks, analyze trends, and know the pros and cons.

By no means am I an investment guru, I just embarked on this journey, but I want to pave the way for young women to have an information source from which they can launch off. I have composed a mini ‘investment series’ to discuss various financial topics and I will commence with the stock market.

Most people do not fully understand stocks, but much is speculated from conversations with others who also do not know what they’re talking about. Simply put, a stock is a share in the ownership of a company.

As an owner of a stock, or shareholder, you are entitled to your share of the company’s assets and earnings. These earnings, or profits, are sometimes paid out in the form of dividends. However, some companies may not pay out in dividends; in this case, a shareholder can make money on a stock through its appreciation, an increase in the value of stock over time.

On the other hand, as an investor in the company, you assume the risk of the company not being successful, but, no matter what, the maximum value you can lose is the value of your investment.

There are two main types of stocks: common stock and preferred stock. The majority of stock is issued out as a common stock. Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations, what you think of when you think of a trading floor in Wall Street, and others are traded over a virtual exchange. For instance, the New York Stock Exchange (NYSE) is the most prestigious exchange in the world and the Nasdaq is the most popular virtual exchange.

The tumultuous world of the trading floor is far too immense to fit in this article. However, my hope is that I provided enough knowledge to encourage young women to become more familiar with the stock market. After all, it is one of the greatest tools ever invented for building wealth.

Ladies, let’s step up to the plate and own the investment world in stilettos and Prada bag in hand. Be on the lookout for the next part of the ‘investment miniseries’- bonds. #LikeABoss