How to Get Started in the Stock Market

Start by doing some basic research into the stock market. Answer long standing questions you may have such as; what is the stock market, or how do you make money in the stock market. You should be working with a solid foundation of knowledge before you attempt to dabble in the market.
Read a financial newspaper such as the 'New York Times' stock section or the 'Wall Street Journal' to learn more about what is happening currently in the market. Stay updated on financial news every day.
Pick five stocks to follow and analyze their trends over the past four or five years. Utilize the Internet as a research to help you track their progress. Create a flow chart with information regarding those particular companies net inflow and outflow and try and distinguish trends amongst the various fluctuations in income production.
Play a virtual stock market game on the computer. Check into various online stock market games as they are a great primer to playing the actual market. Engage in the virtual market for a while before starting on an actual investment opportunities.
Decide what you want to invest in the market for; perhaps you are saving for your future, a house, a new car, or to amass a larger net worth. Determine your risk tolerance and how much fluctuation you can handle without getting nervous to pick on an adequate stock. For beginning investors, mutual funds are usually the safest and least anxiety provoking.
Figure out where you will get the funds to invest in the market and set aside anywhere from $500 at first to buy a few shares of the stock you've chosen. Find a reputable stock broker to help you buy and sell your shares of stocks. With your new knowledge, you might not need a full service broker but for beginners it is often recommended.

How to Calculate Stock Growth Rate (5 Steps)

Divide the final value of the stock by the initial value of the stock. For example, if the stock started off being worth $120 and is now worth $145, you would divide $145 by $120 to get 1.20833.
Divide 1 by the number of years the growth occurred over. For example, if it took three years to go form $120 to $145, you would divide 1 by 3 to get 0.3333.
Raise the result from Step 1 to the result from Step 2. In this example, you would raise 1.20833 to the 0.3333 power to get 1.0651
Take away 1 from the Step 3 result. In this example, you would take away 1 from 1.0651 to get 0.0651.
Convert the result from Step 4 from a decimal to a percentage by multiplying by 100 to find the compound annual growth rate. Finishing the example, you would multiply 0.0651 by 100 to find the compound annual growth rate to be 6.51 percent.

How to Expense Employee Stock Options (3 Steps)

Debit 'Compensation Expense' and credit 'Additional Paid-In Capital for Stock Options' to record granting the stock options. The expense should be matched to the work completed. In our example, debit 'Compensation Expense' $50,000 and credit 'Additional Paid-In Capital for Stock Options' $50,000. Repeat this entry for each year. The amount is $50,000 instead of $150,000 because the stock options are for three years of compensation, so $150,000 divided by 3 years equals $50,000 per year.
Record the journal entry for exercising the stock option, if they are exercised. Debit 'Cash Received' and 'Additional Paid-In Capital for Stock Options.' 'Cash Received' equals the amount of cash received for the stock, $500,000 in the example and 'Additional Paid-In Capital for Stock Options' equals the amount first recorded, $150,000 in the example. Credit 'Common Stock' by the par value times the number of stock issued, $50,000 in the example, and 'Additional Paid-in Capital in Excess of Par' by the amount needed to balance the journal entry, $600,000 in the example.
Record the journal entry to record the expiration of the options if they expire. Debit 'Additional Paid-In Capital for Stock Options,' $50,000 in the example, and credit 'Additional Paid-In Capital for Expired Stock Options,' $50,000.

How to Sell the Stock Certificates of Deceased Persons

Determine whether you have legally inherited the stock certificates. If the stock certificates were granted to you by will, you will have to wait for the probate court to process the will. The probate process may take several months to more than a year. If the stock certificates were granted via a trust, the trustee of the trust will send the certificates to you, usually fairly soon after the death. Just as with probate, if the certificates pass to you by intestate succession, it will take many months or years to receive the certificates.
Review the stock certificates to determine if they need to be re-titled in your name. If the certificates contain language requiring re-titling, follow the instructions on the certificate. This often involves sending the certificate to the company with a copy of the estate document transferring the stock.
Contact a stockbroker or brokerage company to sell the stock. Make sure the certificates can be sold and that there is a market for the stock. Stock certificates in the electronic age are uncommon, and certificates are often only used for private and small companies. This sort of stock is often difficult to sell. Send the stock certificates to the stockbroker or company. If the certificates were not re-titled in your name, also transmit the estate document that transferred the stock to you.
Instruct the broker to sell your stock. The stock will usually be converted to electronic shares and sold the next trading day on the stock market.