Introduction to US stocks | It turns out that you can buy 1 share! 5 investment rules to understand when buying US stocks

For many people facing challenges such as stagnant wages and rising prices, working as a delivery person or running a social media business on the side has become an option to solve the problem of daily expenses. On the other hand, “stock investment” has gradually attracted the interest of newcomers to the stock market. For newcomers who have just entered the stock market, what important information do they need to know? What methods can they use to learn more in depth?

Stock Introduction | 3 Important “Trading Rules” for Investing in US Stocks

[Investment in US stock trading hours] US trading hours: Monday to Friday (closed on weekends and US national holidays) Time: 09:30 am to 4:00 pm Eastern Time

[Trading Unit] The trading units of stocks in global stock markets may vary. The trading of US stocks is much simpler, with the minimum trading unit being 1 share, so there is no need to select a specific trading unit when purchasing US stocks. Understanding the size of stock trading units can help investors better invest in stocks, reduce transaction costs and risks, and thus increase their return on investment.

[Price Limit] Price limit refers to the maximum amount of increase or decrease allowed for stock prices in the stock market. This limit is set to protect market stability and the interests of investors, to prevent excessive stock market fluctuations from causing market crashes or excessive losses for investors. There is no price limit for US stocks. Only when the price of US stocks rises or falls too much, US stocks will be forced to suspend trading, and normal trading will resume after a period of time. This is called the “circuit breaker mechanism.”

Introduction to US stocks | Pay attention to the difference between “cash account” and “margin account” when opening an account

When opening a US stock investment account at 1455, you will be asked whether to enable the “margin account function”. The difference between a cash account and a margin account is that when buying securities with a cash account, you can only use the account’s own funds (cash deposits); while a margin account allows investors to borrow money from US stock brokers to buy securities.

Introduction to U.S. Stocks | Number of U.S. Stock Dividend Payments

When investing in the U.S. stock market, as an investor, in addition to the company’s stock market growth and the bid-ask spread, dividends are also one of the most important parts for investors. Basically, U.S. stock dividends are mainly distributed in cash. Most companies distribute dividends to shareholders on a quarterly basis. If you want to participate in the ex-dividend, you should pay special attention to the following 4 dates: Declaration date: the announcement of the ex-dividend date and the dividend distribution date Ex-dividend date: To receive dividends, you must complete the subscription of stocks before the ex-dividend date. Registration date: Shareholders who purchase stocks on the ex-dividend date will be listed in the register. Dividend distribution date: The company officially distributes dividends to shareholders. If you apply for stocks after the ex-dividend date, you will have to wait until the next time to receive the dividend, so pay special attention to this day.

This article has compiled a simple analysis and summary of US stocks. Does it help you understand more about US stocks? If you want to enter the US stock market, you must establish the correct concept. It is recommended that investors can refer to a few more articles in the knowledge base to build their own database.