Most investors traditionally purchase stocks by purchasing a whole number of shares. The price of is the sum you buy multiplied by the price. For example, buy three shares of the $12.52 stock and shell out $37.56.
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Add your monthly cash outflows; including monthly expenses and any loan repayments you preferably should make. Average your yearly payments since insurance and children's' school fees (if any) by dividing this amount by twelve.
What is a stock? A "stock" is only a share of ownership in a small-business (think of companies such as your favorite brands in handbags, shoes, food, etc.). Companies sell shares of stock in their company when they want to money. Suppose up-and-coming designer Tory Burch wanted to read boutiques from around the world? She could sell shares in her company and raise the money to use this.
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