A Guide To How The Stock Market Works

Stock Market is an investment for the smart and shrewd investor who loves taking risk and benefitting from it. But this skill is acquired through continuous learning and experience gained over years and years of buying and selling stocks.

Contrary to modern beliefs, stock market trading is not a gamble. While it involves certain degrees of risk and upto some extent luck, success in this trade is rooted only from knowing the game inside out. Knowing more about the basics of how the stock market works can govern the decisions during trade which can eventually result in a gain or loss.

What is a Stock?

Often people use the terms, ‘stock’ and ‘shares’ alternatively but they have quite different meanings. Every organization issues shares of itself to the public and a stock is essentially the ownership of the share. Companies issue its shares through an Initial Public Offering or an IPO and it is usually done to raise money from people who purchase these shares.

The price of the shares is determined based on the company’s value, and it varies according to how the company is performing and the direction to which it is headed to.

How is the price of a stock determined?

The factors that determine the price of a stock not be necessarily be only dependent on the performance of the company. Most importantly, it is governed by the rates of supply and demand, performance of the industry, success of the company in the recent times and also even plain popularity due to a viral marketing campaign.

So, how does it work?

Stock trading like any other form of trading involves buyers and sellers. A trader may buy some stocks of the company by investing the portion of money which would be the cost of each stock multiplied by the quantity he / she purchases.

The perceived value of company changes over time and the cash gained and lost is founded on this alternating value. The buyer may sell the stock when the value of the company increases and that brings a profit in the margin of difference.

If the value of the stock of a company dips down, sellers tend to sell their stocks hastily in order to reduce the loss margin. As the price further dips down, there would come a point where the demand from buyers would increase which in turn raises the stock price.

The bottom line is that stocks have been a vital source of investment for companies. Buying and selling of stocks happens at Stock Exchanges which are connected together globally. The New York Stock Exchange, Bombay Stock Exchange are some of the most prominent stock exchanges currently.

Click here to learn about medicare supplement www.medigapplansguide.com/medicare-supplement-plans-2019.

A general idea about the Medicare supplement plans

If you are planning to buy Medicare supplement plans or insurance, you will find that there are several agents as well as the recipients of the Medicare and for each of them, they consider that the plan F of the Medicare supplement is quite the Cadillac or the master of all the other supplement plans out there.

What do you know about Medicare supplement plans?

Now before the subject of supplement plans are delved into deeper, you need to have an understanding of some of the basic information or idea about these insurance products. Medicare is nothing but a programme which is run by the government, and he supplies these Medicare supplement plans via which he provides medical assistance to those people who are the senior citizens of the country.

The government is responsible for the payment of the health coverage of the older people in the country. All those people who also fall under the senior citizenship and have been physically or mentally disabled are also the ones who suffer from these problems. However, you need to understand that the coverage provided NY Medicare itself is not at all adequate as far as your health is concerned.

Medicare has a lot of loopholes in them

In fact, there are several gaps or problems or loopholes which are present in the coverage which can result in the recipient having to pay for his or her treatments by him despite having a Mediclaim. This is where the Medicare supplement plans come into play. This plan is basically used for the purpose of filling in all the loopholes which are otherwise present in the Medicare by itself.

Monthly premium paid varies from place to place

In fact, it is also known as the medical insurance at times due to the role it plays. There are three factors which are paid huge importance with respect to the supplement plan. They are the medical history, the financial condition as well as the opinions which they personally hold on their health care.

The first thing which is made sure is whether they have the money required to pay for their supplement plan. The starting price of the plan F is about 95 dollars, and it just upgrades or increases from there. There are some factors based on which the month-based premium will be differing. Monthly premiums for Medicare supplement plans depend on the area you are residing in, your age.

Understand the difference between Medicare Advantage and Medicare Supplement Plans

What are Medicare Advantage Plans (Medicare Part C)?

The insurance organizations that have the approval of Medicare, provides Medicare Advantage plans. They provide benefits of Part A and Part B plans with an exception of Hospice care.

What are Medicare Supplement Plans (Medigap)?

The private insurance organizations offer these plans. They cover some health care costs not covered by Original Medicare, like deductibles, premiums, and copayments.

How to choose between the two?

One must always compare the advantages, benefits, and costs in relevance to one’s present health conditions and healthcare requirements. While comparing consider, the following factors:

  • Monthly Premiums
  • Deductibles
  • Predicted healthcare and hospital services costs, often used by oneself
  • Plans network of doctors, hospitals, and pharmacies.
  • Prescribed drugs required on regular basis
  • Maximum expected out-of-pocket expenses.

Can one avail both the plans?

No, both of them cannot be availed together as Advantage plans do not operate with Medicare Supplement plans. Hence, one cannot make the payment of Part C Medicare Advantage plan using Supplement plan to cover copayments, premiums, or deductibles.  

A comparative chart study:

Benefits Medicare Supplement Plans Medicare Advantage Plans
Doctors – Hospitals Freedom to choose any doctor and hospitals, if they accept Medicare patients. One may need to choose doctors or hospitals only from the plan network.
Referrals One can consult specialists even without any referrals. Referrals may be required and may need to consult specialist covered in the network only.
Network It does not confine to any area, hence, it works across the United States of America. Network restrictions are likely to be present. However, it covers emergency care during travel within the United States of America and in some cases abroad also.
Enrolling After attaining the age of 65 years or older anyone can purchase a supplement plan and enroll in Medicare Part B plan. One can enroll or switch to another Medicare Advantage plan in the specific periods of the year only.
Costs In addition to Part B premium, monthly plan premium is also paid. It limits the out-of-pocket costs at the time of using services. In general, there is no requirement or a very low monthly plan premium is required to pay against Part B premium. At the time of availing services costs like, co-pays, co-insurance, and deductibles need to be paid.
Prescription Drug Coverage Prescription drug coverage is not included, can also enroll in Medicare plan Part D. Prescription drug coverage is included with most of the plans.

 

 

 

 

 

Know Your Eligibility to Enroll in Medicare Supplement Plans

Medicare Supplement plans are health care plans sold by private health insurance organizations. However, in contrast to other private organizations, they have some eligibility criterion.

Eligibility in accordance with Original Medicare

Medicare Supplement Plans propose to work in accordance with Original Medicare (Part A and Part B). You must enroll in Medicare to be eligible for any supplement plan. Part A and Part B are accessible to all the U.S. citizens or permanent legal residents fulfilling following requirements, for a minimum of five years:

  1. Attaining age of 65 years or older.
  2. Diagnosed with ESRD- permanent kidney failure requiring dialysis or transplant.
  3. Availing any disability benefits either from the Railroad Retirement Board or Social Security Administration. However, only after 24 months of receiving the disability benefits, you can avail medicare facility.
  4. Diagnosed with ALS.

As part of the system, people get to enroll in Medicare Part A after turning 65 years of age. It offers a premium-free plan for the people, who have work experience of 10 years and paid their Medicare taxes. In most of the cases, people also enrolled by default in Part B with the policy of payment of monthly premium.

 Eligible Age to Avail Supplement Plan

The centralized law does not instruct insurance organizations to sell the plans to people who are under the age of 65. Although in some states, Supplement plans have the age as one of the eligibility criteria. This implies that one cannot avail the services until he/she is 65 years old, even if one has ESRD. However, many states instruct the organizations to provide one type of Medicare Supplement plans to people who are under the age 65.

Plan Eligibility for People under the Age of 65 Years

Many insurance organizations in some states offer Supplement plans to people under the age of 65 years, even without any instructions by the law. Although, the plans may cost higher than the plans are costing to people of 65 years or older. An insurance organization may also access the health conditions to make policy related decisions, which may result in an increase in premium subject to any case of existing health condition.

After enrolling in plans Part A and B, you can enroll in any Medicare Supplement plans. There will be no restriction of enrollment periods because of any other Medicare enrollment options.