Investing in Stocks – What Are Some Options?
Stocks, commonly referred to as “shares”, are portions of companies which people can buy and therefore own a part of the company. Company issues shares to the general public when it analyzes the need to raise the funds required to run and expand the business to maintain its goodwill.
Shares are of two types – common shares and preferred shares. When the company holds its goodwill, both the shares yield well. The profit difference among both is observed when the company (you have
After understanding what the stocks are, next we need to know why investment in stocks is necessary and how investment in stocks is beneficial.
Money can be earned in two ways – first, by exchanging your efforts and labor or services for money. Second, by making your money to earn that additional money. Many people opt for saving schemes, which yield tangible interests that are not sufficient to beat the inflation. Many or consider almost 90% of the people earn money by the first method, many of them don’t even have a seldom knowledge of the second one i.e.
Investment in stocks is one of the easiest and fastest ways of earning money. The five good reasons for investment in stocks are:
•Stock markets do not care for you. This implies that whatever you
•Stock markets always poise for growth, The value of the stock will remain high until an investor has confident in the company’s stocks and the prices will start falling once the investors lose confident and sell them out. Again over a period, the value of the same stocks will rise when again the investors will gain confidence. Thus, profits in Stocks are very must inconsistent, they may at a time point may give very high returns or may incur losses, but the conditions are always reversible.
•In stock investment, there are new regulations which always keep ongoing and help the market play safe. Many of these regulations are investor friendly making them more transparent and easy for a common man to understand and help in stock investment.
•Stock investment is the only option where you can earn money in short period (in the form of investment) as well as in the long run.
•The most considered and valuable reason to