StockMarketInvestment
Stockmarketinvestmentgivesyoutheuniqueopportunitytotakeadirectpartinthegrowthandsuccessofcompanies.Whenyoubuysharesinacompany,itmeansthatyouactuallyownaportionofthatcompany.Aspartowner,youbenefitbyreceivingpartoftheprofitsordividendsandsharinginthegrowthofthevalueofthecompany.
Thecompanybenefitsbyraisingfundsorcapitalwhenyoursharesandothersharesarefirstsold.Thesefundsareusedtooperateandexpandthebusiness.
Ingeneral,shareinvestmentsproducebetterreturnsthanfixedinterestinvestments,particularlywhenmoneyisinvestedlongterm.
Althoughtherearerisesandfallsinthestockmarket,historyshowsthatoverthelongterm,thevalueofthestockmarketrises.IntheUS,whichhasalonghistoryofderegulatedstockmarket,theaveragerealreturnperannumafterinflationisapproximately10%.
Directinvestmentinthestockmarketalsogivesyoucontroloverwhereyouputyourmoney.Youdecidewhichcompaniesyouwanttoinvestinandwhenthetimeisrightforyoutoseeyourshares.Ifyouwanttobeincontrol,stockmarketinvestmentisagoodoption.
Anotherattractivefeatureofstockmarketinvestmentistheflexibilitytochangeyourinvestmentswhenyourpersonalcircumstanceschange.Forexample,ifyouneedmoneyforawell-earnedbreak,anextensiononourhouseoryourchildren'seducation,allyouneedtodoissellyourshares.
Stockmarketinvestmentallowsyoutofollowyourinvestment.You'llreceiveregularinformationfromcompaniesyouinvestinandcanattendmeetings.Thisenablesyoutogainauniqueinsightintotheresultsandstrategiesoftheorganizationandlearnalotintheprocess.
Marketinvestmentalsoallowsyoutofollowaparticularinterestyouhave.Forexample,youmayhavelivedallyoulifeinaforestryareaandareinterestedinsupportingthisindustryandbenefitingfromitssuccess,byinvestinginlistedforestrystocks.