Why Own Stocks?

Are you itching for a chance to start investing in the stock markets? Stocks can be quite intimidating for the new investor. To better manage your money and make smarter decisions, you must familiarize yourself with all aspects of the stock market. Studying the history of stock trends, company portfolios, and successes and failures will help you feel more comfortable and at ease with stocks. As a result, better judgment and decisions will be made. There is a lot of work involved but it is all worth it when one of your small investments grows into a big fortune. Owning stocks can be one of the easiest routes to increasing your wealth over time.

If you are new to world of stock markets and stocks, you must be wondering, what exactly is a stock? Well, stocks are shares in the ownership of a company. By purchasing a share of stock, you (the shareholder) are entitled to a small portion of the organization’s assets and earnings. There are many sites and resources available online to help you get started. Stock trends can be found online through financial newsletters, raw financial data through the websites of trading exchanges, and informative articles and press releases. Figuring out which stocks are the best stocks to own might be a bit tricky. It will involve a long process of researching and following stock trends before deciding which stocks you should invest in.

Now, the next question you are probably wondering is why would any company— whose main objective is to profit — want to share their earnings with you? In order to expand their businesses, companies need a lot of money. Other companies need to finance hefty start up costs for their new business. These companies finance that money by borrowing money (taking out loans) or selling stock. The downside of borrowing loans is the accumulation of interest after a period of time in addition to the repayment of that loan. Therefore, selling stocks is the more attractive option for companies because there is no interest and no requirement that any of the money has to be repaid.

To make investors’ lives easier for buying and trading stocks, the stock exchange is one-stop shop for publicly traded shares of a company. You can either purchase stocks online or through a stock broker. Thanks to the Internet, we can easily track real-time fluctuations and adjustments of stocks through websites like: NASDAQ, Yahoo! Finance, Market Watch, and CNN Money. Following the media and press releases will be extremely critical to your success in being profitable from stocks. If there is negative media surrounding a certain company stock, you can count on the stock price plummeting. As a reaction to negative media, you may find it wise to sell some of your shares for that company. The same can occur when there is positive media involving that stock. People may start purchasing stocks again after confidence in that company is restored—driving stock prices back up. Therefore, as a new and current investor, it is very important for you to rigorously check online stock websites.

No one can tell you how to invest your money—after all, it is your choice where and how you want to spend it. Investing in stocks will allow you to grow money over time so you can put it in your savings for retirement. Buying and trading stocks is extremely convenient and easy in today’s modern world. If are ready to step into the exciting world of the stock market, you may find that it is similar to gambling. With any kind of gambling, there are also a number of risks involved—divulge yourself in learning as much as you can about the stock market before getting started. Take advantage of stocks advice being offered through financial newsletters, articles, and press releases to make better investment decisions. Good luck!

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