Stock market is it right time to invest...
Stock market
About the stock market
In the 1600's Dutch East India Company employed hundreds of ships to export their gold, diamonds, silks and spices to all over the world. But the export charge is very high, because they share the exportation prices to other countries who they want to involve in the trade.The countries who are involved in the trade of the Dutch will give the shares that are the part of the profit. So from these Dutch evolved parallely the shareholders are evolving as well. For sharing these export shares and coffee shop shares, the Dutch will be the first who invented the world's Stock market. Based on this the stock market is getting evolved not only in the exports the investors who are all willing to be in the part of businesses has also started.
Need to know how companies and investors use the market?
For example, an IT company is going to start advertising the company to the bigger investors of the market. If the investors found that is useful and profitable they can buy the initial shares from that company called Initial Public Offerings(IPO). Now the company stock is getting into the public. If the public investors are found to be profitable they can also buy the shares from the company. From these the shareholders also will be the partial owner's of the company.If the company is losing the shareholder will analyze it and ability to sell the stock before the actual value is getting lower.Until the company is in a profitable situation again the shareholders need to be aware of all the situations.
About the stock market
In the 1600's Dutch East India Company employed hundreds of ships to export their gold, diamonds, silks and spices to all over the world. But the export charge is very high, because they share the exportation prices to other countries who they want to involve in the trade.The countries who are involved in the trade of the Dutch will give the shares that are the part of the profit. So from these Dutch evolved parallely the shareholders are evolving as well. For sharing these export shares and coffee shop shares, the Dutch will be the first who invented the world's Stock market. Based on this the stock market is getting evolved not only in the exports the investors who are all willing to be in the part of businesses has also started.
Need to know how companies and investors use the market?
For example, an IT company is going to start advertising the company to the bigger investors of the market. If the investors found that is useful and profitable they can buy the initial shares from that company called Initial Public Offerings(IPO). Now the company stock is getting into the public. If the public investors are found to be profitable they can also buy the shares from the company. From these the shareholders also will be the partial owner's of the company.If the company is losing the shareholder will analyze it and ability to sell the stock before the actual value is getting lower.Until the company is in a profitable situation again the shareholders need to be aware of all the situations.
Is it right time to invest in stock nowadays
The first thing is depends upon your interest and the cash values.If you invest 1 dollar or 1 rupee in the stock market in 1930 now it will be somewhere around seventeen thousand seven hundred rupees or dollars.
Three key points need to be taken
1) From the 90 years of stock market analysis timing the market is not the strategy.
2) High stock holding investors are now selling their stocks and moving to bonds or cash.
3) Mr.Warren Buffett who is the balanced investor investing more nowadays.
From these should save as cash nowadays the answer is yes and no.Let's go through both perspectives.
The answer is no , to save the cash because the money inflation is getting higher nowadays.If you are having cash of 100 rupees in the fixed deposit and the fd rate is about 5 to 6% ,now the inflation rate is 8% then definitely your money is under loss.
The answer is yes,if you are having cash and you are saving right now go invest in stock it is in loss state if you invest get crazy profits.
The answer is no , to save the cash because the money inflation is getting higher nowadays.If you are having cash of 100 rupees in the fixed deposit and the fd rate is about 5 to 6% ,now the inflation rate is 8% then definitely your money is under loss.
The answer is yes,if you are having cash and you are saving right now go invest in stock it is in loss state if you invest get crazy profits.
Benefits of stock market investing
1) Price Appreciation - If you are buying the stock and holding it for 3 to 4 months if the stock value gets higher your money value also increases.
2) Dividend - The company will share the profit to stockholders as the dividend.Some companies will give that for in a year or 2 years.
3) Bonus - If you are holding 100 shares, the company will give the bonus as for 1 share they give the equivalent 1 share that means if you are holding shares , getting equivalent of another hundred shares as the bonus.
Comments
Post a Comment