Thrills of Investing in the Stock Market
That may be, but investing has its rewards. There are risks, but risks are part of the game of investing. The hope of having more money after investing looks promising for a variety of reasons.
What are some of these thrills that make someone go out and invest in the stock market, hoping for a larger financial return?
Compared with saving, investing is the proactive use of your money to earn more money. In investing, it is your money working for you, unlike saving which is a passive activity. You invest your money in the stock market and hope for a profit in return.
When you buy stock shares of a company, you are in effect buying a piece of that company. In short, you become a part owner. Being a stock holder of the company entitles you to certain rights. This includes voting on important company matters and getting profits if the company distributes dividends. Doesn't it feel great, for example, if you own stock shares of Coca-cola?
Another reason to be a stock holder is that you participate in that company's growth of the company. If the value of the company increases, your investment also increases. If profits increase, don't be surprised if you receive bigger dividend checks. Some stock prices increase for a long period. Some long-time employees of Microsoft became millionaires because of the dramatic increase in their stock value.
"No pain, no gain." It's a cliché, of course, but that is the one thing you must remember in investing in the stock market. How can you get more money if you don't try investing? Do you really think your money will increase if you invest it in a bank (which offers low interest deposit rates) compared with investing?
Risks are part of investing, as in any other decisions you make. But given the thrills of investing, shouldn't you be investing too?
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High Returns in stock market
The Return on Investment (ROI) in stock market trading is the profit you make on the sale of a security or other asset divided by the amount of your investment. ROI in stock market trading is expressed as an as an annual percentage rate. Return on investment (ROI) in stock market trading includes all the income you earn on the stock. It also includes any profit that results from selling the sto. . .