Shares/Stock Why should I invest in Stock Market?

[DAVIDTREND]

Advantage​

Despite its popularity and presence in the news, the stock market is just one of many potential places to invest your money. Investing in stock is often risky, which draws attention to the huge gains and losses of some investors. If you manage the risks, you can take advantage of the stock market to secure your financial position and earn money.

Investment Gains​

One of the primary benefits of investing in the stock market is the chance to grow your money. Over time, the stock market tends to rise in value, though the prices of individual stocks rise and fall daily. Investments in stable companies that are able to grow tend to make profits for investors. Likewise, investing in many different stocks will help build your wealth by leveraging growth in different sectors of the economy, resulting in a profit even if some of your individual stocks lose value.

Diversification​

For investors who put money into different types of investment products, a stock market investment has the benefit of providing diversification. Stock market investments change value independently of other types of investments, such as bonds and real estate. Holding stock can help you weather losses to other investment products. Stock also adds risk to a portfolio, as well as the potential for large, rapid gains, helping investors avoid risk-averse or overly conservative investment strategies.

Ownership​

Buying shares of stock means taking on an ownership stake in the company you purchase stock in. This means that investing in the stock market also brings benefits that are part of being one of a business's owners. Shareholders vote on corporate board members and certain business decisions. They also receive annual reports to learn more about the company. Owning stock in the company you work for can be a way to express loyalty and tie your personal finances to the success of the business as a whole.

 

[Alexandoy]

To be honest, I am not well versed with stocks although lately I have learned much when I received a grant of stocks. First is the dividend that the company gives out every year. It is minimal but still it is income for the holder of the stocks. Next is the price in the market that is somehow volatile at times with the rising and sinking. When the price goes up and up then you can sell for a good profit. My stocks have risen by 8% which is a good profit already although I did not sell because I do not need the money. Besides, I have not traded yet and I might waste the stocks if the price would continue to go up. The idea of trading is to buy when the price is low and to sell when the price goes high. But I am not a trader and my stocks are only for investment so I will only sell when I need the money.