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0 Stocks, also known as shares or equities, might be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership stake in a publicly-traded company. Many of the biggest companies in the country are publicly traded, meaning you can buy stock in them. A stock represents a share in the ownership of a company, including a claim on the company’s earnings and assets. As such, stockholders are partial owners of the company. When the value of the business rises or falls, so does the value of the stock. Some examples include Apple, Microsoft and amazon.
If you are expecting good return of investment in stocks, you need to do homework of that particular stock. When you buy stocks in low price rate and sell in high, you book a profit. When you buy in high rate and sell in low price, you are in loss. There is also a risk, how much amount you are willing to invest in stocks depends. High amount high risk and high profit, low amount low risk of loosing high amount and low profit.
Some of the tips you need to know before investing in stocks are as follows:
- Company profile completely–what they do, where and how
- Dividend paid in recent years of the company you looking to buy stocks
- Consult with professional investors-it is better to know more informations about the company from various people
- Company’s earning ratio, previous performance before going to public
- Stock chart- everyone should have knowledge of the stock chart
Common Stocks
Looking to make money:
When you buy a stocks, you’re hoping that the price will go up so you can then sell it with good profit. The risk factor is that the price of the stock could go down, in which case you’d loose money. Focus on the point of sell after buying stocks to cover risk.
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