Stock Market: Unravel The Secrets of Investment
The investment scenario of the world has taken a steep turn towards the stock market dynamics. Nowadays, Stocks, shares, equity bonds are the areas which are used by the people to gather wealth. Through the following deliberations I shall show you the beauty and tricks of investment in the stock exchanges.
Why Should You Invest In The Stock Market?
Entrepreneurs all over the world are feeling the adverse heat of capital shortage in financing a business. The business strategies and competition at every stage has made it tough for the banks to approve a loan to a person having low credits. Financing a business with low credit scores, both at personal and business strata cannot get you required money from the bank.
The stocks in general return a profit of 10% every year whereas other investments give a maximum of 7% return. Also the performance and the value orientation of the stocks are much better in most of the cases.
The shares of the companies can be a good source of revenue provided the investment is made with utmost calculations. The NYSE, NASDAQ, AMEX and every other stock organization controlling the dividends provides a fabulous investment scope for you.
If you will look at the record of profit margins of the stock business in the last 25 years you will find that the companies of higher means have been earning a profit of almost 1000 %( this is the maximum figure)! Yes, you heard it right and that is the very essence of venture capitalism in stock market finance. So, the inhibition which may be there initially to invest in the stock market will take a back seat if you start making some money out of it. With 3.5 billions of daily share trade in USA the world is witnessing venture capitalism at its peak! The mining stocks and the penny stocks are some of the lucrative areas of investment nowadays, especially when the rare earth metals are getting rarer..
Indian Stock Market and Sensex
26% of the oil demand in the country is met by the Indian manufacturers and so I hope you can gauge the importance of Oil company shares at the moment, especially when the usual reserves of the crude is at the brink of exhaustion.
The BSE 30 index of Sensex in Mumbai has a collection of companies which provides 20% of market capitalization. The Indian stock market is slowly getting on the run with the developed countries with its shares rated at the top levels.
You can also invest in the penny stock market if you have low capital cost. The investment of the penny stocks at $1 or less can be a very useful technique to buy several shares of various companies. Investment is all about risk but the trick is to invest tactically and optimally in the potential zones of the market. Sometimes the liquidity of the penny stock can create issues but the overall long term profit margin can really fetch you some extra bucks.
Do not waste time to invest in earning some real dollars!
This guest post has been written by John Kund. He is an avid blogger and a part of Gold Buying Genie which is one of the best online resource for Gold investors and Collectors.