What is a stock and why should you invest in it?

Business

A share is a certificate that proves that you own a fraction of a business or corporation. It shows that you have bought a part of that company and that you pay a certain percentage of the company, be it salary of its employees, expansion projects, buildings, loans, etc. Once you own a share, you are known as a shareholder or shareholder. Simply put, a stock is the representation of how much you own in a company. And with every share you own, it gives you a little voting power. The more you own, the more you have to say about what the business will do and what you need to do so your money doesn’t go to waste and grow. That being said, why should you invest in stocks and become a shareholder?

Investing in a business or corporation provides you with a lot of benefits and is more likely to help you in the long run, as long as you invest in a good company that doesn’t waste your money. Did you know that investing in a company gives you much more profit than investing and depositing in your bank account? When you deposit into your bank account, it grows a measly 1% a year. I know it’s not much, but you say you win exactly without doing anything, right? In reality, you are not winning. Every year, the value of money depreciates by 2-3%, which means that you are not making a profit and your money is also losing its value. But when you invest in a company with an overall good reputation, your money is sure to grow 4% per year. Therefore, even with 2% of the value of money depreciating each year, your money will continue to grow by 2%.

So do you really make money from this? Well, eventually you will. When you invest, you take a risk. You are risking your money for an outcome that cannot be fully predicted. Do you remember why I said many times in this article that when you invest in a good company your money will not go to waste? This is why. The world market is a very unstable and volatile market. You can go up in one day and go down the next day. You will never know what will happen. Even in minor markets, things like this happen. The outcome can hardly ever be predicted. But you can help yourself avoid falling victim to failed investments. Before investing, do your research. If a business is new, do a background check on who runs the business or organization. Who are the people behind this? Are they reliable and hard-working? The next step would be to fight for your money. Buying a stock or shares in a company gives you the right to speak and appear at meetings and give them an idea. Tell them what you think. Don’t let them decide for themselves why they are still using your money and your money is important to them.

I hope you have learned something about stocks and investing in them.

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