Share is
our ownership of anything that may be a company, shop, real estate, or anything
else.
More
specifically, Shares represent equity ownership in a corporation or financial
asset, owned by investors who exchange capital in return for these units.
Investors who hold shares in any company are
known as shareholders.
RISE IN THE SHARE
VALUE OF COMPANY=RISE IN THE SHARE OF SHAREHOLDERS = MONEY
Here are the key points of Share :
Common share possible returns through price
appreciation and dividends.
Preferred shares do not offer price
appreciation but can be redeemed at an attractive price and offer regular
dividends.
Most companies have shares, but only the shares of
publicly traded companies are found on stock exchanges.
The chunk of big money has always thrown investors into the lap of stock markets. However, making money in equities is not easy. It not only requires patience and discipline but also a great deal of research and a sound understanding of the market, among others.
We
have to be so much interested in the sharing and the company to invest in it
because the more the deep understanding of the market we have the more chances
there will arise that we can have financial benefits.
Many players are confused state that what will they do after they have gained money.
Added to this is the fact that stock market
volatility in the last few years has left investors in a state of confusion.
They are in a dilemma of whether to invest, hold or sell in such a scenario.
Although no sure-shot formula has yet been
discovered for success in stock markets, here are some golden rules which, if
followed, may increase your chances of getting a good return.
What are they then
Let’s have a look
No.1 Avoid the Herd/Crowd Mentality
Most people who belong to a middle-class
background have such a mentality that they love our money so they do invest in such
companies that our relatives or neighbor has invested in it.
The typical buyer's decision is usually heavily
influenced by the actions of his acquaintances, neighbors, or relatives. Thus,
if everybody around is investing in a particular stock, the tendency for
potential investors is to do the same. In the long run that would affect.
No need to say that you should always avoid having the
herd mentality if you don't want to lose your hard-earned money in stock
markets. The world's greatest investor
Warren Buffett was surely not wrong when he said,
"Be fearful when others are greedy, and be greedy when others are
fearful!"
No.2 Do a proper research
What we usually do is we do invest in any random company without any concern. We have to do proper research. I mean to say that you have to research that company and then a backlist of the old records of that company. How they performed in that days.
Proper
research should always be undertaken before investing in stocks. But that is
rarely done. Investors generally go by the name of a company or the industry
they belong to. This is, however, not the right way of putting one's money into
the stock market. Then, the share market is too risky as we said
No.3 Create a
Board portfolio of yours.
If you wanted to invest a generous
amount in stocks and you don’t have the ideas what companies are doing well. Then
simplify and diversify your investment. Because of this, the risk will very be minimized. The level of diversification depends on
each investor's risk-taking capacity. You barely have that loss
in this case scenario.
Diversification
of the portfolio across asset classes and instruments is the key factor to earning
optimum returns on investments with minimum risk.
No.4 Do not let your greed come into investment.
Open
Minded concept
Many
investors have been losing money in stock markets due to their inability to
control emotions, particularly fear and greed. In a bull market, the chunk of
quick wealth is difficult to resist.
Greed
augments when investors hear stories of fabulous returns being made in the
stock market in a short period
."This
leads them to speculate, buy shares of unknown companies or create heavy
positions in the futures segment without really understanding the risks
involved,
Speculation
doesn’t work on the share market buddy. It’s a reality, not fiction or hypothesis
this company will go ahead.
No.5 Invest in business you understand.
You
should always invest in that thing in which you have expertise. If not then
invest in the company which you understand. Never invest in a stock. Invest in a business
instead. And invest in a business you understand. In other words, before
investing in a company, you should know what business the company is in.
No.6 Concerned about the Taxes but don’t worry
Putting
taxes above all else is a dangerous strategy, as it can often cause investors
to make poor, misguided decisions. Yes, tax implications are important, but
they are a secondary concern. The primary goals in investing are to grow and
secure your money.
You
should always attempt to minimize the amount of tax you pay.
If
I talk about my country when we buy a share of in any company we got our
ownership. If I sell my share of any particular company then the government took
taxes from that share I got a certain %.
But If I hold for years then the tax will be deducted asap.
No7
Take risks that you can afford
Don’t panic Earlier I said that just
invest as much as you can. 20% of your income and Like that that can go higher
and lower accordingly.
But you should have the audacity to invest
and make good money from it.
Knowing one's risk-taking ability is not a
discount. Instead, it is a strength. It enables you to plan well and not
overexpose yourself to the risks in the share market. Here comes again the
importance of a well-thought-out share market plan.
Investing
in something is very crucial for today’s date because we can’t just rely on our
job or small business. Again if you start to invest from an early stage then
you can gain a lot of things from a such young age. This investing is a skill.
It requires a lot of dedication and patience as well as a clear mindset.
The
share market has a beauty i.e compounding.
If
you learn how compounding works then you know how to multiply money and money
management. To overcome inflation and grow the asset for further future start
to invest today.
Warren Buffett is widely considered to be the most successful investor in history.
There
are a lot of living examples who knew the depth of Compounding and are successful
today.
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