There is no rocket science or super natural tricks in stock market affairs but it’s also not a kid’s play. Stock and shares deals can be much profitable if investor just look for the stock market essentials. You should not act too desperately technical in stock market because there is only a need to behave normal as everyone does in business.
It can be well understood from the practical examples of a person who goes to some property dealers and buys a piece of land and waits until its worth rise. In addition to that, when a businessman needs more capital he comes across many options to raise money from market as:
- He may choose to borrow money from lending organizations.
- He can go for Issuing Company’s bonds or shares in market with include a specific interest rate.
- He can Issue and float stock in general public.
Now a days, so many banks and financial institutions are working to facilitate small businesses and entrepreneurial ventures. They give loans and charge interest rate according to the risk and nature of business. The second option involves issuance of shares and bonds. Share holders are people who pay for their shares and then become a part of loss and profit of the business. The rates, on which shares are sold, are called face value and can be sold in future with the premium amount. The other option for a company is to go for initial public offering (IPO). Practically companies’ float only up to 49% of the company shares and remain 51% is kept in its ownership.
Usually brokers act as middle man to purchase and sale share and stocks in market. But you can save their brokerage fee by direct dealing with the company. It will also give you a deep insight about actually rate on which stocks are being purchases and sold. But for this you have to be vigilant enough and adopt a systematic way in trading of shares as it’s a time game.
We are providing you some basics of stock market and trading which will help the beginners get the maximum return out of their investment without involving any broker in the deal.
Tips for stock market beginners:
1. Firstly, you should go and understand some basics and knowledge about stock market, and then after making thorough analysis, choose the specific industry or market in which you are interest to invest.
2. After this make a study of background, previous market record and industry trend of the companies and their management style.
3. Then start and keep tracking the company’s stock trend. Soon you will get an idea about its position.
4. Now lastly make a decision about the type of investment that how you’re working to capitalize the company. Type of investment also depends on the time period for which you want to keep the shares with you i.e. you can make rapid trade with market fluctuations or hold them till the growth of the company.
It’s a time consuming activity but once you will take interest you will find it easy and simple. Invest in the stock market because it’s the only short cut to become a tycoon.