Investment Stock Fundamentals

This article describes the basics of investing in stocks. It is a well-known fact that the market has transcended other asset classes such as property over time. Investing in stocks provides tax incentives, diversification, flexibility and control over your own financial future. Purchasing a stock (or stock) means that you are buying a stake in the company. You have a portion of your profits, and by paying dividends to shareholders, you can also see the capital growth when the stock price goes up. Companies benefit from being listed on the stock market, as they can finance their business or expansion plans without borrowing.

But before you start investing in any company stock, here are a few important questions to consider and answer to help assess your financial situation and future financial goals: What you want is what results from Investment shares to achieve? What kind of return do you want? Dividend income or capital growth? Do you know the risk? Are you ready to take the risk of investing your capital in the stock market in order to get a chance of return?