Wednesday, 6 September 2017

10 Reasons to invest in stock market

Stock market- It is a place where shares of publicly listed companies are traded. The primary market is the place where companies float shares to the general public in an initial public offering to raise capital. If you are planning to invest in the stock market but still cannot make few reasons which will help you to take decisions for investing in stock market.
 Good Return- Investing in the stock market can fetch you huge return that is not possible from another source of investment if you have not invested in the right stocks. There are various cases where investors have gained manifold within the short period of time by investing in certain stocks.
Long term investment- You can invest in the stock for long period of time as well. If you are engaged in delivery based trading you can hold the stocks as long as you want. You can pull out the profits from long time investment in the stock market as this will give your stock enough time to appreciate.
Regular income with long term return- You can earn daily by trading in stocks while investing in that for a long term. You can buy a stock at the lower price and then sell it at the higher price and then again can buy stocks at the lower price and you can hold it for a longer period.
No lock in a period- If you compare investing in stock from other modes of investment where you can get the higher return, the stock market has no lock in period. Which means that you don’t have time barrier for selling the stock? You can hold the stock as long as you want or sell the stocks at the right time.
Earn from dividends- There are few companies that offer dividends at regular intervals. The dividend is distributed by the companies to distribute the profit among its investors. You can earn regularly from these dividend stock by investing in them at any point of time.
Benefit from the merger- When companies merge or one company takes over other company the prices of the stock increases regularly. This is a unique opportunity for the investors to earn from this situation by investing in companies that are about to merge with the other.
Bonus Shares- When a company plans for widen its operations or gather funds by opening new stock they offer bonus shares to the existing investors. These bonus shares are offered at significantly lower price than the present market value of the stocks. This is also a gain for an investor if they all wish to invest further in the company.
Take your own decision – When you are investing in the stock market you can make your own decisions regarding the extent and type of investment. So unlike other forms of investments, you can control your investment decision more actively.
Invest with little fund- If you have a small fund to invest in the stock market then also you can get a good return by investing in the stocks. There is no limit for investing in stocks with the small amount of fund which means you can actually gain a lot by investing in the penny stocks.
Wide options- When it comes to stock market you have wide options available. You can either do derivative trading or margin trading or you can choose the conventional route of delivery report.

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