Investing on Shares FAQs

Gaining financial stability is what we all want to achieve in our lives but what do we want to do with the money we earn? – That is the question.

There are a lot of things that you can do. You can save your money but you can’t really ensure growth and you’ll never know if it’s enough.

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You can open up a business but you can’t assure that money will come back as much as you want to. The market is a big battle field. One day a business might come to take down yours. Is it a good idea? Yeah but that is if you’re a good businessman: you have to make an effective business plan in order to be successful.

So what else can you do with your money?

Spend it? Bad idea but it’s satisfying at first I must say but the after-feeling is not so rewarding but that’s okay really if you have a stable job and enough money for spending. But imagine this, the money you spend for leisure, save it then put it somewhere or in the hands of fund manager then watch it grow. “That” is a rewarding feeling: Watching what you worked for developing. This act is called Investing.

If you’re going to be a successful investor, you don’t have to work anymore at all. You just have to rely on your stocks and bonds and even business if any. It is possible that let’s say your $10,000.00 you invest in a growing company can become $1,000,000.00 in a year. You just let your assets work for you and the money you invested continue to generate more money given the right playing field.

Stock Investments

You see, you can invest in a lot of ways but one thing is always better than the other. But one good investment you should consider is on stocks.

In the financial scene, investing on stocks had been proven to be the greatest investment that is – long term. It always earns better results than having government bonds or corporate bonds for example.

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Just a friendly warning, investing on stocks is a bad idea if you’re just a short-term investor but if you think you can last up to let’s say a decade of investing on stocks then that is a rewarding price for you as an investor.

A successful investment will always have a return. Annual Income is the first one and self-explanatory and long-term capital growth which is basically a strategy pertaining to asset allocation that looks to expand capital appreciation or in another explanation is to add value to an asset or portfolio in a long term.

For The Company

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Shares proposal mostly come in a form of dividends. This is usually paid two times a year. It can be a form of a reward as well for shareholders though which they are paid when a stock is profitable and has enough savings after all processes. The company which is more profitable often gains more dividend payments as well. If a company earns enough of money and generating important dividend payments, it can be called a good investment and as a result – share rises.

All companies that pay the right and equal amount of dividends are known as income stocks.

So that’s pretty much about it! Ready to take your next step? But first, you need to review every article here in Trade12Basics and after that, start becoming an investor and trade with Trade12.

This post is shared with Trade12reviews

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