Hello everyone, at this time we have something to talk about that will actually gather additional ideas or knowledge from anyone who is involved in the topic. Come on, and let’s discuss the STOCK MARKET together.Do you want to make money in the Stock market or invest in it?
Stocks vs. Banks
Let's see the difference when you put money in those two. For example, A and B both have money worth 50k$, A puts his money in Stocks and invests in another company so that it can grow even more or give him income and within a year the 50k$ grew 7% to 53,500$. While B put his 50k$ savings in the bank and grew 0.125% in a year and became 50, 062.50$, let's not include fees or tax so we can easily understand how we compare them to one another.
So if we look at the two, it is much easier to grow our money in the stock market. But that doesn't mean we don't need the bank anymore, we always need the bank for cash or a bag for our emergency funds. But I also want to clarify that not all the time we can always earn 7% in the Stock Market, because it still depends on the inflation rate that we have, which you must be willing to gamble your capital in thIS matter.
Now, is there still anyone have a little confused about how to make money here in the Stock Market, or what is it?
What exactly does the Stock Market mean?This is the market where people can buy shares or stocks of a company that you can be a share holder of well -known Malls or fastfood in the business industry. Just imagine that a company is divided so that the other public can also invest in this company. It’s like like a big whole Pizza that is broken down for others to eat as well. The company did this so that they could risk more money and it grew even more with the help of people or investors like us.Referrence:
https://en.wikipedia.org/wiki/Stock_marketHow to make money in the Stock Market?
There are two ways to make money in the stock market.1. Dividends - this is the cut or income that the company you choose to invest in can give you. It’s not quarterly or annually. So, basically this is what you can get from a company that can be cash or stocks.
Source:
https://en.wikipedia.org/wiki/Dividend2. Capital Gains - this is where you earn when the value of the stocks you buy suddenly increases. For example you buy 1000 shares in KFC and the value of each share is 20$ so the total is 20k $, then after a few months or years it becomes 50 $ per share the former 20k$ will be 50k$ the shares. So if you sell that, you will earn 30k$.
source:
https://en.wikipedia.org/wiki/Capital_gainTypes of stocks and why should you invest in the stock market? But let's add other classifications to understand it better.
Common stocks - These have voting power or large shares in a company.
Simply put, each share of common stock represents a share of ownership in a company. If a company does well, or the value of its assets increases, common stock can go up in value. On the other hand, if a company is doing poorly, a common stock can decrease in value. Common stock allows investors to share in a company's success over time, which is why they can make great long-term investments.
Referrence :
https://www.fool.com/investing/stock-market/types-of-stocks/common-stocks/Preferred stocks - There are very few of these but they are more focused on dividends and you do not have the availability to have voting
rights.
Preferred stock yields can be fixed or vary based on a benchmark interest rate. Preferred stocks can exist in perpetuity or have a set maturity date when the company pays investors the original (par) value of the shares and they are retired. And, like bonds, preferred stocks may be callable, meaning the company has the right, but not the obligation, to redeem the shares at a certain date if it chooses.
Referrence :
https://www.fool.com/investing/stock-market/types-of-stocks/preferred-stocks/Other types of Stocks https://www.fool.com/investing/stock-market/types-of-stocks/I hope this could give help to everyone here in the forum in some other way,
Have a good day and God bless us all.
