Thursday, February 14, 2008

SHARE INVESTMENT

Ever since the trading in shares of financial ventures and the functions of Stock Exchanges commenced in the European countries, it was the monopoly of the affluent people and wealthy businessmen to invest in shares. As part of their deployment of wealth towards business purposes, to reap high harvests in return, they shared the capital needed for any business venture. Gradually with the advent of technological advancement like the internet marketing, most people realized that making investment in stock markets and securities is not rocket science and anybody with commonsense and prudence can do it for financial growth.In developing nations like India, China and South East Asian countries of Singapore, Thailand, Malaysia, Indonesia and Philippines it took longer time for investment in shares to get popularized. Today the scenario obtaining in these countries is very well encouraging and each of these countries has its own way of psychological approach to this best branch of investment of money. More and more people are getting interested to know what it is to make an investment in shares of public companies, big and small, to augment their financial position by gaining good returns on their surplus money. best investment,earn money,high return investment,high yield investment,high yield investment program,invest online,investing,investing money,investment advisor,investment companies,investment opportunities,investment property,investments,mutual fund,online investments,real estate investing,small business,stock investment Deposit in banks was the only way as a secure and safe investment of money once, but in the longer run people realized that this is a myth and the returns are too low and over a period of time the real value of their money gets eroded by soaring cost of living and inflation of economy. However the high volatility of share prices still keep people distanced from Stock Exchanges for fear that their investment will disappear totally if a slide occurs in a high magnitude. But the fact is the other way round. A wise investment made in shares after thorough scrutiny of the facts and figures related to it can really offer very good returns in the longer run, which any of the other investment channels can never come near. It is true that people hear news that millions of money go down the drain in a single day, when the share prices come down crashing. It should be understood that the money stated to be lost by the share market investors as reported by the news is only a notional thing and not real money. For example a share bought at a certain amount of money, goes up in value when there is an upward surge in the "Bullish" market and only this additional value added up by the upsurge goes when the slide occurs (known as "Bearish"), the base price of the share remaining as it is. Again this fluctuation in price is caused due to so many factors and over a period only. If the investor selects a stock market and a share of a company with sound financial backing, these temporary fluctuations will never take away the real value of the share. Over a period of one year, it can be seen that the value has increased spectacularly from what it was a year ago. This is the real calculator for the growth of the investment made and surely this is the best way to make use of the emerging Stock markets. There are hundreds of websites online keeping their doors open to educate a novice investor and lead them by their hand to the miracles of Share Market business.

A stock, also referred to as a share, is commonly a share of ownership in a corporation. A stock exchange is a market in which securities are bought and sold, and it is an essential component of a developed capital market. It is indispensable for the proper functioning of corporate enterprise. It brings together large amounts of capital necessary for the progress of a country. It is the citadel of capital and the pivot of money markets.There are two important types of trading on the stock exchange; namely, ready delivery contract and forward delivery contract. Ready delivery contracts, also known as cash trading or cash transactions, are to be settled either on the same date or within a short period that may extend at best up to seven days. Forward delivery contracts are discharged on fixed settlement days. Ready delivery contracts can be made for all securities, whereas forward delivery contracts are confined to those securities which are placed oft the forward list. Stock exchange transactions are made either for the purpose of investment or for speculation. Investment transactions are made with the intention of earning a return on the securities by holding them more or less permanently, whereas speculative transactions are made with the intention of making short term gains by disposing of the securities at favorable prices.Online stock investing is possibly the most widely used form online investment. You can invest in the stock market through the online brokers. You can do day trading, short term trading and long term trading according to your investment preferences. You can do equity trading as well as derivative trading according to your choice and amount of investment you are ready to make. You can even choose to buy fractional stocks that will let you make investments with significantly small amount of money. Online IPO Trading or Initial Public Offering is a great way to make profitable investment. Any online stock broker who is offering equity trading will provide you the options for buying IPO online. Stock trading takes place within certain parameters of a system. For example, you cannot directly buy the stock of any company from the company itself. You have to buy and sell its shares through a broker who is registered with the stock exchange where the company is listed. The shares are sold and bought at the market prices prevailing at a given point of time. Again, the price of the stock cannot be determined arbitrarily by the seller or the buyer. It is determined by a combination of certain market forces comprised primarily of supply and demand, which in turn, is linked with performance of the company

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