Buying shares is a form of investment. People do invest because of various reasons. Some do it out of concern for their future while others do it because they have extra cash and they want to put it in an investment. Setting up an investment is easier compared as before. Nowadays, you can invest online by making a phone call, which basically makes the transaction much faster.
If this is your first time investing, you have to familiarise yourself with the terminology, how it works, how you can earn from it and how much you can earn from it. Are you tired of the small interest rate of your savings deposit? Investing in stock market is like a game where you have to bet on the market, not knowing if you are going to win or not. How do you identify which stock is profitable? Can it stand an economic crisis? The stability and profitability of a stock or share is very important. So where do you put your money?
Buying shares from big banks is paying off well. It is a profitable form of investment on which you can earn up to four times the value of your money. That is a huge difference compared from regular savings deposits which only earn 2.5% interest rate. The rates are not expected to increase in the next few years. So you cannot expect greater income from it.
Buying shares is a bit risky especially if you can’t afford to lose the amount of money you have invested. The stock market’s movement is affected by the law of demand and supply, and other factors. Economic crisis can happen and anyone can be affected by it especially investors. Yes it is quite risky; you have to be careful where you put your money. Bank dividends continuously grow and it would take another recession or economic crisis for it to decrease. The stock market is quite stable; this is the reason why investors who seek for greater dividends capitalize on it rather than on bank savings.
Before you invest, make sure that you deal with full service brokers. These brokers must provide information, tailored investment plans and make recommendations. Buying shares or stocks is a little tricky for beginners; make sure you are guided by the right people who have extensive experience in this field. Always talk to your broker and discuss the price of shares before you buy or sell your shares.