If you have yet to gain investment experience and want your savings to proliferate, you can enter the investment market. And stocks are one of the most basic investment tools. As a newbie, you probably need to understand why so many people are willing to continue to invest money in the stock market. They know the risks even if they lose money in the stock market. Below I will give you a detailed description of the knowledge of the stock market where risk and return coexist, and at the same time, help you become familiar with the fundamentals of stocks.
In addition, investment vehicles are related to the economy, and people use almost every investment tool to make money, such as savings and funds. As one of the most common investment vehicles, stocks have unique advantages over gold, art collecting, and real estate in terms of standardization and many benefits.
The most significant advantage of stocks is that investors can reduce costs by paying very little commission. Secondly, you need to know that stock market protection is adequate and strict, and there is almost no error. And by acquiring multiple parameter data of the stock in real-time, you can experience the openness and transparency of the stock market. In addition, you can efficiently complete securities transactions with others through high-speed trading methods. The staff of the stock market are very professional and have high professional quality, which can help investors achieve portfolio planning and maximize the benefits of investors. From the perspective of the development of these decades and the income mode of shareholders, stock investment has gradually developed into one of the most basic ways to invest in the market.
The company pays dividends to shareholders who buy various shares to express their support and attract more investors. Investors can share the profits of each period with many large companies by buying shares. In addition, some companies may pay additional cash dividends to shareholders to maintain the loyalty of existing investors and stabilize their investment enthusiasm. However, you need to know that there are no laws or regulations that require these companies to pay dividends, and no laws or rules can regulate this. The company's profit-sharing behavior is generally spontaneous. Typically, companies balance dividends so they can still pay dividends when profits decrease.
You also need to know that there is a stock called income stock that can help investors earn a lot of dividend income and achieve rapid growth in wealth. Investors tend to buy yield stocks for ultra-high returns and spread their assets apart to avoid putting all their money into the bank. However, sophisticated investors not only want to make a fortune through dividends but also plan to receive additional funds through capital gains.
You must understand that capital gains refer to high-profit margins through fair share trading. For example, some investors are used to purchasing shares of companies with high potential because these stocks are often considered growth stocks, i.e., the price will get higher and higher over time. These growth stocks may be difficult for investors to receive dividends or dividends in the early stage, but this does not prevent the popularity of such stocks. These stocks provide investors with volatile but long-term capital gains compared to the steady payments of dividends.
In conclusion, in the stock market, you can earn a steady dividend income by buying stocks, just like putting money in a bank and the bank paying you interest. You can also invest large amounts of money in companies with growth potential, earning a good return on capital through the difference between buying and selling shares. In addition, a skilled investor is more likely to adjust his portfolio by combining the above two types of stocks to obtain as stable and lucrative profits as possible. But as a newbie, you need to keep your portfolio in a stable balance at first, and when you have some experience, you can pursue more complex combinations and higher profits. After all, buying stocks is taking a certain amount of risk while using your investment to make a profit.
