Shares/Stock Are Stocks Good Investment?

Mika

VIP Contributor
When it comes to investing, a lot of people prefer to invest in the stock market. Generally speaking, there is one main reason for this: you do not need a lot of money. You can invest with a small amount and gradually build your investment portfolio by regularly investing and compounding your interest.

Some people say stocks are a risky investment. If you are one of these guys, you can invest in the stock market through ETFs and Mutual funds and take the benefit of stock market with minimal risks.

As opposed to popularly held belief about stock market investment, Robert Kiyosaki says stocks are not a smart investment, the owners of these companies become rich with your money and you get just peanuts in return. The companies raise funds by listing them on the stock market, and they suck money out of your pocket. The author of Rich Dad Poor dad even says buying a house is not an asset, you pay money to banks for 20-30 years, and you make the banks rich.
 

Suba

Moderator
Staff member
Before answering your question, I will try to explain some of the advantages and disadvantages of buying shares in the capital market. If you are new to the world of stocks, you should choose first-tier or blue-chip stocks, even though the price of blue-chip stocks is expensive, you will get high dividends and you will also get capital gains. You cannot invest in small amounts to buy shares on the stock exchange market, at least 1 lot or 100 shares (there may be differences in the number of lots for other countries). It's different if you invest in mutual funds, and financial management is carried out by an investment manager, with little risk. Meanwhile, if you buy shares in the capital market, you will bear all the risks and profits yourself. Some stock risks such as capital loss, liquidation. So answering your question, stock investment will be profitable for those who understand stocks as a whole and can read and analyze financial statements, including the factors that affect stock prices.
 

King bell

VIP Contributor
The stock market is a great place to invest your money. You can make a lot of money if you know what you are doing. However, you can also lose a lot of money if you don't know what you are doing.

There are many different types of stocks, and each one has its own risk and reward. You need to carefully consider each stock before you invest in it.

You also need to have a clear investment strategy. Are you buying stocks to hold for the long term, or are you looking to make some quick profits?

Whatever your investment strategy, you need to make sure that you understand the risks involved. Investing in stocks is not a sure thing, and you could lose all of your money if you're not careful.

If you're thinking about investing in stocks, do your research and talk to a financial advisor. They can help you develop a clear investment plan and choose the right stocks for your portfolio.
 

Yusra3

VIP Contributor
Stock investing is a great way to increase your wealth and diversify your assets. It's important to remember that investing in stocks is not the same as owning a company or other types of investments. Instead, it's more like owning stock in a corporation that owns shares of other corporations.

When you invest in stocks, you're essentially making an agreement with the company or corporation through which you purchased your stock. You'll receive dividends from that company as well as any interest payments made by the company on their debt. These payments will come from profits made by the corporation, or "banked" profits, which means they're set aside for use later by the corporation.

With this type of investment strategy, you're not buying any physical products from companies like Apple (AAPL) or Microsoft (MSFT), but instead receiving interest payments based on how much money those companies have saved up over time (in banked profits). This means that if Apple goes bankrupt tomorrow and stops paying its shareholders interest payments, then your stock would plummet with it. but at least it would still be worth something!
 

Mastergp

Verified member

Stocks can be a good investment for some people. They offer the potential for higher returns than other types of investments, such as bonds or savings accounts, but they also come with higher volatility and risk. Historically, stocks have provided an average annual return of about 10%, but the actual return on an investment in the stock market can vary greatly depending on a variety of factors, including the specific stocks that are purchased, the timing of the purchases, and the overall performance of the stock market. It is important to do your own research and consult a financial advisor before making any investment decisions.

Stocks represent a share of ownership in a company, and as such, they can offer the potential for investors to share in the company's profits through dividends and capital appreciation. In addition, investing in a diversified portfolio of stocks can provide a hedge against inflation, as the returns on stocks have historically outpaced inflation over the long-term.
However, investing in stocks also carries risks. The stock market is inherently volatile and can experience significant fluctuations in short periods of time, which can result in losses for investors. In addition, the value of an individual stock can be affected by a variety of factors, including the company's financial performance, changes in the industry in which it operates, and broader economic conditions.
It's important to also note that not all stocks are the same, They have different risk and return characteristics, Small-cap and emerging market stocks, for example, tend to be more volatile than large-cap stocks, but also offer the potential for higher returns. Also it is important to diversify the portfolio across the different type of assets, such as bonds and real estate, to better balance risk and return.
Given the risks and potential rewards, stocks may not be suitable for all investors. It is important to consider your individual financial goals, risk tolerance, and investment horizon before deciding whether or not to invest in stocks. It is also recommended to consult with a financial advisor before making any investment decisions
 

Jasmine

VIP Contributor
Stocks can be a good investment as they have historically provided a higher return compared to other investments such as bonds over the long-term. However, investing in stocks comes with risks as stock prices can be affected by various economic, financial, and political factors. It's important to consider your personal financial goals, risk tolerance, and overall financial situation before making investment decisions. It may also be helpful to consult with a financial advisor to develop a diversified investment strategy. You will also have to minimize your investment risk by diversifying your stocks (buying form various companies as opposed to one company).
 
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