Stocks investment is a very important venture for both the rich and the poor in the society. Stocks investors are known to earn huge returns from their investment. However, for one to succeed in stocks investment, they have to first come up with a very clear strategy on how to do it. You should know how the business operates and how you can be able to get returns once you have invested. You also have to understand some of the available strategies on how to pick the best stocks. You should choose the best company in which you can buy stocks. There are numerous myths associated with stocks investment. These have to be debugged. In stocks investment, one can choose to trade via a local broker who is paid on a commission basis or online via a discount broker. This book is an excellent guide for you to understand how investment in stocks can be done. Some companies pay dividends to their shareholders while others do not. This book guides you on how to choose the best company in which to buy stocks.
Chapter 1- What are Stocks?
A stock is a share in ownership of a company. It is a representation of a claim or earnings
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Some companies will choose to pay dividends to their shareholders, while others will choose not to pay. In the latter case, the profits that the company earns are re-invested back into the business other than dividing it to the shareholders. Even if the company has been paying the dividends to its shareholders in the past, it is not an obligation for them to continue doing the same. When the company is not paying dividends, the investor will earn money on the stock through appreciation in the market. If the stock goes bankrupt, then your investment will not be worth.
Although you might be discouraged by the risk involved, there is a brighter side with the shares. This explains the reason they have outperformed other forms of investment such as savings accounts and