4 Advantages of Stock Market Investment

Posted by admin on Jan 24, 2011

After we learning about the myths of stock market investing, let’s break the myths by justify the advantages of this investment vehicle, for our personal financial planning portfolio

1. Profitability.
The stock market investment, as we have discussed is the most profitable investment once assumed the risk. A bank’s term deposits can offer between 3.50% and 4.5% return. True, time deposits are what we call safe investments and therefore are less profitable. The profitability in stock market investment can be 25%, 40% and in some cases 150%, but never forget to take risks.

2. Diversification.
The stock market investment allows you to both risk and diversifies your investments, may participate in the purchase of shares of several companies at once. In these cases, an investment can cover losses with profits from another wise investment. You also have the opportunity to participate in companies and stock in other countries.

3. Liquidity.
At the time you need your money, you can arrange it, having the advantage of being able to sell those shares at any time you consider not going to be profitable. This is one of the major advantages of investing in the stock market. You do not have penalties for withdrawing your money early or sell your shares. Moreover, to get your money in dividends, you must not do anything but order the payment to the account where you want to enter such dividends.

4. Monitoring.
All movements of your money and the value of shares can go across multiple Internet platforms. At all times you know if your shares have risen or are down and of course, as we discussed in the previous section, you can buy or sell in a matter of seconds.

As a disadvantage when invest in stock market, only name that being an investor. Become investors is a career like any other, in which to do it that so many people struggle. Read and be informed of financial and economic news.

Please leave your comment for any opinion.
Happy Investing

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