The main reason people invest in common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price and sell it at a higher price at some point in the future.
Keeping this in consideration, what does it mean when you buy a stock?
Most people realize that owning a stock means buying a percentage of ownership in the company, but many new investors have misconceptions about the benefits and responsibilities of being a shareholder.
What is to buy a stock?
The market is the vast array of investors and traders who buy and sell the stock, pushing the price up or down. The ultimate goal of buying shares is to make money by buying stocks in companies you expect to do well, those whose perceived value (in the form of the share price) will rise.
How can I earn money from stock market?
To make good money in stock markets, one should practice the fundamental method of investing.
- Try and avoid the herd mentality.
- Never try to time the stock market.
- Have a disciplined approach for investment.
- Never let your emotions influence the judgement.
- Always have realistic goals.
- Always invest your surplus funds.