Investment Theory

Investing in the stock market offers both potential benefits and risks.

It's essential to understand these factors before you start investing:

Benefits:

Potential for High Returns: Historically, the stock market has provided some of the highest long-term returns among various asset classes, which can help you grow your wealth over time.

Ownership in Companies: When you buy stocks, you become a partial owner of the companies you invest in. This can give you a stake in their profits and success.

Dividend Income: Many companies pay dividends to their shareholders, providing a regular income stream in addition to potential capital gains.

Liquidity: Stocks are generally highly liquid, meaning you can buy and sell them relatively easily. This liquidity allows you to access your investments when needed.

Diversification: Through mutual funds or exchange-traded funds (ETFs), you can achieve diversification by investing in a broad range of stocks, reducing the risk associated with individual stocks.

Tax Benefits: Some countries offer tax incentives for long-term stock market investments, such as lower capital gains tax rates or tax-advantaged accounts.

Risks:

Market Volatility: Stock prices can be highly volatile, leading to significant short-term fluctuations. This volatility can be unsettling for investors, especially during market downturns.

Loss of Capital: The value of stocks can decrease, resulting in losses. It's possible to lose some or all of your invested capital.

Economic Factors: Economic downturns, recessions, or financial crises can negatively impact stock prices and the overall market.

Company-Specific Risks: Investing in individual stocks carries risks related to the performance and management of those specific companies. Poor company performance can lead to a decline in stock value.

Psychological Factors: Emotional reactions, like fear or greed, can lead to impulsive decisions and potentially poor investment choices.

Lack of Diversification: Concentrating your investments in a single stock or sector can expose you to higher risk. Diversification is essential to spread risk.

Inflation Risk: If the returns on your investments do not outpace inflation, your purchasing power may erode over time.

Time and Patience: Successful investing in the stock market often requires a long-term perspective. Short-term trading can lead to higher transaction costs and may not be suitable for everyone.

Information and Research: Investing in individual stocks requires research and analysis, which may not be feasible or comfortable for all investors.

Liquidity is used to describe how quickly securities can be traded.

Foreign investors already invest in the US, and have since the founding of the country.

You can find tips on how to choose stocks for day trading at the Investopedia website. Be warned when being told to purchase specific stocks as some people are just looking to inflate the price of them so they can dump their stocks.

You should know that few people are successful at Day Trading. Make sure that you are using money that you can live without; do not borrow money for investments. There are no sure things, particularly as a small player. Learn the craft with virtual accounts first and do not depend on an advisor--they make their money on commissions.

The stock market has generally been a good investment. It goes up and it goes down, but in the long term it goes up. Lots of people have profited from their investments in the stock market, even though sometimes people lose a lot of money if they make a particularly unwise investment. Remember that people who have large amounts of money need to invest it in something. If they just keep wads of currency in their safe, it will gradually lose value due to inflation. Money has to be well invested, just to retain its value.

Investors and money men are called financiers.

They might also be called backers, bankers, capitalists, lenders, shareholders, stockholders, and venture capitalists.

Technically, you need however much an ounce of silver costs when you go in to buy it. Coin dealers sell a "bullion coin" called the Silver Eagle that contains one ounce of sterling silver; you can buy one and say you have invested in silver.

One ounce ain't gonna get you far, folks.

In reality, serious investing in silver starts with 100 troy ounces of metal. And you're better off if you've got at least 1000 ounces of it.

You buy the stock you become an owner and you can choose to vote on decisions for the company or not but either way the company pays you dividends on their profits but a lot of people will buy from a promising company early when the stock is cheap and then sell them when they gain value.

by how much it was sold for...

A company would have to give out an Initial Public Offering or IPO in order to join a stock exchange market

Bonds are traded both in the primary market, which is the initial sale of the bonds, and in the secondary market, which is the sale of bonds subsequent to the initial sale by the issuer or underwriter.

Stock (equity) can be bought during the original first public issue by a company and by the secondary market (stock market)

SEBI stands for Securities and Exchanges Board of India. It is the governing body for all stock market related instruments in the country. No company is listed in it.

Companies are listed either in the NSE or the BSE which are the registered stock exchanges in the country

The best penny stock for 2011 is BGEM (BLUE GEM) although they distribute mostly in Florida they have a weapon that will make them richer then rich. This is TITLE of course the new all natural sports drink. Better tasting, better for you sports drink.

This company is very promising and Title is very promising too!

CONS: Attacking the Gatorade is never a good ideal. BUT someone has to come along some time and say what needs to be said screw gatorade....