Stocks are a form of ownership; they represent participation in the company’s growth.
Many investors use stocks of companies in industries related to a commodity in some way or the other. Equities are less likely to undergo volatile price swings as compared to futures. It is easy to manage, buy, hold and trade stocks. Another efficient way of investing in stocks is stock options, what’s the difference? Stock options require a smaller investment as compared to buying stocks. While risk is restricted to the cost of the option, the price movement will not, usually, directly mirror the underlying stock.
So if you want to enjoy having partial ownership in the company and the benefit from the unlimited potential of a rising stock price, then you should invest in our stocks’ trade. The stock trade also gives you the minority ownership under which you enjoy the right to vote and give your opinions at the corporate level.
What are the advantages?
- Investors usually own a brokerage account, making trading easy.
- Public information on a company’s financial situation is readily available.
- The stocks are liquid.
- Stock ownership benefits from a growing economy
- Stock trading is the best way of remaining ahead of inflation. Historically, stocks have averaged an impressive annual return of 10% (which is better than the average inflation rate of 3.2%)
- The stock market allows you to sell your stock whenever you wish. That’s important if you suddenly need your cash!