How to invest in stocks
What is a Stock? Shares - are securities that secure property rights to some portion of the profits obtained as a result of activity of a particular company.
Such profits derived regularly called "dividends". Moreover, if you purchase such securities, you have the right to participate in the management of this organization, as well as the right to receive certain property after the dissolution of the organization.
Nominally, the person who has in his possession the action simply becomes one of the owners of the company and can manage its operations. But it is increasingly focusing on investors who are only interested in doing business participation . Those shareholders who invest significantly less money and are meant only to make a profit, have fewer rights.
As for profit, by investing in stocks you can get it in 2 ways: as well as dividends or profits from playing the stock price changes. If you are attracted to the first method, you is important to consider the classification of ordinary shares and preference shares.
When purchasing preference shares you are guaranteed a steady income that will be paid a small but fixed amount. With regard to investing in common stocks, this type is more risky, since there is no guarantee to receive dividends. But if the company whose shares you have made more money, you get a piece of it. In short, with little investment income from shares can be called a pretty good increase in their pension.
If you are interested in a second way, then you know it is important that this type has a greater risk because the prices may vary either higher or lower than the side. Thus, using this type of investment can be as huge profits and losses are quite large . Moreover, it is important to note that trade stocks only if you have extensive training, though not immune from the risk of even experienced market participants.
Answering the question "how to invest in stocks?", You can select another method which involves buying a share in the PIF. Each PIF inherently - a set of values ( including shares), which are held in trust. This form of investment is very nice and comfortable for beginning investors, as it gives you the opportunity to test their strength, using a small investment.
If you chose not to waste your time on the little things and be used for a large amount of investment, but at the same time do not have the necessary amount of knowledge, you can use just the same fiduciary services company.