Monday, 8 February 2016

Key Information on Stock Market Business- Money Classic Research

Many people head towards the stock market as it is a lucrative option for many traders. Stock market seems an avenue to many, where good wealth can be accumulated. However there are chances of incurring loss in the Stock Market venture. 

A stock is an actual share in the ownership of a business.  Speaking briefly, if a person buys a 100 shares of a company whose ownership is divided into 1 crore shares, then the person is the owner of 1/1 lakh part of the company. 

There are two ways to gain from your ownership of shares.  One is Capital Gains and the other is Dividend.  Capital Gains implies the Profit made by selling a share at a higher price than you bought, whereas the Dividend is the part of the Company’s profit that is distributed by the company.

Often people raise concern – Which is better, Stocks or Mutual Funds?  I think, for most investors, investing in equity mutual funds is a better alternative to get the gains from stock investing with lower risk and less hard work.  Unless you are prepared to devote considerable time, money and energy to become an expert stock investor, you should consider equity mutual funds for superior gains with much less pain. The Stock Trading is an art and it takes time to master the art.

When we think over “Investing V/s Trading”, it is to be identified that Stock investing encompasses two very different kinds of activities.  One consists of identifying fundamentally sound companies and then investing in them for a relatively long term.  The other consists of identifying trends in stock prices and trading in them for short period of time, in the hope of turning a large and quick profit.  The period may be as short as a few days or even hours.  The first is investing and the second is trading or speculation.  Trading is a high involvement activity that generally carries a high risk.  It is not really suitable as a saving medium.

The new traders can take the advice of the reputed advisory firms like Money Classic Research which provide accurate stock market tips. They provide accurate tips in the form of equity tips and intraday trading tips. Money Classic research is an esteemed organization which is SEBI registered and also ISO certified.  The company is having its head office in Indore. The investors and traders can contact them for any of their financial investments needs. 

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