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Why Buy Stock

Why Buy Stock?

The question of the century for many would be businessmen and women may be why on earth would anyone buy stocks? Quite frankly the question should be why on creation wouldn't they? Owning stock in a company means that you have stock in that company. You have an investment, however meager, in the success also failure of that company and for this impetus you have a little bit of mastery in the company as well.

Many people purchase stocks for many different reasons. There are about as many reasons for the purchases as there are people. Some people hope to accumulate a large equivalent of stock within a company so that they may take over some level of power within that company. This is not always the case though in most companies those that own large quantities of stock do have a bit of a voice when it comes to the decisions being made concerning the future of the company ( companies are responsible to those that hold shares of stock after all ).

Others want to own a little piece of a company that produces a product they believe in. I love chocolate. For me, it makes perfect genius to invest money in Hershey stocks. It's a product that I believe has a solid future ( I further happen to know a lot of other chocolate lovers ), an desirable product, and real potential for new products, and an eye on emerging markets. These are things that those purchase stocks should look at before buying stock. At the alike time, I pick up that Hershey stocks are very established and any earnings on my few stocks are going to be minimal. At the same duration, this is a very stable stock that is likely to bring in some money tour after year. Not a sprint stock to be sure but an reverie stock that I get a kick out of including in my portfolio. In other words, some people buy stock simply because they like the product.

Day traders buy and sell stocks like some of breathe in anticipation of making jack and not anything more ( well for the most part, some do it for the rush and the thrill of the hunt for those elusive stock market moments of triumph ). Of course glaringly people buy stocks in hopes of ample returns on their investments, some just expect more immediate returns than others. Day trading is a drive through type of investing compared to the long lines that people stand in inside waiting for the long term payoffs that retirements are funded upon.

You will find as many reasons for investing, as you will find reasons to purchase stock. The questions you should be finding out for yourself is why people by certain stocks and that is question that is going to be individual to each person for each stock they purchase. There are no occultism formulas for win though there are many things you can do to lessen the risks of failure when investing in stocks in bonds.

If you are interested in investing in stocks your introductory stop should be the library. There are many books on the history of stocks, financial planning, and that proposition excellent help on building a portfolio. Once you have a few questions in mind you should take your savings and your questions to a reputable stock broker and create a strategy that is tailored to meet your investing needs.


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