Why Trade In Stock Market

Why Trade In Stock Market, You do not need a lot of money to start making money, unlike buying property and paying a monthly mortgage.

It requires very minimal time to trade – unlike building a conventional business.

It’s ‘fast’ cash and allows for quick liquidation (You can convert it to cash easily, unlike selling a property or a business).

Primary market

  • Stock market is a secondary market
  • Trade stock for listed corporations
  • Progressive development of stock market

The primary market provides the channel for sale of new securities. Primary market provides opportunity to issuers of securities; Government as well as corporate to raise resources to meet their requirements of investment and/or discharge some obligation.

They may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity, debt etc. They may issue the securities in domestic market and/or international market.

Why Companies need to issue shares to Public

Most companies are usually started privately by their promoter(s). However, the promoters’ capital and the borrowings from banks and financial institutions may not be sufficient for setting up or running the business over a long term. So companies invite the public to contribute towards
the equity and issue shares to individual investors.

Equity Investment

When you buy a share of a company you become a shareholder in that company. Shares are also known as Equities. Equities have the potential to increase in value over time. It also provides your portfolio with the growth necessary to reach your long term investment goals. Research studies have proved that the equities have outperformed most other forms of investments in the long

  • Equities are considered the most challenging and the rewarding, when compared to other investment options.
  • Research studies have proved that investments in some shares with a longer tenure of investment have yielded far superior returns than any other investment.

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