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Bankvest.com - Stock Investing |
The goal of stock investing is to generate better returns over other assets classes such as cash and bonds. By investing in stocks, a stake in a company is established. The price of each share will rise and fall on the fortunes of the corporation. If the corporation constantly increases revenue and profits, its shares will increase in value since investors want a stake in a successful company. However, if the company is stagnating, expect its shares to trade at a discount.
Smart stock investing involves picking the companies that will increase shareholder's value. These companies are usually dominant competitors within their industry, are growing profit and are run by executives focused on bettering the company. Good stock investing is not being lucky but finding well managed companies.
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Most Active Stocks: Nasdaq National Market |
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| Small Cap Indices
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| Major Indices
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| Do's and Dont's of Investing |
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The Do's |
| Determine if the stock meets your long term investment objectives before buying. A good company tends to appreciate over the long run. |
| Consider dividend stocks. Companies that pay out dividends tend to generate attractive shareholder returns over time. |
THE DON'Ts |
| Buying a stock after it appears on the front page of various business magazines. By this time, investors have already discounted most of the good news. |
| Over diversifying your stock portfolio. Investing in too many stocks could nullify returns and make your portfolio difficult to manage. |
| Investing on a stock on a whim. Before putting your hard earned cash on anything, the proper research needs to be done to evaluate the risks. |
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