Have you always been wanting to grow, expand, and increase your money but don’t know how to do it?
While saving money can give you an ample amount of cash in the future, investing it instead will help your cash double, triple, or even quadruple in amount. Are you ready to take your savings to a higher level and make them grow through investments?
Investing doesn’t always mean building your own business/company or tying up with a business partner and having some large operation to manage.
You can easily invest your money in stocks and increase your savings basically overnight. Many people are starting to do this instead of just letting their money lie in the bank collecting dust.
If you want to invest in the stock market and you think that you still don’t know how to play the game of stocks, here are some of the basic tips that beginners need to learn on how to start growing funds and become a great investor in the stock market.
A Beginner’s Guide To Investing
The Concept of Buying Shares
Shares when talking about stocks means the number of pieces or the amount that you own in the company. When you buy shares of a company in the stock market, it means getting a percentage of ownership in that business.
For example, an established company needs $500,000 to expand its business. The corporation divides the company into 5,000 pieces. The pieces are what we call “the shares” that will be sold to investors. In this example, each piece or share costs $100. If you want to invest in that company and you have $2,000 at hand, you can purchase 20 shares of that business.
Profiting from Shares
Let’s assume that you spent all your $2,000 in the example company to buy 20 shares. If the company earns $250,000 in one year, the profit will also be divided into 5,000 which means that each share sees a $50 profit.
Now, you have 20 shares, so your $50 is multiplied by 20, and you’ll gain an increase of $1,000 from your stock market investment. The profit you gain depends on the number of shares you bought.
Buying Shares from Different Companies
Investing in the stock market doesn’t constrain you to invest in only one company. You have many options to choose from, and you can try putting your investments into many baskets. However, remember that different companies have different performances and so, they gain different profits throughout the course.
Some may be higher, some may be lower, while some may not gain any profits. Before putting your money into a company, you need to check the financial portfolio and see if it is worth your investment.
You may put your savings into one company and gain all the profit when the income boosts, or risk your investment when it doesn’t grow. You may also want to distribute your investments and buy a few shares in many companies.
Start Investing Now
They say that the best time to plant a tree was 20 years ago, and the second best time is now. Expand your savings. Learn the basic steps of stock market investing. Seek advice from experienced professionals. Invest in stocks today and increase your value.