Pros and cons of the nature of the stock market don’t have to be confusing to us, as many people who are interested in investing in stock market are afraid that they have to understand a complete range of stocks and marketing terms
But some people could saw behind the appearance of all these economic nonsense, and saw the potentials of what they could get from investing in the stock market.
In simple way, the stock market is the market to buy and sell stocks and shares. This is where company stock gets traded. The term is also used to describe the totality of all stocks in one country. That is why we hear reporters talking that "the stock market was up today" or that "the stock market went down after the poundsterlings fell to the dollars."
So what are the pros and cons of the stock market?
We need the stock market because it is an important factor for the country economics system to operate. Through the stock market, companies will improve their financial feasibility and expand their operations by raising funds from selling their stocks. Without the stock market, our companies become slower in their growth and might stagger in the increasing competition in the US as well as against international companies.
Another reason for the existence of the stock market is that it also has a role in personal financial planning, because many individuals buy stock shares as part of their personal financial strategies. More importantly, most people, especially Americans have a stake in the stock market because retirement programs invest in stocks. It has shown that retirement programs earn a lot more by investing in common stocks than other options such as saving the funds in banks.
Of course, the stock market also has its downsides. Remember that the stock market is not a tool for immediate success. True, there are stories of one getting wealthy by investing in the market, but this involves investing shares in various company stocks, which means a lot of research, time, and money. Investor also gets rich when some stocks become "hotter" such as the "dot-com" bubble in the nineties, but when the initial buzz around these stocks stagger, the value of these stocks tend to crash.
But some people could saw behind the appearance of all these economic nonsense, and saw the potentials of what they could get from investing in the stock market.
In simple way, the stock market is the market to buy and sell stocks and shares. This is where company stock gets traded. The term is also used to describe the totality of all stocks in one country. That is why we hear reporters talking that "the stock market was up today" or that "the stock market went down after the poundsterlings fell to the dollars."
So what are the pros and cons of the stock market?
We need the stock market because it is an important factor for the country economics system to operate. Through the stock market, companies will improve their financial feasibility and expand their operations by raising funds from selling their stocks. Without the stock market, our companies become slower in their growth and might stagger in the increasing competition in the US as well as against international companies.
Another reason for the existence of the stock market is that it also has a role in personal financial planning, because many individuals buy stock shares as part of their personal financial strategies. More importantly, most people, especially Americans have a stake in the stock market because retirement programs invest in stocks. It has shown that retirement programs earn a lot more by investing in common stocks than other options such as saving the funds in banks.
Of course, the stock market also has its downsides. Remember that the stock market is not a tool for immediate success. True, there are stories of one getting wealthy by investing in the market, but this involves investing shares in various company stocks, which means a lot of research, time, and money. Investor also gets rich when some stocks become "hotter" such as the "dot-com" bubble in the nineties, but when the initial buzz around these stocks stagger, the value of these stocks tend to crash.
