Many of us attempt to invest to achieve financial freedom. There are various investment channels available, and one of the best known is the stock market.
Many would agree that stock investing can be a great way to increase your wealth and reach monetary goals. But the world of stock investing can be confusing and intimidating, especially to beginners.
We all started from the bottom and learned things along the way. That is why, in this article, we would like to show you how to invest in stocks.
Before we talk about how to invest in stocks, let’s start with the basics: what is the stock market?
A platform where investors can purchase and sell shares of companies that are publicly traded is the stock market, also called the equity market or share market. By getting into this market, businesses can raise capital by selling ownership stakes to the public in the form of shares.
When you buy a share or portion of the company, you then now have your own stock which lets you own a portion of the company. Your stock’s value will fluctuate according to the business’s performance and conditions in the market.
Investors are people or organizations that buy equities with a long-term vision in mind, looking for capital growth and dividends.
Traders are frequent buyers and sellers of stocks who actively participate in the stock market to profit from changes in prices that occur quickly.
Brokers are middlemen who help buyers and sellers exchange shares while getting paid a commission for each deal.
The stock market is not just about the publicly listed shares available to be traded at the stock exchange. There are also several types of stocks available:
Common stocks provide voting rights, ownership in the company, and the
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