Requirements and Advantages in Investing or Buying Stocks from Stock Market

Before you start investing your money to buy stocks at the stock market, there are things that you should know to guide you and help you maximize the gain and see to it that you are in safe and gaining. Because there are also risk in buying stocks, we should let you know some very important reminders.

Here they are, read slowly and absorb it quickly;

• Requirements for investment.

You must have the minimum amount required by the broker and the minimum requirement of the company whose stocks you want to buy. An example for instance, an established fast food chain, the minimum number of share that you can buy from it is 15 shares, at a cost of P85 per share. Meanwhile the lowest amount required by your broker is around P5,000. So you  would have to buy 60 shares of that company to reach your broker's minimum investment. (60 shares x P85/share = P5,100)

• Means to multiply your investment.

You will earn from the stock market through capital appreciation and dividends. In capital appreciation, the value of your investment increases, based on the rise in the market price of your stocks.

But you have to take note that market price is affected by supply and demand. the potential of a stock to increase in value depends on how the company operates in the business environment. If the business is good, its stock price subject to go up. If the general business climate isn't good, prices of stocks subject to go down.

The dividends earned by your money, can give you percentage of annual profits that a company pays to its stockholders. Dividends are good for those who wish to retire soon. But if you want to fully maximize your investments, it is better to go for capital appreciation, or buy more stocks by adding more money.

• Learn to maximize your investment

Put your investment centered to your personal goals. Know how long you wish to stay in the market. You can quit and sell your stocks if you think your investment are no longer working for your advantage, or when you have already met your personal goals.

Invest in defensive stocks, or companies with good business fundamentals and therefore have very good chances of earning. Companies engaged in telecoms, information technology, aviation, utilities and basic services are considered defensive stocks.

Continue learning about it and other businesses. Investing is not risky, but there are risk involved. you must manage the risks. put an end on every peso you earn.