Updated: Sep 15, 2020
US Investment Advisor | Raleigh Investment Consultant, LLC
Why Should You Invest in Stocks:
The giant screens with numbers constantly changing, the busy air around these screens, and the statistics holding up the shares; the stock market is an interesting world on its own. Do you ever get intrigued by it and wonder what all the hype is about?
Well, the buzz is due to trillions of dollars in the stock market. The U.S. stock market, which is currently the largest stock market in the world, is worth nearly $34 trillion. The stock market has offered the most growth potential compared to other investment tools over the years and investors have gained generous profits from stocks.
We understand that this might not be convincing enough for you to invest your hard-earned money and that’s why we have listed 5 reasons why you must invest in the stock market.
It’s easy to invest in the stock market
While it might look daunting to invest in the stock market, it isn’t. All you need to do is set up an account in the stock market online or via your investment advisor or a broker. The commission costs are low to zero and many online brokers offer free trading. They even offer simulated platforms for you to practice.
However, taking some informative educational courses on stock investments will help you understand its dynamics as well as help you generate increased returns on your investment.
You can maximize your wealth
We’ve already mentioned the growth potential of stocks but let’s talk about it in more detail. Although the prices of individual stocks increase and decrease daily, the value of the stock market tends to rise in the long run. Despite the economic slow-down and crises in the past, the average annual return of the stock market is recorded at 10% and is expected to bolster in the future.
If you do your research about stable companies and diversify your investment across different sectors in the economy, your investments will result in significant profits, even with the daily fluctuations.
You get the dividend income
Most stocks offer dividend income to their shareholders, as a reward of sorts for them. Companies typically pay dividends twice a year when it has generated profits after meeting all its obligations. So by investing in stocks, you can get a regular income through dividends without selling your assets.
Stocks are liquid assets
Liquid assets can be converted into cash quickly with minimum transaction costs. Since stocks are liquid assets, it’s easy to sell them at any time, whether you’re selling them for profit or you’re selling your low-performing shares.
You have ownership stakes in a company
Buying stocks means you have ownership stakes in the company so you can exercise some rights of a business owner. As a shareholder, you can vote for board members and for other important decisions of the company. If you’ve always wanted to be a part of the business world, The stock market is your way to understand the functionality of it.
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