You may have heard about the stock market every day, but there are many people who don’t understand the term securities. Let’s find out what Taimienphi.vn is about securities and why many people invest in such securities in the article below.
What is stock?
Securities are known as assets, stocks, bonds, currencies, … issued to the stock market for trading. The stock market is a place where you can buy, sell and trade stocks on any given day. Apart from the name of the stock market, this place can also be known as one Stock exchanges. The stock market plays an important role in economic development because it enables the company to quickly access capital from many investors.
What is the stock exchange?
The stock market is built to meet the main goal of providing companies with capital to expand their businesses. If a company issues 1 million shares on a stock exchange for $ 10 per share, the company will collect $ 10 million to grow the business. By stock issue On the stock exchange, the company will have the capital needed to expand its business instead of having to borrow from banks to avoid debt and or to pay high interest rates.
Why do so many people invest in stocks?
+) The stock market meets the needs of investors about the opportunity to buy stocks to gain profits from development companies. Some types of stocks are Dividend Payment often while others may benefit from a job Sell them at a high price than the original purchase time. What is the return on stock investment will be explained in the next article.
+) Unlike real estate investment, playing securities is easy to buy and also easy to sell.
Risks when investing in securities
The downside when investing is easy to risk. When the stock price reduced to 0, you will lost white Investments. If the securities company goes bankrupt, the securities investors will be paid after bondholders. If you need to ensure profits, you should stick with bonds and when you want to stand side by side, the stock is the more optimal choice.
When stock prices fall less than 10 percent known as the market adjustment stock. When the stock price sudden decrease Many times in a day means the market Stock collapsed. And when the stock price 20% off or more is called the stock market in a downward or downward direction bear market to show that the stock has not stopped falling. This condition usually lasts up to about 18 months. Contrary to the bearish market, people call it a good bull market pull market to show up a steady increase stock prices and many are confident that the upward trend will continue.
Stock investment is like a roller coaster up and down difficult to control. Therefore, if you intend to invest in securities, you should consider carefully. Next to the concept of What is stock? If you want to know more about economic field, you can refer to basic technical terms such as What is stock? What is the stock? What is the bond? through the articles that Taimienphi.vn has updated in detail and clarity.