The pros along with cons of investing in a stock market

The pros along with cons of investing in a stock market

Business

To invest in a stock market is nothing short of a horse race. This is more of a gamble replicating horses for courses policy evaluating the vibrant nature of the stock market. You would have heard of NSE margin an area where stocks are bought and sold. People end up earning or losing money during the course of transactions which is dependent upon the stock you are dealing on the particular day.

The Indian stock market is in a vibrant phase and even if a slight change occurs at a global level you need to evaluate why you should invest your funds in a stock market, and explore the possibility of some reliable options like FDs or it could be real estate. Once again the point of consideration is to invest in a stock market is nothing short of a gamble once you evaluate the vibrant nature of the stock market. This is a platform where people buy and sell shares and during the course of transaction earn profit or make a loss

The positives of investing in a stock market

In a short span of time anticipate an exceedingly higher rate of returns

In the days gone by people have exceedingly made money from the stock market, and you hold a good chance of earning money from the stock market if you hold the principles of stock market investment at your own end. Still when you are investing in stock market all by yourself, you do carry a certain degree of risks, in spite of the fact that within a reasonable time frame you can earn higher returns.

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Minority ownership

This might sound blowing the trumpet, but when you are putting your hard earned money in a company you do become an owner in the company and this has no relation to the amount of share you hold. At the same time you can work towards improving your stand in the market by putting your money in various shares. When the need arises you can exit if you want.

With minority ownership you have the right to vote and at a corporate level the voice of the company is heard.

The loopholes

Volatile instruments

Investment in stock market carries a certain degree of risk because of the volatile nature of the market. Even during a single day the shares of a company go up and down. Price fluctuations during the course of the day are unpredictable and due to these uncertain times an investor has to face up losses during the day.

The commission of the brokers kill the profits

When you are buying or selling a share you need to pay some amount of commission to the broker seeping into your profit margin

Time consuming

To invest in NSE is not an easy task as you can compare it to a lottery process. You need to complete several formalities during the process.

Here are some of the pros and cons associated with stock market trading.