Investing in the stock market has its thrills. That is why it is
not surprising that there are more and more Americans investing
in the market, despite the risks of losing their money to
invest. Why not save, you might ask? It is easier to sleep at
night knowing that your money is safely kept in the bank rather
than knowing that your money you invested in a certain company
gone pffft after the company stock crashes.
But, you see investing has its rewards. True, there are risks,
but risks are part of the game of investing. The hope of having
bigger money after investing looks promising on a variety of
reasons.
What are some of these thrills that make someone go out and
invest in the stock market, hoping for a larger financial return?
First is that, compared with saving, investing is the proactive
use of your money to earn more money. In investing, it is your
money working for you. Unlike saving which is a passive
activity, you invest your money in the stock market and hope for
a larger money return. Now, ain't that fun?
When you buy stock shares of a company, you are in effect buying
a piece of that company. In short, you become a part owner.
Being a stock holder of the company entitles you to certain
rights. This includes voting on important company matters and
getting profits if the company distributes dividends. Doesn't it
feel great, for example, if you own stock shares of Coca-cola?
Another reason to be a stock holder is that you participate in
that company's growth of the company. If for example the value
of the company increases, your investment also increases too. If
profits increase, don't be surprised if you receive bigger
dividend checks. Some stock prices increase for a long period.
For instance, some long-time employees of Microsoft became
millionaires because of the dramatic increase in their stock
value.
"No pain, no gain." It's a cliché, of course, but that is the
one thing that you must remember in investing in the stock
market. How can you get more money if you don't try investing?
Do you really think that your money will increase if you invest
it in a bank (which offers low interest deposit rates) compared
with investing?
Risks are part of investing, as in any other decisions you make.
But given the thrills of investing, shouldn't you be investing
too?
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