Primary Reasons to Investing in Stocks

Stock is the share of ownership of to company. When you buy stocks, you became a co-owner of the company you purchased. Stocks are being bought and sold in a stock exchange or stock market wherein there you will buy and sell shares. You should have a stockbroker prior you can buy or sell stocks in a stock market. There you will enroll an online stock trading account so that you can buy or sell stocks personally.

I encountered the word “stock” six years ago when I worked in a manufacturing firm in the Philippines. It was provided to me by the company because it is one of the privileges of all the workers. The number of stocks disposed to meet depends on the job function. That stock aid is without a doubt a big help for my loved ones and me in terms of our financial demands in those time.

Investing in stock is a good investment you can ever make if you only learn when and how to invest in stocks. You should also have knowledge, discipline, and perseverance in managing your portfolio in order to have an excellent profit from stocks. Remember that you can only lose money in stocks in two actions: when you buy and sell it.

In addition, one good thing about investing in stock is that it will give you higher earnings in the long term than other investment methods available presently. Long term investing in stocks means you will buy shares regularly to selected stocks greater than five years.

In the Philippines, blue chips are those stocks comprised in PSE Composite Index (PSEi). According to on the fac tots from PSE and BSP, the shares invested in blue chips will give you a 14% average annual total return according to on the past behavior of Philippine stock market from January 1989 to August 2009.

Moreover, for the last 20 years, investing in stocks gives you higher average annual total profit compared to Treasury bills (T-Bills) and savings account with 11.0% and 2.3% average annual total returns, respectively.

Therefore, investing in stocks, particularly blue-chip stocks, is the best technique to earn a more significant profit in stocks.