What are the advantages of investing in a stock market?

Question

What are the advantages of investing in a stock market?

umaan waqar 5 months 1 Answer 95 views

Answer ( 1 )

  1. Investment in share market is become a very attractive source of investment in these days. The share investment is not like a Bank FD which assures a fixed return but there are always ups and downs in market and a deep study of market and good awareness of market trends is the key for successful prediction of success.

    There are many advantages as well as disadvantages of investment in share market,but we must always remember that it is a business and the rules of this business must be carefully followed for safe and secure trading.

    The advantages and disadvantages are as under.

    Advantages-:

    Opportunity to get more returns on investment comparing with Bank FD, Mutual Fund, Postal Saving etc.
    Investment is not blocked for specific time limit. If the market value of your shares increased you sell it within a short period (Bank FD can be withdraw only after maturity otherwise interest is deducted.)
    Liquidity- The volume of transactions in share is market is very high.
    If you have a deep study of market trends and have a good confidence you can earn while market is growing as well as it is sleeping.
    You own your own business with literally do nothing.
    Unlike other business, you need a team. But here, you can work yourself and from home!
    Disadvantages-

    Risk Factor is the major disadvantage because there are many factors which affects the market.
    It is not that easy to control your emotion.
    Many times the new comers and also the experienced traders depends upon the Tips which may be cause to loss.
    Keeping in to mind all these merits as well as demerits one should enter into market with deep study and strong confidence. A long term investor who invests carefully always gain success in market.

    Hope this helps!…

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