Advantages And Disadvantages Of Investing In The Stock Market

I have learned that prices can rise or fall quickly and unexpectedly, and there are low-risk and high-risk stocks in the stock market. Share prices can change quickly and dramatically, because they are based on supply and demand. For example, if more people want to sell their stocks than buy them, the prices of the stocks will fall. This is important to take into consideration, because you do not

The weekly performance of IBM stock presented a contestant growth. One highlight of the falling of stock price in the 6th week in the investment period was when IBM presented the 3rd quarter financial report. The investors weren’t satisfied with the profit report which they expected to be better especially when other IT companies were doing well in the 3rd quarter. One mistake I made was that I didn’t follow closely to the financial report of the company; therefore, I missed the peak of the stock price. From this experience, I learned that financial reports and current news are important indicators of the stock price. By following closely to the current event and analyzing the financial report, investors can maximize the profit and also become more familiar to the market.

Investors are always tempted to invest in business opportunities that promise good returns. However, this may drive them gambling tendencies and loss of investment. When savings are seen as appropriate ways of investment accompanied by initial outlays and delight of first results, temptations arise with the call for further re-investments. Investors have critical choices to make at such a point. This is because the accomplishment of the initial investment can characteristically accelerate an appetite for further investment that might expose them to risks. This is an essential stage in the path of any investor and a wise one identifies and effectively navigates this phase (Bery, 2007).

These decisions may include selling and buying of stocks, bonds, futures, currencies and so on. Stocktrak.com helps to implement the investment decision process as it includes evaluation tools for securities being traded at stock market. The website provides graphical historical performance of stock prices and this graphical performance can be analyzed for making different investment decisions related to those stocks. This project will be investing the given specified amount in a portfolio. The portfolio investment will help to reduce the level of risk associated with investment. With the reduction in level of risk, the average return of portfolio investment will increase as compare to individual investments. Thus, portfolio investment is better option for investment as compare to individual

The stock market prices and value vary day to day as a result of market forces. This means that stocks and shares prices change as result of supply and demand of goods and services. The stock market influences the financial decision making of companies. Therefore, it is important to follow said shares as well as others that might affect stocks of interest. Price vary accordingly with demand and supply, that is, if there is a higher demand then prices increases, whereas, if supply is higher than demand, stock prices decreases.

I think it is very important for managers to know the business in order to be able to help others with their career. Organizations usually bring in management from outside the company which makes it hard for employees to learn from management.

Explain why you think these particular investments would be good choices. (3-6 sentences. 3.0 points) Investing in stock shares that may pay me a good amount later I the future. Also I would invest in a new company to get them on their feet so they can start to gain money. I would also want to invest in a savings account that would pay me over time.

Business managers are microeconomic market participants. Microeconomics helps businesses to make important decisions by providing analytic tools about firms and market structures to improve a company’s business practices.

Before recommending investments, it is necessary to better understand the investor’s goals, life stages and risk tolerance. Whether it be a small or large investment, there are several stages to deciding upon the best investment(EdwardJones, n.d.):

There are a lot of companies worth investing in around the country and the world. An investor cannot simply put his money into a company without doing some research beforehand. Using ratios, balance sheets, income sheets, and other financial information, a potential investor has a lot of resources to use to ensure a good investment is made.

There are upsides to this and down sides, but as a new investor your goal is to get your foot in the door and make some purchases. You can invest by your self, if you have enough financial backings to do so or your going to use a brokerage firm. A brokerage firm defined by Wikipedia is “a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller”. To simplify that, a “broker” is the person or firm you pay to make money for you. Financial securities refer to stocks themselves or anything else representing a value of money or goods. The broker is the single thing you put your trust in to not lose the money you entrusted to them. Getting a broker to do all the work for you seems simple, but when you look at all 631,000 brokers and the 3,700 firms they represent, you might not know who to choose. Keep in mind this starts to get expensive, brokers take cuts out of your returns because they need to get paid to. This is the cost of having someone make sense of all the transactions that occur in the market.

Investing allows an individual to continue earning money 24 hours a day, seven days a week and 365 days a year. It does not matter whether they are working at their day job, mowing their lawn or simply doing nothing. In other words, investing maximizes an individual 's earning potential.

* Stock prices change only when there is new info- cannot be predicted ahead of time

In order for a new venture to be successful, the management plays a vital role. When a business grows, it can never be a one-man show, but it needs the management as a whole to take responsibility. An entrepreneur can have a business model that has the

Business Studies is an important course that prepares students to face the real practice of commerce. Engaging theory and practice is instrumental in ensuring that students learn the underlying factors that determine the practice of every business practice. Carroll and Buchholtz (2011) suggest that business forms the backbone of the current economic activities as every activity of human life must involve some loss and gain together. Additionally, he notes that entrepreneurship is taking deep roots in the society, a condition which mandates everybody to possess some knowledge in business. Drawing reference from the aforementioned statements, it is important for the society to have individuals who possess not only