Shares are securities of a company that are issued to raise additional funds. Buying one or more shares, a person invests in the company, thus becoming its co-owner and receiving the right to a part of the profits. In order to receive good dividends, it is important to choose the stock to buy wisely.
Instructions
Step 1
Study carefully the current state of the most potential investment companies. For example, you can take a closer look at one of the well-known stable companies, which, although slowly, is growing. You can also buy shares of a young and fast-growing company, which is not characterized by a high level of stability.
Step 2
The first path is most often able to bring a small income, but at the same time you will be confident in it, as well as in the fact that you will not only stay with your money, but also gradually increase it. For example, it is currently profitable to invest in the so-called "blue chips" - shares of the largest US companies with a volume market share.
Step 3
Use the second way if you are not afraid to take risks and want to increase your investment faster. However, remember that an unstable company can quickly sink and cease to exist. Get acquainted in more detail with all existing trading methods and rules in order to make the right choice in the end.
Step 4
Choose stocks of large companies. Since they are distinguished by a large size of market capital, there is a fairly low risk of a fall in the value of shares, even with the speculative behavior of traders on the stock exchange. These are stable businesses that often justify the investment. Try to be present at all shareholder meetings to keep abreast of the company's plans. Study the general indicators of the development of the economic industry in which the enterprise is concentrated.
Step 5
Try investing in stocks through a mutual investment fund (MIF) if you are in doubt about your knowledge of securities trading. The mutual fund specialists will help you choose stocks and form an investment portfolio. However, even the right choice of a mutual fund and control of its work requires at least a minimum of general knowledge about investing in stocks.
