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| The NYSE (New York Stock Exchange). |
The stock market is one of the fastest
growing investment options for everyday middle class investors and – although
it is nothing new – the increased ease with which stocks can be traded (even
from a handheld device) has made it a more attractive option for investors from
all walks of life. On that note, there are two distinct approaches taken by
most investors when it comes to investing in the stock market. Naturally, both
aim to turn a profit but the way in which they hope to accomplish this differs
somewhat between them.
1)
Stock Price - This is what most people are familiar with; investing in a company's
stock in the hope/expectation that its share price will rise. This might be due
to the company being undervalued or it might be a prediction based on market
factors (such as the purchase of Apple stock right before the release of a new
and highly anticipated product).
2)
Dividends - Most companies
pay out dividends to stockholders on a regular basis. These are payments taken
from the companies profits and paid out to shareholders in direct proportion to
the number of shares they own. Depending on the volume of shares an investor
owns and the company in question, these dividends can represent a significant
regular income and make the stock highly attractive for long-term holding.
Naturally, a combination of these two in
possible and – indeed – a stock that consistently turns enough of a profit to
pay healthy dividends on a regular basis is likely to see its price rise. As for
deciding on which stocks to buy, inexperienced investors are best off talking
to investment advisors about their options. These can typically be found at any
bank or brokerage firm and can offer valuable insight into the opportunities on
the market at a given time – as well as the risks to stay away from.
Thank you for reading.
CEO
Support@OrionExchange.com
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