What are the advantages of placing money on stocks.
Stocks are one of the methods of increasing wealth. It is the combination of the sellers and buyers of shares which belong to the business. In this you can buy the shares of the business so that you have partnership with their business. The share value increases if the business works well and all the other investors interested in purchasing the shares. The share holders will loss when all the investors want to sell their shares. Usually share holders sell their shares when they get double of their investment. If all the share holders sell all their shares the value of the stocks will suddenly fall down. You can buy the shares of the companies of Gabe Plotkin like the Gabe Plotkin Melvin Capital.
Where you can buy the stocks?
- If you want to buy stocks then you have to buy on correct platform. There are many platforms where you can buy stocks. In order to buy stocks you have to have a demat account. To open the account you need to provide all the documents that are necessary.
- The stocks are started since twelfth century and the tradition continues. Stock exchange is a place where the buyers and sellers exchange their stocks. Many big companies listed their names in the stock exchange and this makes the stocks more interesting.
- In the stock market there are two types of financial markets are available. One of them is money market and the other is capital market. Money market includes the involvement of money in the financial assets with high returns. The term of this market is short termed and the returns are within the one year.
- Capital market includes the medium sized and large sized investments and the returns are not much higher than the money market. Depending on the financial assets these are of two types and they are primary and secondary.
- Primary market involves where the financial assets are generated and these assets are directly transferred to the seller. In the secondary market existing assets are transferred which were issued at the last time. In this market the transactions are allowed only to the customers who have previously purchased in the last time.
- Only these customers are allowed to buy or exchange the sellers and these are allowed to buy the shares.
Hope the above information provided will give you clarity about the different types in stock market and the various transaction procedure.