invest in stock market, as a way to get additional income
Those who start a separate process of investing in the stock market, to become a private investor. In addition to the private investor (such as most of us) on the stock market are also banks, mutual and pension funds, and investment companies. The number of clients - natural persons, who opened the account on the MICEX exchange, is growing from year to year, which proves the high interest of people to invest in the stock market. Indeed, if this were not so profitable, the people wouldn't have to deal with it. Let's face it, the reason of such an interest?
For the developed and profitable stock market is always working and growing economy. Ask yourself a question: how did the stock market arises growth of money? If there is no real ground, which allows you to create income in the financial market, how do they arise? Financial pyramid? «Soap bubbles»? No. All of this has many times have we, Russians, were held, but only since 1999, the stock market in Russia is really working. And the reason for this is that to make money in the stock market is possible only provided that the company, whose shares are becoming private investors, operate, develop and profit. So, here are the main source of income on the stock market - profit companies. Acquiring the share, you essentially get a part of the company, and if this company operates and receives income, together with her work and bring income and Your money.
Profits of companies all over the world, is closely related to the rate of economic growth. If economic growth rates are falling, or in the economy enters a period of recession (economic recession), the profits of the companies are reduced (and they may incur losses). In this case, shares fall in price, and the investor, who bought the shares , may suffer a loss. But there is good news - you can earn and during the fall of the market. For more on this later in the section «Long and short positions»
Of course, in order to successfully invest in the stock market, knowledge is needed. You've got to learn to understand how the stock market works, what are the principles of his behavior, how to analyze the behavior of the securities and the activity of the companies. Note, however, that in order to receive income in the stock market, you don't need to independently build the company, to carry out marketing, management, production activity and etc. For you have already done this the other. Essentially, this is the team of professional managers, who works for You, as well as to the other shareholders. Their activity is reflected in the financial statements, prepared by professional accountants and check reputable auditors. Statements and plans of the companies constantly examine and evaluate a number of professional analysts. All these people work for you - private investors. You will only need to learn to understand that such an investment, how to Orient themselves in the flow of information, daily coming from the stock market and how to effectively turn their knowledge and skills in the money. Because the stock market - this is for those who know and know how the money to make more money
