Trading market can be divided in to two parts primary and secondary market. As its name says initially companies present their shares in the primary market and then it get listed for stock or equity in the secondary market.
The possibility of earning the maximum profit than any other investment always attracts the buyers towards equity market. Once you buy a share of any company you become the shareholder and in long run with the company’s progress you can easily book your profit.
What are the risk factors of share market?
If without analysis you set your financial goal in equity market then it is definitely risky. So a detail study is necessary like company’s main source of income, its expansion planning, upcoming projects, its liabilities etc. You have to go through in detail about the growth chat of that company. These are some factors on which a company can extend its control by performing well. This is only a part of the analysis, the other part includes things like natural disaster, governments subsidy schemes, international relation with other countries (related to border and financial issues) etc. these are the parts where you need to be very careful because this is not the only question about the company, it includes the entire country, anyway if a company maintains its consistency then in long run everything will be ok.
Points for final consideration
There are certain points on which an investor should pay focus
1. About your broker – whether registered under SEBI or not
2. Be careful about rumours
3. Always calculate the risk and prepare accordingly
4. Never go beyond your set limit.
If you follow these simple steps then definitely you can minimise the risk and win the profit.
No comments:
Post a Comment