why do people trade in stock market?

Question

The main reasons of trading in stock markets. It can be considered as individuals' point of view and corporative's point of view as well.

Answer 1

To make money.

Answer 2

1

Answer 3

Hi,
You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org )

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org
I hope it helps

Answer 4

For various reasons, but usually it's to save or make money. In general terms the stock market makes investors more than that of normal savings accounts. A bank normally gives 1-5% interest on savings accounts whereas the stock market usually returns a rate of 10-12% per year. However, there is more risk in the stock market. Sometimes you'll lose money. If you don't have a clue when it comes to buying stocks, then I would suggest talking to someone that has and they're someone that you trust. The person you talk to needs to have made money in the stock market as well. Good Luck!

Answer 5

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/pennystocktrading
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.

Answer 6

People invest in stock market for the following reasons

1) Comparatively quick , high return than bank deposits , post office deposits, life insurance policies and other debt instruments and in landed property.

2) There are chances of getting more return in the form of dividends, bonus, right in proportion of your holding. In Bank deposit you get fixed return depending upon period you choose.

3) Amount per unit of investment is less say even a lot of 1 Rupee face value share is traded on the stock exchange in Bank deposit such limits are fixed and generally higher.

4) Total Income from dividend is tax free irrespective of amount. While interest income is taxable.

5) No tenssion of preserving. No physical instrument They are in electornic form.

6) No fix value, in future it may go up in multiples generally appreciation is good

5) Leqidity : Shares are traded on stock exchanges any time you can cash them. Investment in land or building is not that easy you have to wait for realising the sale proceeds. In LIC you have to wait till the period of maturity if inbetween you need money only surrender value of the policy you get.

6) Your funds are directly employed toward the use in the productive means of your choice. you are not sure when
the projecta will generate profit. till the break even point. yet you invest with a view that you are part and parcel in the development process and your intention is not simply profit but your funds are deployed for productive and employment generated projects. Here your object is not profit but some thing more than profit. In such cases government give tax benefits to the investors for such invested amount.

People invest is shares for quick handsome return even if you donot have shares you can trade and earn profit with out investing in intraday transactions purchase at low rate sale if the price increase on the same day.

Answer 7

The same reason why you would put a house on the market. You want to trade in a place that can price through supply and demand.

The more demand you find for your shares, the more money you will make causing you to make profits.

Without markets, you would buy a house 20 years ago and sell it for the same exact price today. There would be no protection against inflation.

Answer 8

well, its very simple....u get higher returns in stock market compared to other modes of investment....If you invest your earning in a bank deposit, it wont give u a return higher than 8% p.a.(no bank gives that anymore) But if u invest the same amount in shares (after proper study) u can earn the same return in less than a month.

You dont earn much in bank deposit coz ur money is safe with the bank, and u know u will get the money back at the end of the term. So there is very low risk.

So inspite of such high volatility, if u book your profits on time in a share market, u can make money within no time..

Answer 9

Capital of a company does not change by its share value. Share market is also called stock market. Suppose you purchase a share, the company gives you some portion of divident and keep some portion of divident in its reserve fund. If you sell the share you get its price and the portion kept by the company, so its value changes gives profit or loss.

Answer 10

One thing you can do is enroll in Etrade and set up as many test portfolio's as you want and pick stocks and then watch their performance and make adjustments as you wish. That way you learn how to work the various features of the site. I personally maintain several in addition to my actual portfolio's just to follow various sectors of interest.

Answer 11

2