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Why Buy Stock?

Prospective businessmen and women will have to answer the question of why would anyone in their right mind buy stocks? As a matter of fact, the real question should be why someone would opt to not buy stock? Possessing stock in an organization means that you own stock with that company. You are invested, even if only a little, in that company whether it succeeds or fails, and that is why you own a part of the company.

A lot of people buy stocks for various purposes. For every person trading, there is a reason for purchasing stock. A few individuals try to get their hands on a majority of stock within an organization so that they possess an element of control within the company. This is not always true, but in most companies, investors who own a large amount of stock do have some say in the decisions made concerning the direction of the company because the company is responsible to those who own shares.

Some people desire to be a part of a company that makes an item that they have faith in. Chocolate is a strong favorite of mine. From my perspective it makes complete sense to purchase Hershey stocks. Chocolate lovers would agree this stock has a solid future and potential for new products, with an emphasis on expanding internationally to new markets. Before buying stock these are variables for individuals to consider. But, I fully realize that with Hershey stocks being so established, I will only have minimal earnings on my few stocks. When all is said and done though, this type of stock is solid and will produce revenues year after year. This is not a fast mover but one that stays with me for the long haul and looks good in my portfolio. To put this in perspective, some individuals will buy stock due to the fact that they enjoy the product.

The main objective of the day trader is to make a profit, but some also do it for the thrill of the hunt for that moment of triumph on the stock market. There are people who purchase stocks to make a lot of money, and there are people who want their investments to make them money right away. When compared to conventional retirement funds, with their long lines of people staying indoors awaiting the long term payoff, day trading is more like a fast food drive-through kind of investment.

There are tons of reasons for investing or purchasing stock. What you should be asking is why people purchase specific stocks; the answer to that question is as unique to each person as is each stock they buy. There is no blueprint for success, but there are many things you are able to do to reduce the risks of failure when investing in stocks and bonds.

The library should be the first place any potential investor goes to. A wide variety of books are available that can explain the history of stocks, financial planning and provide information on how to go about building a portfolio. You can find a reputable stock broker and develop a strategy once you develop some questions and use your savings.





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