Why learn about stock investing?

1. What is a stock?
A stock (stock, shares) is a part of the ownership of a joint stock company, and is also a certificate of ownership issued by the joint stock company to raise funds to each shareholder as a certificate of ownership and to obtain dividends and bonuses. Stock is a long-term credit instrument in the capital market, which can be transferred, bought and sold, by which shareholders can share the profits of the company, but also bear the risks caused by the company’s wrong operation. Each share of stock represents a basic unit of ownership in the business. Every public company issues shares.
If you own stock in a company, you become a shareholder in that company. If the stock price goes up, you’ll make a profit; On the contrary, if the share price falls, you will face a loss.
2. The origin of stocks
Stock, as an important financing tool in the financial market, has a long history. With the development of economy, in order to raise capital and share risks for the voyage, western capitalism has raised funds by the method of shares, that is, before the voyage, it recruited shares, and after returning, it distributed profits according to the proportion of the withdrawal. At the same time, with the enactment of relevant laws in the United Kingdom and the Netherlands, Creating legal conditions for the creation of stocks.
With the birth and development of the joint stock company, the way of raising people’s shares in the form of stocks has also been developed, and there has been a demand for trading and transferring stocks, which has led to the emergence and formation of the stock market, and promoted the perfection and development of the stock market.
3. The advantages of investing in stocks
Stock can be said to be an investment tool with the highest return on investment in the financial field, and the main reason for us to invest is to get more profits. The more profits we get, the greater people’s investment enthusiasm will be. Just imagine, if the profit of an investment is low enough to be less than the amount of bank deposits, will anyone put money into it? The answer is definitely no. It would be safer to put it in the bank and earn interest. In the stock market almost every day there are stocks up by the limit, that is, these stocks can bring us a yield of 10% a day, in the bull market, we can close our eyes to buy stocks can make a lot of money, which is why many people go to the stock market an important reason.
Compared with some other high-return financial products, stocks are relatively safe, after all, they are traded through regular brokerages, and they do not have to worry about their money being swept away. There is risk in any investment, and there is also a lot of risk in stocks, so often we will see a warning: the stock market is risky and need to be cautious about entering the market.
Although most of the losses in the stock market, but there are also a lot of money, and many people even called millionaires, multimillionaires and even billionaires through the stock market, which also stimulates more people to enter the stock market. Moreover, the operability of stock investment is relatively strong, which is mainly reflected in three aspects. First, the procedures are simple, and trading can be carried out anytime and anywhere through the stock speculation software provided by securities companies; Second, the principal requirements are not high, there are thousands or even hundreds of pieces can be traded in stocks; Third, the time requirement is not high, you can do it anytime, anywhere.
The liquidity of stocks is relatively strong, stocks can be sold at any time the next day after buying, so holding stocks and holding cash is almost no big difference.