Why study stocks

1. What is a stock?

Stock (stock, shares) is a part of the ownership of the joint-stock company, and it is also a certificate of ownership issued. It is a kind of securities issued by the joint-stock company to each shareholder as a certificate of shareholding to obtain dividends and bonuses in order to raise funds. Stock is a long-term credit instrument in the capital market, which can be transferred, traded, and shareholders can share the company’s profits with it, but they must also bear the risks brought about by the company’s operational errors. Each share of stock represents the shareholder’s ownership of a basic unit of the business. Every public company issues stock.

If you hold stock in a company, you become a shareholder of the company. If the stock price goes up, you will make a profit; on the contrary, if the stock price goes down, you will face a loss.

2. The benefits of investing in stocks

Wealth appreciation:

Learning about stocks can help you grow your wealth. The stock market has high growth potential, and with the right investment choices and long-term holdings, you can gain asset appreciation and dividend income.

Asset Allocation: Learning about stocks can help you achieve better asset allocation. Stocks, as a financial instrument, can provide long-term growth and investment returns. By understanding the stock market, you can use stocks as part of your asset portfolio and choose a portfolio that suits you according to your investment goals and risk tolerance.

Financial common sense:

Learning about stocks can also improve your financial literacy. Understanding basic concepts such as company financial statements, profitability, business model, etc. can help you better understand and evaluate the company’s value and potential.

Investment knowledge:

Studying stocks can help you understand the fundamentals and methods of investing. By learning stocks, you can gain knowledge about investment, including the operating mechanism of the stock market, fundamental analysis, technical analysis, risk management and other aspects of knowledge. This will enable you to better understand and evaluate different investment opportunities and make informed decisions.

In the stock market, there are stocks with daily limit almost every day, which means that these stocks with daily limit can bring us a 10% rate of return in a day. In a bull market, we can make a lot of money buying stocks with our eyes closed, which is why An important reason why many people go to stocks.

Compared with some other high-return financial products, stocks are relatively safer. After all, they are traded through formal brokerages, so you don’t have to worry about your money being swept away. Any investment is risky, and stocks also have great risks, so we often see reminders: the stock market is risky, and we need to be cautious when entering the market.