Investing in Stock Market?

Before investing in share marketing, you must ask yourself why you want to invest in stock market  and what make you to put your hard earn money in stock market. Below are some basics questions to check are you really into to buy you first share in stock market:

1. What is stock?

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price

2.  Are you an  “investor”  or a “Speculator”

“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative

An investor is someone who carefully analyzes a company, decides exactly what it is worth, and will not buy the stock unless it is trading at a substantial discount to its intrinsic value. Inevstors make their investment decisions based on factual data and do not allow their emotions to get involved.

A speculator is a person who buys a stock for any other reason. Often, they will buy shares in a company because they are “in play” (which is another way of saying a stock is experiencing higher than normal volume and its shares may be being accumulated or sold by institutions). They buy stock not on the basis of careful analysis, but on the chance it will rise from any cause other than a recognition of its underlying fundamentals.

3. If you are investor, how much you know about the stock that you are going to invest?

You need to understand  the company business , financial condition and prospect. Do you know where to get those information?